THURSDAY3pt stroke AUGUST, 100% 19size, 2021for top VOL. of newspaper 186 No. 159= 8.9931 inches AMERICANBANKER.COM Follow us on Twitter @AmerBanker JPMorgan Chase warns 5 customers of possible data exposure Board disparities The incident, which may have exposed A survey of 44 large banks found that Blacks, Latinos and customers’ account information to other 2.5pt stroke = 6.75 inches customers, was caused by a technical glitch, Asians were less represented on the banks' boards than the company wrote in a notice posted on a in their workforces state attorney general’s website. Page 7

See story on page 2 Personal finance fintech Albert Boards Workforces 6 rolls out checking account The Los Angeles company is bundling a wide 2pt stroke = 5.75 inches range of services like Digit, Dave, Chime, 90% Wealthfront and Moneylion to compete with 80% 80% traditional banks on more fronts. Page 7 70% 60% 58% 50% Mexican fintech expanding into U.S. to 40% 1.5pt stroke = 4.6667 inches 7 30% finance cross-border trade 20% Credijusto, the first fintech in Mexico to 10% 11% 12% 11% 12% buy a bank, plans to cater to a market that 5% 7.5% 0% 3% 1% traditional banks often overlook: smaller 1pt strokeWhiteB = 3 inches lackLaǎno Asian Other businesses engaged in commerce between the two countries. Page 8 Source: Democratic staff report, House Committee, February 2020 Fintechs found 8 to be much likelier to OK suspicious PPP Fintechs were almost five times more likely dailybriefing Will CFPB take cues than traditional lenders to be involved with 3 from in writing suspicious loans issued through the U.S. data-sharing rules? government’s Paycheck Protection Program, Nasdaq rule adds to pressure The U.S. and its neighbor to the north according to a new study. Page 9 1 on banks to diversify boards are each developing frameworks to give The new standards give some 300 listed consumers control over financial data MUFG taps veteran banker to banks up to five years to meet targets for and allow companies to transfer account 9 lead risk in the Americas including women and minorities on their information. A recently issued Canadian Brian Gunn, who will join the Tokyo-based boards, or explain why they aren’t doing government report could influence efforts in bank on next month, previously served as so. State officials and investors had already both countries, analysts say. Page 4 chief risk officer at Santander Holdings pushed banks about the need to rethink their USA, Ally Financial and a GE Capital approaches to recruiting directors. NCR, join subsidiary. Page 10 (See chart above.) Page 2 4 the crypto bandwagon Most people aren’t spending bitcoin in Big credit unions extend  merges two stores, but major point-of-sale terminal 10 help to small peers — but 2 payments groups, hires makers are developing technology and there are trust issues BNY Mellon exec as leader business relationships on the belief that Many credit unions with less than $100 Paul Camp will join the company in demand will build fast. Page 5 million of assets struggle with marketing November to run its new Global Treasury and technology. Larger ones are willing to Management division. Wells Fargo says the lend support, and the National goal in combining its treasury management Association is working to dispel fears that and global payments units is to improve prospective mentors are simply looking for service for clients doing business in multiple takeover targets. Page 10 countries. Page 4 THURSDAY AUGUST 19, 2021 AMERICANBANKER.COM PAGE 2

Two of the nation’s largest states have provision of the Nasdaq rule that requires DIVERSITY AND EQUALITY made related moves in recent years. companies to provide an explanation if they In 2020, California passed a law that do not have at least two diverse members. requires public companies headquartered Sen. Pat Toomey of Pennsylvania, the Nasdaq there to have two or three directors from top Republican on the Senate Banking underrepresented groups by the end of Committee, also slammed the SEC for rule adds 2022. approving the rule, saying in a press And last month, the New York State release this month that SEC Chairman Gary Department of Financial Services asked the Gensler is “turning a financial regulator to pressure companies it supervises to disclose data on into a laboratory for progressive social board diversity, which the agency intends engineering.” on banks to publish on an aggregate basis. Gensler said in a statement that the Critics of the Nasdaq rule argue that it rule will give investors the “consistent imposes illegal quotas and poses an undue and comparable data” they have sought, to diversify challenge for certain companies. They also while also giving companies the “flexibility point to industry-led efforts that are already to make decisions that best serve their boards under way. shareholders.” In recent years, certain banks have Nasdaq said in a statement that it is By Polo Rocha and Laura Alix diversified the membership of their boards pleased the SEC approved the “market-led August 16, 2021 and assigned executives responsibility solution” and looks forward to working with A new diversity rule for companies listed for diversity efforts. Some companies companies on implementation. Nasdaq on the Nasdaq stock exchange represents are experimenting with tying executive is hosting several webinars for companies the latest push to convince banks to add bonuses to diversity, equity and inclusion and partnering with three firms that will more women and minorities to their boards goals. offer free board recruiting services. of directors. If it makes sense for a company to Data on corporate boards’ diversity is While the standards are facing some diversify its board, then a government sparse, an issue that the Nasdaq rule aims pushback, their recent approval by the mandate should not be necessary, said Paul to address by requiring annual disclosures. Securities and Exchange Commission puts Kamenar, general counsel of the National The aggregate data that does exist pressure on Nasdaq-listed banks to rethink Legal and Policy Center, a right-leaning suggests that bank directors are long-standing approaches to recruiting nonprofit organization that monitors predominantly white men. On average, board members, if they have not already public officials. about 70% of directors at some of the done so amid insistence from investors and The group, which filed a comment letter country’s largest banks are men, while 80% state officials. opposing Nasdaq’s board diversity rule, of directors are white, according to a report Advocates for greater board diversity is now considering legal action. It argues last year from the Democratic staff of the argue that directors exercise influence over that the rule violates the Constitution House Financial Services Committee. The a bank’s culture and strategic direction, and by imposing arbitrary racial and gender findings were based on a survey of 44 large say that diverse leadership is often linked to quotas. and regional banks. better performance or higher credit ratings. Kamenar criticized as “disingenuous” the Those banks’ boards did not reflect the One analysis also suggested that companies with diverse boards outperformed their peers during the pandemic. Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 “Leadership and senior management Phone 212-803-8200 AmericanBanker.com should reflect the communities that they 3pt stroke, 100% size for top of newspaper = 8.9931 inches serve in order to create more inclusive Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 decision making and to ensure equitable 2.5pt stroke = 6.75 inches access,” said Rawan Elhalaby, senior Managing Editor Dean Anason 770.621.9935 Reporters/Producers economic equity program manager at the 2pt stroke = 5.75 inches Greenlining Institute. Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 The Nasdaq rule requires companies Miriam Cross 571.403.3834 1.5ptWashington stroke = 4.6667 inches Bureau Chief Joe Adler 571.403.3832 traded on the exchange, a group that Jim Dobbs 605.310.7780 includes more than 300 banks, to disclose 1ptExecutive stroke = 3 inches Editor, Technology the diversity of their boards of directors Penny Crosman 212.803.8673 John Heltman 571.403.3847, Allissa Kline 716.243.2679 each year. And by giving firms the option Hannah Lang 571.403.3855 either to appoint at least two diverse Community Banking Editor Paul Davis 336.852.9496 John Reosti 571.403.3864, Gary Siegel 212.803.1560 directors or explain why they are not Contributing Editor Daniel Wolfe 212.803.8397 meeting that threshold, the rule is intended Kevin Wack 626.486.2341 to gradually make boards more diverse.

For up to date and complete coverage go to AmericanBanker.com THURSDAY AUGUST 19, 2021 AMERICANBANKER.COM PAGE 3 full diversity of their employee bases, with that have pressured banks to diversify their or able to accept the time commitment that Latino workers making up 11% of the banks’ boards. comes with a board seat. workforces but only 5% of their board The bank directors’ trade group is “To satisfy the gender diversity members, and Asian employees making up updating its advice for members, given requirement, IBC would likely have to 12% of their workforces but 3% of directors. that its past guidance “not to discriminate recruit an independent director from Data on the sexual orientation or gender based on race, gender, etc., but to choose outside its headquartered community identity of corporate directors are even directors solely based on merit” may no which would place an undue burden of rarer. An analysis from the group Out longer be suitable for many Nasdaq-listed travel, expense and loss of time, for that Leadership found less than 0.3% of Fortune companies. director to travel to attend meetings,” Nixon 500 board directors are openly LGBTQ. Most companies will want to avoid wrote, adding that it is “very difficult to Rep. Maxine Waters, the California disclosing that they do not meet the find, recruit and maintain” executives and Democrat who chairs the House Financial new standards, given that the public other leadership talent. Services Committee, applauded the Nasdaq and investors would be “incredulous” The bank did not respond to requests for rule but said in a statement that the “work that companies have been unable to further comment. is not done.” She called on other stock find qualified board members within Partly because banking is a closely exchanges to implement similar rules, and the transition period, said Christopher scrutinized industry, it was challenging to asked the SEC to require publicly traded DeCresce, a partner at the law firm recruit directors even before the Nasdaq companies to disclose more diversity data. Covington & Burling. rule was adopted, some observers say. Nasdaq-listed banks will likely take a To meet the standards, banks may “need “The big challenge is that banks require variety of approaches to meeting the new to start thinking more broadly” — looking a lot of preparation for the board meetings. standards, said Anna Pinedo, a partner at beyond their networks of local business It’s quite a heavy lift,” said Mary Caroline the law firm Mayer Brown. “Lots of things leaders, who tend to be white men, Tillman, who co-leads the global financial will go into that calculus,” she said, noting DeCresce said. Those new approaches services sector at the executive search that some companies may want to increase may include reaching out to groups that firm Russell Reynolds. “There’s also a lot the size of their boards, while other firms can connect banks with more diverse of risk involved with these banks. If you go might look to replace directors. candidates and perhaps loosening the onto the board and something goes wrong, Banks will want to consider directors’ typical geographic restrictions. there’s a huge reputational risk.” ages, their lengths of tenure, their different Banking trade groups did not submit Still, Tillman supports the Nasdaq’s rule. skill sets and other factors, Pinedo said. comment letters to the SEC as it was She said that a diversity of thought and Banks will have different deadlines and weighing whether to approve the Nasdaq experience on a board can help discourage options to consider depending on their size. rule. One banker, however, registered groupthink when it is added in a thoughtful Some larger companies will need to have his opposition, saying the rule is “too and deliberate way. She also argued that at least one diverse director — meaning a rigid” and ignores individual companies’ more disclosure about diversity is generally woman, person of color, or member of a circumstances. good for investors, many of whom have religious or ethnic minority — by Aug. 7, Dennis Nixon, chairman of Laredo, sought this information in recent years. 2023 and two by Aug. 6, 2025, or explain Texas-based International Bancshares The ratings agency Moody’s expressed why they do not. For Nasdaq capital market Corp. and CEO of the subsidiary a similar perspective. The Nasdaq rule companies, which tend to have a smaller International Bank of Commerce, noted would encourage transparency and board- market capitalization, the latter deadline is that his company has several directors from level diversity and improve the consistency in 2026. underrepresented backgrounds, as well as of disclosures for investors interested in Smaller companies can meet the diversity several Hispanic women in top leadership environmental, social and governance objectives by having at least two women on roles at the company. issues, the ratings agency said in a recent their board, rather than one woman and The $15.3 billion-asset bank had at research note. Companies with gender- either a director from an underrepresented least one woman on its board until May diverse boards tended to be more highly minority group or one who is LGBTQ. 2019, when longtime board member Peggy rated, Moody’s said in a 2019 note. Nasdaq is saying that companies either Newman retired, according to Nixon. Two analysts at Moody’s said in an have to meet those standards or explain Adding a female manager to the bank’s email to American Banker that they why they have not, for which it says there is board might be “viewed as unfavorable in anticipate no short-term risks arising “no right or wrong” answer. regulators’ and some investors’ minds,” from the Nasdaq rule. Given the focus on That is not much of a choice at all, the Nixon wrote in his letter, citing possible disclosure, “companies can’t be forced to American Association of Bank Directors concerns about tilting the board too heavily comply,” wrote Brendan Sheehan, senior argued in a written statement. Some toward bank insiders rather than outside credit officer and lead governance analyst banks “should anticipate trouble” if they voices. at Moody’s, and Fadi Massih, senior analyst disclose that they have not met the new He also wrote that Laredo’s size — the and lead Nasdaq analyst. standards, the group said, and their biggest city has a population of roughly 255,000 Banks cannot reasonably expect to find shareholders are institutional investors, people — makes it difficult to find a woman the board candidates they want within a proxy advisory firms and activist investors involved in the community who is willing matter of months, according to Tillman.

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But they can start expanding their networks transaction services and cash management countries. and looking at executives who could be at JPMorgan Chase and Deutsche Bank. “For banks that straddle the border, it now ready to serve on a board a few years into He will report to Perry Pelos, CEO of looks like Canada is slightly ahead of the the future. commercial banking at Wells Fargo, and U.S., and is setting up some of the dynamics “It’s no different than doing succession Jon Weiss, CEO of corporate & investment on how the bureau is thinking about it’s planning for your executive suite,” Tillman banking. rulemaking,” said John Pitts, a policy lead said. “Frankly, it surfaces a lot of really “Paul brings valuable expertise to this at the financial data aggregator Plaid and a talented individuals who might not have role where he will develop a strategy focused former CFPB deputy assistant director. even been thought about if you hadn’t on growth and innovation, serving large, The Canadian report comes on the heels of opened the aperture.” medium, and smaller businesses alike,” Weiss President Biden’s executive order last month said in the press release. urging the CFPB to act quickly on a rule that The reorganization will merge Wells’ would make customer data portable. The COMMERCIAL BANKING Treasury Management & Payments Solutions CFPB’s rulemaking was mandated by Section group, which was folded into Wells Fargo’s 1033 of the Dodd-Frank Act, a law enacted 11 commercial banking unit last year, and its years ago. Wells Fargo Global Payments Solution group. The former The rule could be one of the most team is run by Danny Peltz, who is retiring in consequential policies implemented by Rohit merges two December after 31 years at Wells. Chopra, Biden’s nominee to lead the bureau. But Chopra is still waiting for confirmation by the Senate, which is expected in September. payments FINTECH REGULATIONS The CFPB asked for industry feedback in an advance notice of proposed rulemaking groups, hires issued in October. Will CFPB Banks and fintech firms are paying close attention to the Canadian advisory board BNY Mellon take cues report because it details the scope of how much data should be made available to third- exec as leader party providers and how companies would from Canada be held liable for a data breach if a consumer By Polo Rocha suffers a financial loss. August 17, 2021 in writing “The [Canadian] report is the playbook for Wells Fargo has combined its treasury how to implement an open finance regime,” management and global payments services said Steve Boms, executive director of the units into one group, and has hired a former data-sharing North American chapter of the Financial Bank of New York Mellon executive to run the Data and Technology Association, a trade new division. rules? group representing data aggregators such as Paul Camp, who was most recently the Plaid, Envestnet, Yodlee, Intuit and MX, as CEO of treasury services at BNY Mellon, will By Kate Berry well as the fintech firms themselves. join the bank in November August 17, 2021 The report doesn’t have the force of law but as head of its Global Treasury Management As the Consumer Financial Protection rather signals that regulatory action will be unit. Bureau mulls standards on the portability of taken to make firms accountable in an open The recently created division will help consumer financial data, a concurrent effort banking regime, Boms said. Wells Fargo “leverage its capabilities more by Canada to craft an open banking system “This provides more momentum for effectively to help clients manage their funds could help determine the shape of U.S. rules. a fulsome 1033 rule, because our closest and process payments worldwide,” the $1.9 An advisory report issued earlier this neighbor to the north is now on its way to trillion-asset bank said in a press release. month by the Canadian government calls doing something very similar to what a 1033 Camp overlapped with Wells Fargo CEO on Ottawa to launch a new framework by rule would do here in the U.S.” Charlie Scharf at BNY Mellon when Scharf January 2023, with rules for banks and Canada, like the U.S., is trying to facilitate was the top executive at the New York-based an accreditation process for third-party efficient data-sharing between banks and trust bank. Scharf, who joined Wells Fargo in providers to govern data sharing. fintech firms — giving consumers access 2019, praised Camp’s experience earlier that The CFPB plans to have a data-sharing rule to third-party apps — that moves on from year when Camp was added to BNY Mellon’s in place sooner, by April 2022. But observers much-criticized screen-scraping practices. executive committee. note the Canadian report has shed much The report states that “screen scraping Camp is the former chief financial officer, more light on what an open banking regime presents real security and liability risks,” treasurer and executive vice president would look like than the U.S. agency’s request because it requires consumers to share their of financial operations at the payments for public comment issued last fall, and could banking login credentials with third-party fintech Circle. He has also held top roles in influence the rulemaking process in both providers.

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While fintech companies still use screen- Banks have been concerned that fintechs be on the hook. scraping to obtain access to consumer bank could change consumer data. So the carve- “To put it simply, liability should flow records, many aggregators have created out for proprietary data would allow banks with the data and rests with the party at partnerships with banks to send data to to create their own proprietary products that fault,” the report states. “Furthermore, the fintechs using application programming could be sold to consumers. priority for the liability structure should be to interfaces. “The division between proprietary and provide effective protection and redress for Banks remain concerned about the security nonproprietary data will make the banks consumers.” of consumer financial data and continue happy,” said Pitts, the Plaid policy lead. “A Some experts said the Canadian to advocate for increased supervision of broad scope of data — which is what Canada government is essentially weighing in on the fintechs. has proposed here — means that the number concept that third-party vendor management Fours year ago, the CFPB outlined broad of value-added products or proprietary doesn’t quite work in an open banking principles for protecting consumer when products that can be built on top of those regime. they let fintech companies access their data. pipes are also much broader.” “Third-party liability is huge,” said Pitts. “Since the CFPB released its principles “Those two paragraphs are going to end up in 2017, banks, data aggregators and other Technical specifications being the two most critical paragraphs in technology companies have worked together Canada did not endorse any one this entire report because they ultimately are to invest in technologies that move away technology or standard for data-sharing. pushing in the direction of saying that these from less secure methods of data sharing like Instead, the advisory board report fintechs aren’t your vendor, they’re not a screen scraping to more secure API-based encouraged industry to continue working traditional third party, so banks don’t have standards that give consumers transparency on technical specifications for an open liability for what they do.” and control when they share their financial banking regime and it set a deadline of nine The report’s recommendation comes at data,” said Rob Morgan, senior vice president months after the government appoints a lead the same time that prudential regulators in of innovation and strategy at the American authority to oversee implementation of the the U.S. are jointly proposing guidance on Bankers Association. open banking system. third-party risks, including the risks of fintech Prime Minister Justin Trudeau may partnerships. Broad scope of data appoint the lead authority before Canadian The proposal by the Federal Reserve, When it comes to what data should elections to have specific purview over Office of the Comptroller of the Currency and be included in a Canadian open banking the design of the open banking regime in Federal Deposit Insurance Corp. centers on regime, the report takes a broad view by collaboration with industry stakeholders. the responsibilities of banks when practicing recommending that checking, insurance Some suggest that the CFPB also is seeking risk management with business partners. and brokerage accounts should be included. to be technology-neutral by setting ground “The fintechs In Canada were advocating A key takeaway is still that the data will be rules for protecting and giving control to for liability,” Pitts said. “The advisory limited to lower-risk, “read-only” activities consumers while the industry delivers on committee framework recommends that seen by a consumer, experts said. technical specifications. fintechs have to be accredited, and once they “The scope of Canada’s open banking “This isn’t just an opportunity in Canada,” are accredited, liability follows the data. So as system in its initial phase should include data Carpenter of FDX said. “We are working to get soon as the data moves from the bank to the that is currently available to consumers and it right and be the market’s preferred standard aggregator, it’s the aggregator’s liability.” small business through their in Canada and in the U.S., which sets up this applications,” the report said. same hybrid approach where government Companies retrieving data on behalf of a does some of this through regulation and the consumer would be limited to collecting data market really figures out the technology to that the consumer can see on a screen. deliver on.” “With a few exceptions, if you can see it on NCR, Diebold your screen, then this report says it is in,” said Who pays if something goes wrong? Tom Carpenter, director of public affairs and Another key takeaway from the report Nixdorf join marketing at the Financial Data Exchange, involves establishing liability to determine a Reston, Virginia, nonprofit that is working who is responsible if a data breach occurs to set technology standards. “The report’s and how compensation would be provided to the crypto initial scope says it is data that is traditionally consumers when something goes wrong with readily available to consumers through their data. bandwagon online banking rather than tying it exactly to In the U.S., banks are ultimately each website.” accountable for managing the risks of By John Adams Excluded from the scope is proprietary third-party business arrangements. But the August 17, 2021 bank data such as internal credit risk Canadian government report proposes that Cryptocurrency has always been tough to assessments or “know your customer” that liability moves with the data, suggesting adapt to mainstream payments, in large part standards that are designed by banks to that a nonbank fintech firm with access to a because most point-of-sale vendors didn’t protect against fraud and money laundering. consumer’s account information could also have any need to support it.

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That’s changing, as major hardware makers billion in crypto in circulation in early 2020. sale locations. CoinMe has also added to its like NCR and Diebold Nixdorf are finally That growth will lead to consumers cash-to-bitcoin kiosk network in partnership hearing — and responding to — demand wanting ways to cash out, such as by spending with Carrs and Safeway Supermarkets. from merchants. their cryptocurrency directly, according to The crypto industry will have to make “Crypto payments are rare but we’re Vanderham. it simple for retail customers to make rapidly getting more inbound requests from Merchants “will need these capabilities payments directly from their crypto wallets clients in retail, restaurant and banking,” said now, but even more so in six months and and incentivize such usage to encourage Tim Vanderham, chief technology officer much more so in 18 months,” Vanderham adoption, Choi said. at NCR. “That’s happening because there’s said. “Payment processing costs are a very consumer demand for crypto payments.” NCR is working on a cryptocurrency significant part of retail businesses, and Even in the bubble-and-burst world of payment system that allows consumers crypto can dramatically reduce these costs cryptocurrency, the past year has seen a to scan a QR code or use a mobile wallet, and improve the bottom line,” Choi said, huge boost in public awareness among similar to contactless mobile payments. The adding the technology has to remove as much consumers, financial institutions and merchant will have a choice of settling in friction as possible. “We can’t expect retailers payment companies. For NCR and Diebold traditional currency or cryptocurrency, with to receive bitcoin for payment using standard Nixdorf, crypto has become an inevitable NCR relying on near real-time processing to consumer wallets. We need to provide part of their product strategies. mitigate cryptocurrency’s valuation swings. integrations that mimic currently popular Atlanta-based NCR struck a deal this The process is similar to any other tender and widely adopted payments infrastructure month to acquire LibertyX, a Boston-based type, and NCR anticipates consistency in such as NFC-based payments like Apple and company that operates bitcoin ATMs and payment processing for stablecoins or central Google Pay.” kiosks, with a network of about 20,000 retail bank digital currencies. BitPay, which supports cryptocurrency stores and 9,500 ATMs in the field. LibertyX’s Unlike many current systems, which payments for e-commerce sites, has digital currency technology also runs on exchange the funds before the merchant integrated with Poynt’s Smart Terminal point point of sale terminals, and will fuel NCR’s receives them, “there won’t be an exchange of sale devices to power in-store payments. plan to support cryptocurrency in both between crypto and fiat pre-purchase,” Consumers use a QR code and BitPay’s digital and physical settings. Vanderham said. blockchain to access cryptocurrency and Merchants who accept cryptocurrency at NCR’s primary rival, Diebold Nixdorf, stablecoins for use at the point of sale. the point of sale usually serve a clientele that is getting ready to run its own pilots with BitPay last week debuted a service that is amenable to the alternative currencies, clients, and expects to have a cryptocurrency allows U.S. users of its prepaid Mastercard to such as a wine shop that serves investment payment product in the market later in 2021, add cards to Google Wallet and use Google bankers and technology executives. But even Manish Choudhary, senior vice president Pay in-app, online and in person using AMC, a large theater chain that expects to of Software for Diebold Nixdorf, said in an Android devices. BitPay has a similar deal serve 200 million consumers this year, has email. with Apple Pay and says support for Samsung announced it will accept bitcoin for tickets Diebold Nixdord’s ATMs can be Pay will be added soon. and concessions at U.S. theaters by the end configured through software and application It’s important to support crypto payments of 2021. AMC has not said how it will accept programming interfaces to connect with a in multiple channels because the option is bitcoin, and did not respond to a request for client’s preferred cryptocurrency exchange used more for online purchases, with the comment. and conduct the purchase or sale of near-term in-store uses likely limited to This new surge of demand came out of cryptocurrencies, Choudhary said. staples, according to BitPay’s research, which bitcoin’s recent and rapid adoption, as well as If NCR and Diebold Nixdorf don’t move found 44% of currency crypto purchases the attention around stablecoins and central fast enough, smaller rivals are ready to take are for gift cards, about 15% for internet bank digital currencies, Vanderham said. their place. purchases, with other purchases such as food Bitcoin has about 130 million current users, To bring crypto acceptance to retailers, consisting of a smaller share. Adding mobile and is on pace to reach one billion in the proponents need to clearly communicate wallets allows for more crypto-friendly next four years, according to research from the benefits of accepting crypto as a form of purchases online while building habits for Nasdaq. By contrast, it took nearly eight years payment and make it easier to integrate crypto more forward-looking payment types. for the internet to expand from 130 million payments, said Sun Choi, vice president “Currently a majority of businesses who users to 1 billion during the 1990s. of business and corporate development accept crypto are online e-commerce sites Thirteen percent of Americans purchased for CoinMe, a Seattle-based decentralized and so support for Google Pay lets crypto or traded cryptocurrency between July financial services company. holders use crypto for everyday purchases 2020 and July 2021, with two-thirds of that CoinMe recently partnered with like gas and groceries,” said Bill Zielke, chief number investing for the first time, according MoneyGram to power a service that converts marketing officer at the Atlanta-based BitPay. to the University of Chicago. The value of digital currency into cash at MoneyGram’s Fiserv, which operates the Clover point-of- cryptocurrency passed $1 trillion early in retail locations. The service will expand to sale system, said it does not currently support 2021 and has been well above that level for international markets later this year, with cryptocurrency payments. Stripe also said it most of the year, going above $2 trillion this MoneyGram and CoinMe hoping to bring does not support crypto payments. Square week. That’s much higher than the $250 bitcoin acceptance to thousands of point of and PayPal, which both derive revenue from

For up to date and complete coverage go to AmericanBanker.com THURSDAY AUGUST 19, 2021 AMERICANBANKER.COM PAGE 7 crypto trading, did not return requests for late May in which its app users were able to comment. CYBERSECURITY see other users’ account information when At Square, bitcoin trading accounts for they logged in. Each time they signed in, they more than 70% of the company’s overall saw a different customer’s account data. The revenue. That windfall has helped Square JPMorgan bank chalked the issue up to a “mobile app to fund new services for Square Cash, a bug.” peer-to-peer payment app that’s served as a Chase warns launching point for many types of consumer- facing services. CONSUMER BANKING “The mass adoption of distributed ledger customers of technology is much closer than people think. ‘Central bank digital currencies’ has been one possible data Personal of the hottest buzz phrases in 2021 and we have already seen several pilots and scaleups finance in Asia, the Caribbean, and elsewhere,” exposure said Nithin Palavalli, CEO of RubiX, a Zug, Switzerland-based company that develops By Penny Crosman fintech Albert technology used to validate transactions in a August 17, 2021 blockchain. JPMorgan Chase says a technical glitch rolls out A decentralized payment system, a may have exposed the personal information strong internet connection and a dedicated of some online and mobile banking smartphone or tablet can directly support customers. checking direct cryptocurrency payments similar to In a notification letter posted on the mobile payments, minimizing or eliminating Montana attorney general’s website, the account the need for software or hardware upgrades company said “a technology issue” may to a point of sale terminal. That can cut costs have mistakenly allowed customers to see By Penny Crosman out of terminal management and processing, other customers’ personal information and August 17, 2021 Palavalli said. “It is possible that we’ll see account information on its website or in the Albert, a Los Angeles fintech that offers a zero transaction cost for cryptocurrency Chase Mobile app, or receive others’ account its 6 million users a budgeting-saving- settlements in the near future.” statements. The company said it found no investing app and personal advice from While cryptocurrency is the “future of indication that customers’ information was its on-staff “geniuses,” has launched a banking,” there are improvements that can used inappropriately. checking account. be made to make merchants and consumers Customers might have seen other Albert Cash, unveiled Tuesday, has no more comfortable, said Shamsh Hadi, CEO customers’ balances and transactions as well minimum balance requirements and no of ZorroSign, a Phoenix-based blockchain as name and account numbers, the company maintenance fees. Customers can get paid technology company. Private permissioned said. a couple of days early and send and receive or public permissioned blockchains can The problem lasted from May 24 to checks. The deposits are held at Sutton ensure trust is enforced in payments and July 14, according to data breach incident Bank in Attica, , which has $1.2 billion government IDs can verify users for “know information posted on the Montana attorney of assets and is a unit of Sutton Bancshares. your customer” compliance, Hadi said. general’s website. JPMorgan has offered The fintech already offers a savings The growth of these two trends can push affected customers a year of free credit account through $2 billion-asset Coastal wider acceptance of mobile apps and crypto monitoring from Experian. Community Bank in Everett, Washington. wallets for direct payments, and improve A JPMorgan spokesman declined a The checking account will make tasks like the authenticity of transactions, which is a request for an interview but referred to the saving and budgeting more seamless for challenge even for digital payments made notification letter on the AG’s website. such users, Albert CEO Yinon Ravid says. with traditional currency, said Hadi. “The “We notified a very limited number of Transfers of funds between accounts will timeline to have these advancements is in customers, including seven in Montana,” he be instant and free, he said. the near horizon based on my discussions said. Albert is joining the rebundling trend and analysis of where the market is going,” The letter did not specify how many people started by fintechs like Digit, Dave, Chime, said Hadi, who predicted there will be a large were affected in total or whether they were in Wealthfront and Moneylion. They start push toward the end of the year with a much multiple states. with one problem-solver, automated larger and wider adoption next year. The company suffered a similar incident savings in Digit’s case, and add on more for about three hours in February 2018. and more features until they look more like Mishaps that allow customers to access a traditional bank — except they’re digital- other customers’ files are typically caused by only. software configuration errors. “What we’re trying to build long-term Klarna Bank in Sweden had an episode in is the ability to be the primary financial

For up to date and complete coverage go to AmericanBanker.com THURSDAY AUGUST 19, 2021 AMERICANBANKER.COM PAGE 8 relationship for our customers,” Ravid said. does as much of the work as possible for where demand is high and a specialized “When people think about any financial the customer.” lender could flourish: small and midsize decision — Should I buy or lease a car? Alongside savings, budgeting and businesses that conduct trade between the Should I pay down debt? Should I save? investing tools, Albert also helps customers U.S. and Mexico. Should I invest? — we want our customers avoid overdrafts by advancing up to $250 As of June 2021, Mexico was the top to come to us. We’ve been building this for from the customer’s next paycheck; this trading partner of the U.S., accounting for five years. In order to truly be that primary feature is also offered by other challenger 14.7% of total U.S. trade. It’s a trend that personal banking relationship, it’s a pretty banks like Chime and Varo. Albert Credijusto co-CEO David Poritz does not natural progression for us to build a bank offers 10% to 20% cash-back rewards at foresee changing. account as well.” major merchants like Whole Foods and “We want to support the rapidly growing The thing that makes Albert stand out McDonald’s. needs for cross-border trade finance,” he from some others is its team of what it calls Albert makes its money through said. “geniuses,” or financial experts that guide subscriptions. Most customers subscribe Traditionally, companies that engage customers through such decisions. The to Genius, which gives them access to the in U.S.-Mexico trade rely on specialized company has certified financial planners, human advisors. Customers are asked to import-export financers or perhaps debt consultants and other experts who pay a monthly fee that they think is fair with universal banks, said Rutger van Faassen, answer questions and help people build a minimum of $4. head of product and market strategy at financial plans. Ravid declined to say Ravid declined to say what the average Curinos, a data and consulting firm for how many geniuses Albert employs. He payment is, but he said it’s not $4. financial institutions. did say the team handles 20,000 text “People pay what they can afford, what “In general, small businesses have been messages a day, seven days a week. Later they value the service,” he said. “Maybe underserved everywhere, around the this year, Albert plans to have its geniuses somebody thinks they’re going to use it world,” van Faassen said. communicate with customers over phone less or they can’t afford $7 a month. The Credijusto plans to establish a presence and video. customer gets to pick.” in the U.S. as well as Mexico so it can lend “Albert has cracked the code on human to businesses with ties to both countries. service with the Genius platform,” said Tom Poritz and Allan Apoj, the company’s co- Brown, a partner at the New York venture COMMERCIAL BANKING founders, first met as undergrads at Brown capital firm Nyca Partners. “If you have a University — Apoj as an international question or issue, Albert connects you with student from Mexico, Poritz as an American a human.” Mexican with an interest in . They Albert’s automated savings is similar both now live in Mexico City and launched to Digit’s: It connects to a bank account, fintech Credijusto in 2015. analyzes an individual’s income, bills “It was apparent to us that there was and spending, and pulls money out of the a unique opportunity to bring together account and into savings when people can expanding institutional capital from the U.S. and afford it. , combine it with a data and “The reality is that if you don’t have into U.S. to technology strategy, and roll that out the money in your checking account, you in markets where there were fewer probably won’t spend it,” Ravid said. “And competitive dynamics,” Poritz said. there’s always a little bit of extra fat in the finance cross- Credijusto serves small to middle- checking account that you don’t really need market businesses in Mexico, extending to spend, but the human condition makes border trade loans between $5,000 and $1.5 million. it tough not to spend that money if it’s in One of its products is an embedded finance front of you. So we try to just hide it for the By Miriam Cross solution where it partners with companies customer and that sort of separation helps August 17, 2021 such as Uber Eats, Microsoft and Oracle people save.” Credijusto made a splash in June when it to make quick decisions on loans to its Albert handles investing automatically became the first fintech to buy a regulated clients. In the Uber Eats case, restaurants the way a robo advisor like Wealthfront bank in Mexico, following in the footsteps that sell on the delivery platform can apply or Betterment would, by asking a few of companies such as LendingClub and for financing and expect fast approvals questions about the user’s goals and risk Social Finance that have bought banks in because of the supplemental information tolerance and putting investable money the United States. provided by Uber. into a basket of exchange-traded funds. But the lender to small and midsize To underwrite its loans, Credijusto “What we’re building is the personal businesses, which compiles troves ingests an array of data about businesses banking experience that a high-net-worth of electronic data to help in credit in Mexico, where regulation has required client has for a mass American consumer,” underwriting, is doing more than companies to digitize all tax information Ravid said. “The way you do that is with the continuing a global trend of fintech- and invoices. Credijusto can pull electronic advice of humans and with software that bank acquisitions. It is catering to a niche invoices tied to its customers that detail

For up to date and complete coverage go to AmericanBanker.com THURSDAY AUGUST 19, 2021 AMERICANBANKER.COM PAGE 9 what, when and where they are buying and U.S., likely in Miami, and is gradually taking rates of suspicious loans were financial- selling. The underwriting technology was on U.S. clients. Although it can’t tap into technology firms, according to the study all developed in-house. the same generous cache of online data released Tuesday by the University of Texas at “This is a powerful tool because we for U.S. businesses as it does to underwrite Austin’s McCombs School of Business. can get direct visibility into the financial Mexican firms, “the fundamentals are the The program, aimed at keeping businesses health of these businesses and overlay same,” said Poritz. “The systems, platform afloat and helping employers hold on to that with bank account information and and technology we built is highly replicable workers during the pandemic, allowed credit bureau data, and create robust regardless of jurisdiction.” lenders to drop some standard underwriting underwriting models,” Poritz said. “In The cross-border element raises the practices in the interest of speed. But that the United States, when people think of challenges of navigating separate banking might have encouraged fraud. The new emerging markets, they probably would systems. report said there could be roughly 1.8 million initially think that the data is poor, but the “That creates a whole other level of questionable loans with a total value of $76 contrary is actually the case.” complexity,” said van Faassen. “That said, billion. Its acquisition of Banco Finterra, a when fintechs focus on one particular “When you have a lot of money going Mexico City-based bank that specializes problem and put a lot of resources on that, out quickly, there’s the potential for fraud in financing for small businesses and they seem to be able to change how things and misconduct,” John Griffin, one of the agriculture, lets Credijusto offer a more g o.” study’s authors and a finance professor at comprehensive product to its customers. There are also reports of Credijusto McCombs, said in an interview. “There are Credijusto, which has combined assets going public later this year by merging with a lot of differences across originators, which of $300 million in U.S. dollars post- former Credit Suisse CEO Tidjane Thiam’s indicates that probably origination practices acquisition, provides checking and savings special purpose acquisition company play a big role in potential misconduct.” accounts, a , and financial Freedom Acquisition I Corp. Poritz In the early stages of the PPP, about 10% management tools, such as insights about declined to comment. of fintech loans had potential indicators of how customers are spending money and Either way, Poritz foresees a bright future fraud such as misreported income or assets. whether any tax filings are on the horizon. for businesses that trade between the two That soared to more than 40% by the end of “Our acquisition reflects a trend that I countries. the program’s third round, according to the think will continue to play out as fintechs “These are trends that go beyond a report by Griffin, Samuel Kruger and Prateek realize that having a bank is a fundamental pandemic,” he said. “The relationship Mahajan. part of their strategy in order to reach the between the U.S. and Latin America is The new research, coupled with other scale they want,” Poritz said. growing.” studies showing that the PPP saved relatively The lender is reaching scale in other few jobs at a high cost, suggest the program ways as well. Its investors include Goldman “seems to have been a poor allocation of Sachs, Credit Suisse, Point72 Ventures, FINTECH capital,” the authors said in the report. New Residential Investment Corp., Kaszek The government has been pursuing cases Ventures, QED Investors and John Mack, of alleged PPP fraud, including charges the former chairman and CEO of Morgan Fintechs brought against a technology executive and Stanley. a former wide receiver for the New York Jets “Small and medium-sized businesses found to professional football team. have historically been one of the most “Anytime you’ve got a government underserved market segments in Mexico, program, particularly one done quickly, and we always felt Credijusto was building be much there’s going to be people that game one of the most compelling technology- the system,” Griffin said. “That’s a huge enabled strategies to address this need,” likelier to OK inefficiency.” Hernan Kazah, co-founder of Kaszek The study examined features on Ventures, wrote in an email. Kaszek invests more than 10 million PPP loans, looking in technology companies in Latin America. suspicious for potential red flags that could be gleaned Credijusto has raised more than $400 from publicly available information. Among million in equity and debt, with 95% of the PPP loans the warning signs: unregistered businesses, capital coming from the U.S. It was the first multiple loans at a single residential address, fintech investment that Goldman Sachs By abnormally high implied compensation and Point72 made in Mexico. August 17, 2021 relative to industry norms and large “From the very beginning we had close Fintechs were almost five times more inconsistencies between the jobs a borrower linkages to the U.S.,” Poritz said. likely than traditional lenders to be involved reported on a PPP application when Those linkages will grow as the company with suspicious loans issued through the U.S. compared with other government paperwork rolls out financing for U.S.-based businesses government’s Paycheck Protection Program, filed by the same person. that trade south of the border. according to a new study. The study found that three of the largest Credijusto plans to open an office in the Nine of the 10 lenders with the highest fintechs involved in the PPP effort — Cross

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River Bank, Capital Plus Financial and credit, compliance, business security and Harvest Small Business Finance — C-SUITE enterprisewide risk, in the United States, each generated more than $900 million in Latin America and Canada. processing fees while also being responsible for loans that had high rates of misreporting. MUFG taps Adam Seery, chief operating officer at CREDIT UNIONS Harvest, said the company “had systems in veteran place to monitor and catch fraud through the PPP program.” Seery said he couldn’t Big credit comment further until he had seen the report, banker to lead but he also took issue with the categorization unions extend of Harvest as a financial-technology risk in the company. He said Harvest considers itself a “non-bank lender.” help to small A Cross River spokesperson said its Americas fraud-detection standards “far exceeded” peers — but government requirements. By not limiting By Laura Alix its program to existing customers or by August 17, 2021 minimum size, the lender served almost half Mitsubishi UFJ Financial Group has hired there are trust a million businesses. That “helped save more as its top U.S.-based risk officer an industry than 1.4 million American jobs,” according to veteran who has held top roles at Ally issues the bank’s emailed statement. Financial and Santander Holdings USA. In response to the study, Capital Plus sent On Sept. 13, Brian Gunn will become chief By Frank Gargano a letter to the University of Texas at Austin risk officer for MUFG Americas Holdings, as August 17, 2021 President Jay Hartzell, saying that the firm well as its subsidiary MUFG Union Bank, the Credit unions with assets of $100 million believes the study included proposed loans company said Tuesday. He will be based in or less don’t necessarily have the resources that were never made. Capital Plus ended up New York and will report primarily to Kevin to properly invest in marketing, technology declining more than 20% of the loans that are Cronin, president and CEO of the holding and other needs. For these small institutions marked as approved or funded on the Small company and subsidiary bank. to grow, mentorship from a larger peer can Business Administration’s website and has Gunn will succeed Donna Dellosso, who be a valuable resource — but only to the been working to update the data, according is retiring. extent that the organizations are able to trust to a letter from Chief Executive Officer Eric “After a rigorous executive search that one another. Donnelly. The firm expects that information included a diverse and highly qualified slate Mentorship is not an uncommon to be revised by the end of August. of candidates, Brian stood out given his practice, at least in the banking world. This Not all the fintechs involved in the PPP extensive experience working in structurally year saw a surge in similar partnerships program can be lumped together in the same complex organizations and highly regulated among banks of all asset sizes. In 2018, the category. Square Inc. and Intuit Inc. were environments, as well as his vast knowledge Treasury Department created a Financial among lenders with the lowest suspicious- of the material risk disciplines,” Cronin Agent Mentor-Protégé program where large loan rates, according to the report.“ said in a press release. “We look forward financial institutions could partner with both Those fintech originators have been to a seamless transition as Brian works minority/women-owned banks and smaller around a while. They have a reputation. They closely with Donna to ensure that our risk institutions to mentor them and assist have procedures,” Griffin said. “Even though management function continues to support with growth and development. One such these findings, the misreported loans, tend our future growth.” mentorship is between JPMorgan Chase to concentrate in fintech, it may also be a Most recently, Gunn worked for the and the $338 million-asset Harbor Bank of function more of the stability of the business. consulting firm Oliver Wyman as a senior Maryland. Chase provides its experts to aid So these larger fintech companies that have advisor to institutional clients in the Harbor Bank’s growth in varying sectors, been around seem to have good standards banking industry. Before that, he worked and in turn Harbor shares successful tactics and procedures in place.” for four years as the chief risk officer at the for serving low-income communities. Boston-based U.S. arm of Madrid’s Banco The Credit Union National Association Santander. He was also previously chief is working to foster similar relationships, risk officer of Ally Financial and GE Money but smaller credit unions are sometimes Canada, a GE Capital subsidiary. deterred by the fear that a would-be mentor In his latest role, Gunn will serve on may be sizing them up for a merger. MUFG’s executive committee for the “I’ll hear from the small credit unions Americas as a policymaking officer. He themselves that they don’t want to partner will also be responsible for strategic or collaborate, because they’re worried the direction of risk management, including large credit unions are just trying to merge

For up to date and complete coverage go to AmericanBanker.com THURSDAY AUGUST 19, 2021 AMERICANBANKER.COM PAGE 11 them,” said Peter Duffy, a managing director facilitate the mentorships between the small Awareness, a unit of CUNA, said in a press at Piper Sandler who has worked with credit and large credit unions and assuage doubts release Monday. “Thank you to our newest unions on mergers and acquisitions for from either institution. contributors in Atlanta, and the League of more than a decade. “The large ones are “If we could formalize something, I Southeastern Credit Unions, for helping to saying, We’d like to help those guys out, but think that we would have active and willing open consumers’ eyes to the credit union they think we’re just trying to buy them.” participants on both sides,” Sakash said. difference.” The concerns surrounding these“What I hear more now, is that small credit The initiative, which started in early 2019, partnerships are substantial, but so are the unions want to collaborate with the larger utilizes a digital-first, targeted campaign problems these credit unions are facing, credit unions. CUNA has the ability to to inform consumers about the benefits Duffy said. moderate this and ensure that whatever of joining a credit union and to dispel the If these small institutions hope to not relationships occur are done for the right misconceptions surrounding membership only retain members, but recruit new reasons.” eligibility and access to their accounts. ones as well, the demand to upgrade core Sakash emphasized that collaboration “We are excited that credit unions in the technologies and provide a larger suite of has benefits for credit unions of all asset Atlanta region are now part of the continued services is at the top of the list. sizes. expansion of Credit Union Awareness,” Jared “For our membership, we saw the need “Smaller credit unions are able to Ross, president of the League of Southeastern that we were going to need to be more innovate new products and be pretty Credit Unions, said in the release. “The digitally present,” said Karen Montgomery, nimble when it comes to creating services launch of the paid digital campaign will no CEO of the $23 million-asset Union Fidelity and serving members, and we see larger doubt raise consumer consideration so that Federal Credit Union in Houston. “So we credit unions learning from those things over time we build market share.” began to offer features such as remote that smaller institutions are able to do,” The six institutions supporting the capture, Zelle and we offer bill pay now.” Sakash said. “It really strengthens the whole campaign are Atlanta Postal Credit Union, Montgomery is a member of CUNA’s Small movement, when we can bring credit unions which has $2.5 billion of assets; Credit Union Credit Union Committee, which recently together and have them share ideas to serve of , which has $532 million of assets; published a white paper highlighting the members in new and innovative ways.” Coca-Cola Federal Credit Union, which has main issues plaguing small credit unions $223 million of assets; Delta Community and proposed strategies such as mentoring Credit Union, which has $8.6 billion of assets; from larger institutions. CREDIT UNIONS Georgia’s Own Credit Union, which has $3.2 “We talked about the importance of billion of assets; and LGE Community Credit cross-industry collaboration, whether that’s Union, which has $1.9 billion of assets. between small credit unions or among credit Credit union unions of all asset sizes, and the committee came back to the idea time and again that awareness VENTURE FUNDING collaboration is the way to solve a lot of these problems,” said Tom Sakash, manager of Small Credit Union Initiatives at CUNA campaign Plaid and one of the authors of the white paper. Dale Hansard, CEO of the $38 million- gains support stockpiles asset Caprock Federal Credit Union based in Lamesa, Texas, and chair of the committee, is himself engaged in one such partnership. in Georgia funding with Through working with a larger organization, Hansard says he’s given a unique perspective By Frank Gargano investments on what the future may hold for Caprock August 16, 2021 FCU and similar institutions. The Credit Union National Association “We’re an evolving small credit union, has added six new credit union partners by JPMorgan, and we are growing,” Hansard said. “If we to the Credit Union Awareness Initiative, can get some real like-minded CEOs in the which provides education on eligibility American industry to work with our people, it expands requirements and other details to potential their perspective and in turn allows them to members. help me see where the horizon is.” With the inclusion of these new Express But because smaller institutions can be contributors, Georgia becomes the 27th state suspicious of the motives of their mentors to host the initiative, CUNA said. By David Heun — even if they acknowledge the need for “I’m excited to see this momentum August 17, 2021 collaboration — such partnerships are continue to grow nationwide with the The data aggregator Plaid has received an few. CUNA and the Small Credit Union help of Atlanta credit unions,” Chris undisclosed amount of additional funding Committee are looking to step in and help Lorence, executive director of Credit Union from JPMorgan Private Capital Growth

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Equity Partners and existing investor Amex the $425 million funding round involving Ventures. Altimeter Capital and new investors Silver The investments add to a $425 million Lake and Ribbit Capital. Series D round that Plaid announced in Goldman Sachs, Citi Ventures, Visa and April. Plaid’s $13.8 billion valuation remains Mastercard also continue to be investors in unchanged as it prepares to work with more Plaid. banks, according to a source close to the “As we look to support the massive company. growth in fintech, we’ll be accelerating our New York-based JPMorgan Private Capital investments in building products that enable Equity Partners was established two months an open, easy to use, and secure financial ago as part of JPMorgan Asset Management, services ecosystem,” Perret said. “While an investment arm of JPMorgan Chase. we’re still in the early innings of the digital Amex Ventures, the venture capital unit of transformation in financial services, we’re American Express, has been in operation excited to work with the thousands of banks, since 2011 and has invested in more than 70 fintechs and non-financial institutions in our technology startups. network to create what’s next.” q “Both J.P. Morgan’s Growth Equity Partners and American Express will be critical in our © 2021 Arizent and American Banker. effort to enable great financial outcomes All rights reserved. for consumers and drive innovation in the industry,” Zach Perret, co-founder and CEO of Plaid, said in a blog post about the additional funding. “These are storied companies intrinsic to the fabric of financial services, and are important partners.” For Amex Ventures, the extra funding marked a continuation of support it first provided as an investor in Plaid’s Series B funding round, when “it was clear they were the financial data partner of choice for developers,” said Lindsay Fitzgerald, managing director of Amex Ventures. Amex Ventures and Citi Ventures, New York-based ’s venture capital group, were part of an extension of a $44 million Series B round led by Goldman Sachs Investment Partners. “Since then, Plaid has become essential fintech infrastructure, propelling a new generation of applications to market faster,” Fitzgerald noted. “We are thrilled to once again support Plaid’s growth, as they continue to innovate and power a better consumer experience in financial services.” The funding announced Tuesday continues momentum for Plaid, which opened 2021 with the termination of a planned merger with Visa, about a year after the card network announced a $5.3 billion deal to acquire the data aggregator that quickly came under Department of Justice scrutiny. Visa lawyers defended the merger against DOJ concerns about potential antitrust violations, but both companies ultimately decided to shelve the merger plans. Plaid hit its $13.4 billion valuation not long after the Visa plans were scrapped, aided by

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