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Hi dear reader,

This week we bring you news about some quite interesting companies and happenings, starting with Yolt which was backed by ING, is closing. Wise, is finned $360K by Abu Dhabi regulator, Klarna records big losses, and more take a look...

ING decides to close Yolt

Less than a year after shutting down its consumer-facing smart money app, Yolt backed by ING is set to close completely, shutting its B2B open banking operations.

In the context of the rapidly evolving and changing market, ING has concluded that it is not feasible to achieve its ambitions with Yolt (formerly Yolt Technology Services).

Yolt B2B Open Banking operations were launched in 2019 and the company reportedly was the first to make an Open Banking API call in the UK. It made the latest Open Banking technology available to businesses across Europe.

Oxbury raises £25 million in Tier 2 capital funding

Agtech bank Oxbury has recently secured £25 million in Tier 2 capital funding from British Business Bank subsidiary British Business Investment. The capital funding was received as it forecasts to reach breakeven by the end of the year. This round follows a £20 million funding round last month and brings total capital raised to £93 million since inception in January 2020. Read more here.

The funding will enable Oxbury Bank to support additional lending of £250m to small and medium British businesses across the remainder of 2022 and through 2023. Calling itself the UK's only AgTech bank, Oxbury has £650 million of lending completed or in progress in the 16 months since going live, with a target of £1 billion set for 2024. 


Source : C-innovation

  Learn more about Green Finance in our blog post.

Wise fined $360,000 by Abu Dhabi regulator

Wise, the money transfer firm, has been hit with a $360,000 fine by Abud Dhabi's financial regulator for contravening anti-money laundering rules. The Financial Services Regulatory Authority (FSRA) found that Wise was not able to establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations.

In particular, Wise failed to identify and verify the source of funds and wealth from a number of high risk customers and only began carrying out checks above a high value payment threshold after it had already established a business relationship with those customers. Wise also failed to consider nationality or business category as part of its risk-based assessment and due diligence checks.

Wise did not dispute the FSRA’s findings and agreed to settle at the earliest opportunity, which meant that it qualified for a discount of 20% on the financial penalty. Otherwise, the FSRA would have imposed a financial penalty of $450,000.


Learn more about Wise in our deep-dive.

SumUp introduces new digital wallet SumUp Pay
London-based unicorn SumUp is expanding into the B2C payments space through the launch of a digital wallet with integrated loyalty scheme. The SumUp Pay app includes a virtual Mastercard-which can be topped up using a saved card or via bank transfer - allowing users to make remote or in-person purchases enabled by Google Pay and Apple Pay, transfers and withdrawals.
The app has an integrated loyalty scheme focused on supporting local businesses. Points are earned on all transactions and can then be redeemed at any local business collecting payments with SumUp. Other features include QR code-based payments and the ability to send and request money from friends.
The free app is now available in the UK, Germany and Italy via Apple’s App Store and the Google Play Store, with new customers entitled to receive a £10 points bonus.

Klarna losses more than triple as cost rises

Swedish Fintech Klarna saw its net losses nearly quadruple in the first half of 2022 on higher credit defaults, increased employee costs and investment in market expansion.

First half revenue was $950 million, up 24% on H1 2021, driven largely by growth in the US. However, net losses for the period were $581million, compared to $141 million the previous year.

The firm says the losses were caused by rising defaults on borrowing and the cost of integrating recently acquired price comparison site PriceRunner. Employee costs also rose. In May, the company said it would cut 10% of staff but the effect of this has not yet been seen.

Klarna rode the BNPL wave during the pandemic, hitting a $46 billion valuation last summer, before crashing down this year, forced to raise funds at huge discount.


Source : C-innovation

Learn more about Klarna in our blog post, and related you can read more about the rise and fall of digital disruption.


UBS and Wealthfront mutually agreed to terminate merger

UBS Group scrapped its planned $1.4bn purchase of Wealthfront on 2 September, in a setback to the Swiss bank’s plans to grow in the US in online wealth advice.

UBS, struck the deal in January before technology company valuations plummeted in a market selloff. Bank executives billed it as a way to reach younger investors who prefer to manage their money through online applications instead of sitting down with an adviser. They said UBS could tap into Wealthfront’s user-friendly technology to build other digital services, amid an arms race for money managers and banks to improve customer experiences.

California-based Wealthfront at the time said it had about $27bn under management for around 470,000 clients. UBS overall manages around $2.8tn in assets, mainly via thousands of advisers and relationship managers across the world.

UBS and Wealthfront said they made the decision together but didn’t give any reason. The companies said UBS instead will invest $69.7m into notes that can be converted into Wealthfront shares, at the same $1.4bn valuation as the deal they announced in January.

Source: C-innovation


Read more about private bankers' strategy in our blog post.


The C-Innovation Team

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Starling Bank: Money-making In Digital Banking

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