Fintech Focus For November 10, 2021

Quote To Start The Day: “It is during our darkest moments that we must focus to see the light.”

Source: Aristotle

One Big Thing In Fintech: An age-old concern in banking revolves around the risk of non-repayment.

Banks would have billions, at times, in loans to entities — everything from governments to businesses — and, given regulatory frameworks, they would be obliged to hold collateral in case of default.

In 1994, Blythe Masters of JPMorgan Chase & Co’s JPM swaps team, pitched the idea of selling credit risk in return for fees. This meant that the bank would offload the risk of repayment in exchange for a fee. The entity that would then warehouse this risk would receive regular payments, freeing up capital for the bank, as a result.

The scheme was named the credit default swap, or CDS.

In light of the CDS market’s stabilization and growth, after the 2008 Financial Crisis, Benzinga spoke with DelphX Capital Markets’ DPXCF Patrick Wood on his firm’s intent to move the market into a new age.

Source: Benzinga

Other Key Fintech Developments:

• Citi opens an immersive branch. C
• AFIN announces fintech registry.
• Tinkoff added ex-MS executive.
• Rapyd has added B2B offerings.
• US Bank updating eBill product. USB
• Fin VC secures $400M funding.
• Circle’s CEO on fintech, crypto.
• ACI integrates with Mastercard.
• Alter Domus, Canoe teaming up.
• Ripple adds new crypto services.
• Paytm’s IPO is subscribed 48%.
• Ontology’s Wing live on Binance.
• DTCC to apply cloud, API, DLT.
• Netcapital purchased ValuCorp.
• BNY launches ISO 20022 hub. BK
• Nexo acquires stake in Texture.
• Vint raises $1.7M in a pre-seed.
• Wilshire, Rayliant collab on offer.
• Huobi to relocate its spot-trading.
• Socure secures $450M Series E.
• Cadenza raises $50M for crypto.
• SGX to add a new data offering.
• Bitmart to raise $20M in funding.
• Republic acquires Arora Project.
• Jackpocket added $120M round.
• Notabene adds $10M in funding.
• Zeta announces financial results.
• Finicity and LoanPro partner up.
• Airbase intros new free offering.
• Robinhood suffers security hack. HOOD
• Novi becomes Facebook fintech. FB

Watch Out For This: Underbanked.

This term has been said, loosely, for far too long. There are millions in modern civilization with no access to financial services. A lack of trust and understanding are among the top factors to blame for this problem.

David Dwumah, a serial entrepreneur and ex-public and -private financial services expert with experience working at the likes of Citizens Financial Group Inc CFG and the Federal Reserve, founded OurBanc, a member of the Council for Inclusive Capitalism, to extend digital banking to those without access.

Read below to learn more about Dwumah’s mission.

Source: Benzinga

Interesting Reads:

• ZenBusiness has added funding.
• Tesla erases $199B in two days. TSLA
• Twitter subscription offer now live. TWTR
• TikTok looks to move into games.
• Biden hones in on supply chains.

Market Moving Headline: While eurodollar futures and options are pricing in numerous quarter-point increases in 2022 and 2023, they’re pricing in just one after that, underscoring expectations for a relatively short and slight tightening cycle.

Source: Bloomberg