Nubank Exceeds 100 Million Customer Mark Nubank has surpassed 100 million customers, stating that it is the first digital banking platform outside of Asia to reach this customer milestone. Nubank serves 92 million customers in Brazil, over 7 million in Mexico, and close to 1 million in Colombia. In 2023, Nubank achieved record financial results, reaching more than $1 billion in net profit and over $8 billion in revenue. Brazilian challenger bank Nubank announced this week it has surpassed 100 million customers across Latin America. The fintech estimates it is the first digital banking platform outside of Asia to reach this customer milestone. Nubank is currently active in three countries, serving 92 million customers in Brazil, over 7 million in Mexico, and close to 1 million in Colombia. The company has a mission of “fighting complexity to empower people,” offering users a digital bank account, credit card, mobile phone insurance, life insurance, personal loans, and investing tools. The company launched business accounts in 2019 to offer small business users a bank account, credit card, and a phone-based payment acceptance app. “In 2013, we had set ourselves the ambitious goal to reach one million customers in five years, which seemed almost impossible at the time,” said Nubank Founder and CEO David Vélez. “In a decade, we have surpassed 100 million, which is a testament to the trust our customers place in us and to the power of a truly customer-centric business model. These 100 million customers have written their stories together with ours, and we want to honor them in a special way.” Since its inception, Nubank has been instrumental in helping its customers save more than 440 million hours of waiting in service queues. Additionally, the company estimated that it helped users save 11 billion dollars in banking fees in 2023. Perhaps more notable than savings consumers on fees and their time waiting in line, Nubank has also been instrumental in promoting financial inclusion in Brazil, a region notorious for its high rate of unbanked adults. Between July 2021 and July 2022, Nubank added 5.7 million credit cardholders to the country’s credit card market. In a survey it conducted of accountholders from 2021, Nubank found that 60% of Brazilian customers improved their financial journey in the first 24 months, citing frequent and responsible use of credit cards and other financial products. “Being customer-centric has been guiding us since the very beginning,”said Nubank Co-founder and Chief Growth Officer Cristina Junqueira. “Today, we want our customers to see themselves the way we see them: at the center of everything. In reaching this milestone, we want to focus on the real people and individual stories of empowerment and advance our mission to help improve people’s lives.” From a U.S. perspective, Nubank’s customer number is not the only impressive metric surrounding the fintech. The company closed last year with record financial...
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Portfolio company Current has launched a secured credit card called 'Build.' Congratulations Stuart Sopp and Trevor Marshall and the entire Current team! "In July, Current did a soft launch of a new product, the Build card. Build is a new take on the secured credit card concept. Typically, to use a secured card the consumer has to establish a deposit account that serves as collateral for the credit line associated with the card. Build uses funds that the customer has on deposit in their Current banking account, either one they already have or a new account if they haven’t banked with the fintech before. Balances are not carried over from month to month, making it effectively more of a charge card. The deposit balance retires the total amount charged on the card each month. But spending on the Build card is reported as a credit card transaction, helping people to establish a credit history with a record of on-time payments. (Current reports to one of the three leading credit bureaus, TransUnion.) The intent behind the Build card is to increase cardholders’ credit scores and enable them to move on to other forms of consumer credit. In addition to allowing them to access credit, the higher scores also will make credit cheaper for them. Current has been “sifting for gold” in the sub-600 FICO credit score area, while traditional banks typically don’t delve below 620, says Sopp. “I know from talking to some of our competitors that everyone has a similar roadmap, which is to nail down the banking side — which we’ve done — and then start to build,” he says. In Current’s bid to get out of the red, it has several factors already working in its favor. Sopp says that many of its 4.5 million accounts are profitable on a standalone basis. Current also has started its own processing operation to deal directly with Visa — rather than going through an outside processor — which saves it some money. Current began with a teen banking product and expanded into personal banking accounts a couple of years later. Its revenue comes chiefly from credit and debit card interchange at present. The features that have been its selling points include early access to direct deposits, fee-free overdrafts and 4% APY on up to $6,000 in deposits (subject to certain other requirements) — all of which have become table stakes for fintechs serving consumers. Current began developing Build in late 2022 and a full marketing launch started in August. The company is targeting existing customers to get them to switch their accounts to a linked Build account instead. It is also seeking fresh signups from noncustomers. The focus is largely on conversions right now, but once more customers adopt Build, Sopp expects to see a 50/50 split in the marketing mix. (He says the level of conversions so far is “amazing,” but gave no detail.) #fintech #credit #building https://lnkd.in/dGvp_ard
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Global Head - Payments Specialist, Blockchain Architect, Open Protocols, Build Open Platform, Digital Banking, Open Headless Commerce, Payment Gateway, Open Banking, Wallets - Expert in Digital Transformation & Payments
🚀 Innovations in Issuing are Transforming Payment Acceptance! 💳💡 In the world of finance, innovation and technology are driving progress like never before and I explore this in my new article. Recent years have witnessed remarkable changes in payment systems, largely fueled by technological advancements. One standout example of this innovation is the Issuing Debit Prepaid Card Control System, which is revolutionizing the financial sector. 🔥💳💻 I innovations are reshaping card control systems: 💫 Instant Card Activation: Debit and prepaid card issuance now offers instant activation, providing quicker access to funds. 📱 Mobile Integration: Mobile apps play a pivotal role, offering real-time control over cards, transaction monitoring, and enhanced security. 🤖 Adaptive Authentication: AI and machine learning continuously assess user behavior for real-time risk assessment and security adjustments. 📊 Tunable Cards: Users have precise control, instantly deactivating/reactivating cards, setting spending limits, and specifying transaction categories. 💼 Seamless Integration through REST APIs has ushered in a new era of functionality and flexibility, making financial services more efficient and accessible. 🔄💼💻 Key innovations in Issuing Debit Prepaid Card Control System include biometric authentication, virtual cards for secure online payments, real-time fraud prevention powered by AI, and the influence of Open Banking for personalized services. 🤳🔐 Regional innovations around the world cater to unique needs: 🌍 Africa: Mobile money providers integrate with prepaid cards for financial access. 🌏 Asia: Microfinance institutions use prepaid cards for financial inclusion. 🌎 Latin America: Prepaid cards facilitate cross-border remittances. 🇺🇸 USA: Partnerships like Fiser and Central Payments empower fintechs and enterprises to launch innovative financial products and services. FSS's latest launch, BLAZE, is a cutting-edge payment technology platform that can handle over 5,000 transactions per second, making it a game-changer in the payments landscape. 🔥💼💳 💬 So, how are banks in the US and Canada like RBC, Scotiabank, Bank of America, BMO, Bmo Bank of Montreal, Wells Fargo, Canadian Western Bank, Citi, Morgan Stanley, Capital One, Axos Bank, Santander, Ally Financial Service LLC, KeyBank, DISCOVER BANK, Laurentian Bank, Tangerine, TD, PNC bank amongst others adapting to the innovations in merchant payments? Share your thoughts in the comments If you want to shape the future of merchant payments and explore how our solutions can benefit your business in the MENA Region, we'd love to connect! Send Shalav Gupta, our Regional Sales Head for the US & Canada a message on LinkedIn or contact him via email at shalavgupta@fsstech.com. https://lnkd.in/d6VbQmKD
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As consumers opt to use technology and easier ways to pay, business owners must continually be ready to embrace and adjust based on consumer demand! How is your bank guiding you as a business owner! PNC is the future of payments while advocating for their clients!
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Bankjoy Teams Up with Account Activation Specialist Pinwheel Bankjoy, a digital banking provider for banks and credit unions, announced a partnership with Pinwheel this week. Bankjoy will help its more than 70 bank and credit union customers integrate Pinwheel’s digital deposit switching (DDS) solution, Pinwheel Prime. Pinwheel Prime has been credited with increasing direct deposit enrollment by 32%. Digital banking provider Bankjoy has partnered with Pinwheel to help financial institutions remove friction from the account activation process. Via the partnership, Bankjoy will enable its 70+ bank and credit union customers to integrate Pinwheel’s digital deposit switching (DDS) solution, Pinwheel Prime. Pinwheel Prime offers a two-click deposit switch that enables customers to set up their direct deposit in seconds rather than dealing with a multi-step process that requires customers to exit the banking experience. “By seamlessly integrating from Bankjoy online account opening through various tightly-knit third-party integrations like Pinwheel, we can equip our clients to excel in the competitive deposit market,” Bankjoy COO Weiwei Duncan said. “Our goal is clear: to ensure that our clients not only compete but win the deposit war, leveraging technology to streamline processes and enhance user engagement.” According to research from Pinwheel, solutions that make deposit switching faster and easier can significantly impact deposit growth. Pinwheel’s own deposit switching technology can enable FIs to boost direct deposit enrollment by 32%, and reduce the amount of time before a customer makes their first direct deposit by 65%. “With this collaboration, we can bring the ability to easily switch direct deposit settings to an even wider set of consumers, facilitating a fairer financial systems with greater choice and portability,” Pinwheel Co-founder and CEO Kurtis Lin said. Headquartered in New York and founded in 2018, Pinwheel began the year teaming up with Finovate alum Jack Henry to imbed its direct deposit switching (DDS) solution into Jack Henry’s Banno Digital Toolkit. Pinwheel has raised $77 million in funding according to Crunchbase, and includes Indeed and Franklin Templeton among its investors. A Finovate alum since 2016 , Bankjoy most recently demoed its technology at FinovateFall last year. At the conference, the company, in partnership with Panacea Financial, showing how the fintech helped the digital neobank provide financial services to medical professionals. So far this year, Bankjoy has added two new financial institutions to its customer base: Oregon State Credit Union, which teamed up with Bankjoy in February, and Emporia State Federal Credit Union, which partnered with Bankjoy in March. Oregon State CU ($2+ billion in assets; 142,000+ members) will deploy Bankjoy’s online account opening solution as part of its strategy to fuel new member acquisition and grow deposits. Emporia State FCU, headquartered in ...
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Digital payment platforms are the key to mass adoption of digital payments where a merchant and their consumer are the only participants in the payment process.
From digital to invisible When banking cards became popular in the midtwentieth century, there were concerns that the dematerialization of finances could result in careless spending. Some would argue this is exactly what happened, with credit cards linked to overspending when compared to cash purchases. Skip forward fifty years and, due in part to the pandemic, cash has finally entered its death spiral, with cashless societies growing in number and consumers of all ages forgoing paper money in favor of digital payments. A result is that those old mid-century fears are rearing up again in a new form. If banking is invisible, do consumers risk losing control of their money? A growing percentage of younger U.S. consumers, including 31% of millennials, have their primary checking account with a digital bank such as Cash App, Chime and PayPal. In one survey, 77% of millennials and 66% of consumers said they were considering switching to a digital-only bank, citing convenience as the primary motivator. But even with data portability becoming easier, the percentage who do switch banks each year currently tends to run on the low side, at around 4% of consumers. Instead of switching, consumers are opening more accounts and are engaged with a greater variety of providers. We don’t just have one bank account anymore. Arguably, the previously established significance of the primary current account is diminishing. With a trend towards complexity, a new question surfaces: how can a bank increase wallet share? We’re seeing challenger fintechs, such as Clearpay and Klarna, offering innovative spending options with less friction in the form of buy now, pay later (BNPL), which consumers are welcoming with open arms. In 2022, an estimated 360 million people worldwide used BNPL, a figure that’s predicted to rise to 900 million by 2027. There are signs that BNPL providers will evolve from financing individual purchases to supporting lines of credit, essentially emerging as an entry-level offering for credit cards. While some banks are pivoting to offer BNPL services, traditional banks are typically too slow and complex to play in the fast-changing space BNPL represents. Undoubtedly, the ease-of-use that seamlessness and invisibility promise is cause for excitement, but there’s a risky edge to invisible finance that must be attended to. This new face of financial services is surfacing amid a backdrop of inflation, a looming recession and a cost-of-living crisis. 73% of Gen Z say that the current economic environment has made it challenging to save. Would increasingly abstracted spending mean consumers will further lose control of their finances? Source Frog #banking #fintech #embeddedfinance
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From digital to invisible When banking cards became popular in the midtwentieth century, there were concerns that the dematerialization of finances could result in careless spending. Some would argue this is exactly what happened, with credit cards linked to overspending when compared to cash purchases. Skip forward fifty years and, due in part to the pandemic, cash has finally entered its death spiral, with cashless societies growing in number and consumers of all ages forgoing paper money in favor of digital payments. A result is that those old mid-century fears are rearing up again in a new form. If banking is invisible, do consumers risk losing control of their money? A growing percentage of younger U.S. consumers, including 31% of millennials, have their primary checking account with a digital bank such as Cash App, Chime and PayPal. In one survey, 77% of millennials and 66% of consumers said they were considering switching to a digital-only bank, citing convenience as the primary motivator. But even with data portability becoming easier, the percentage who do switch banks each year currently tends to run on the low side, at around 4% of consumers. Instead of switching, consumers are opening more accounts and are engaged with a greater variety of providers. We don’t just have one bank account anymore. Arguably, the previously established significance of the primary current account is diminishing. With a trend towards complexity, a new question surfaces: how can a bank increase wallet share? We’re seeing challenger fintechs, such as Clearpay and Klarna, offering innovative spending options with less friction in the form of buy now, pay later (BNPL), which consumers are welcoming with open arms. In 2022, an estimated 360 million people worldwide used BNPL, a figure that’s predicted to rise to 900 million by 2027. There are signs that BNPL providers will evolve from financing individual purchases to supporting lines of credit, essentially emerging as an entry-level offering for credit cards. While some banks are pivoting to offer BNPL services, traditional banks are typically too slow and complex to play in the fast-changing space BNPL represents. Undoubtedly, the ease-of-use that seamlessness and invisibility promise is cause for excitement, but there’s a risky edge to invisible finance that must be attended to. This new face of financial services is surfacing amid a backdrop of inflation, a looming recession and a cost-of-living crisis. 73% of Gen Z say that the current economic environment has made it challenging to save. Would increasingly abstracted spending mean consumers will further lose control of their finances? Source Frog #banking #fintech #embeddedfinance
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Each year we test the waters with customers in our Digital Banking Attitudes study and again this year, the response is overwhelming that customers are diving head first into using banking apps for much more than transactions. We all use our phones more often than we’d like to admit, but we’ve seen usage of banking apps climb and climb in recent years, including for more than just transactions. Many of our 54 million mobile users come to the Chase app for the convenience of depositing checks, sending money and taking care of everyday financial needs. But we are also seeing more engagement with tools that help them plan and prepare: like budgeting, saving or monitoring their credit. A newer feature, Score Planner, allows customers to monitor their credit score and plan a path to improving their scores, too. We’re also launching more features that help with personal finances. 62% of customers feel they cannot live without their banking app, 78% are using it weekly and nearly nine in 10 people say they prefer to use one app to manage everything from paying an auto loan to booking travel. Digital payments are growing – 64% said they are sending and receiving money to family and friends on their banking app rather instead of giving cash. We’re making the effort to build and launch tools and features that help our customers reach their financial goals and get the most value from their app. It’s great to see the engagement! Check out the key takeaways from this study and let me know what the highlights were for you. #bankingtrends #product #fintech
Consumers Use Banking Apps for Much More than Transactions
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Co-Founder & CEO, FLS INDIA PVT LTD Building Fintech Seasoned professional with expertise in Mortgage, Insurance & Wealth Advisory. Ex - MyMoneyMantra, Andromeda, HSBC, ING, Max Life, Kotak & Reliance.
HDFC Bank, India’s largest private lender, plans to launch a revamped mobile app and an internet banking website by March, over five years after an upgraded app faced glitches and had to be rolled back in a week. SOURCE - THE MINT The bank will start a closed user group trial by December and then roll it out to other users by the end of March, Anjani Rathor, chief digital officer of the bank, said in an interview. “We have taken feedback from customers. It will be a lot more intuitive and simpler to use," said Rathor, who joined the bank in February 2020 after 12 years at Bharti Airtel. After facing technology troubles in 2018 and 2019, the Reserve Bank of India (RBI) in December 2020 curbed fresh digital launches and ordered it to halt issuing new credit cards. These were finally lifted in March 2022, allowing the bank to roll out products under its ‘Digital 2.0’ plan. In the last few years, Rathor said, the bank has changed the way it looked at its digital offerings, taking control of them through in-house developments instead of solely relying on external partners. Since 2020-21, the bank has added 1,400 people in core technology roles, with the team strength now at about 3,100. A large part of the new app and internet banking website has been developed in-house, although it uses components from partners as well. The bank has changed the tech development model with internal full-stack developers building digital products, said Rathor. “They are all technologists folding their sleeves and writing codes. They are full-stack developers, database administrators, among others," Rathor said. As part of the Digital 2.0 initiative, the bank has also revamped its customer service gateways like WhatsApp banking and call centres. According to Rathor, the bank has compiled the reasons why a customer wants to reach out and enabled it on chat, allowing people to undertake over 200 types of transactions on WhatsApp. It has about 10 million customers registered on WhatsApp banking. HDFC Bank’s customer base stood at 85 million as of 30 June. He said that similarly, when a customer calls the revamped call centre, there is an AI (artificial intelligence)-driven bot which responds, the same WhatsApp bot that speaks in one’s preferred language. The call centre bot can also solve 200 simple transactions. “For other complex transactions, a customer has to press a few buttons (interactive voice response or IVR). If these two stages are unable to solve it, the customer’s call goes to an agent," said Rathor, adding that since incoming calls are now being digitally deflected by a bot and an IVR, just the residual ones go to agents. This, he said, is going to aid the bank in offering customer care at scale 24/7, even when the volumes keep going up. “Now, the bots are also going to become smarter, and since I know why an agent has to step in, I could enable the bot to respond to that," Rathor said.
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Wi-Fi For Banking, Financial Services, Insurance (BFSI) In an era where digital transformation is reshaping industries, the banking sector stands at the forefront of innovation. The fusion of technology and financial services is revolutionizing how we interact with our finances. We explore the significant role Wi-Fi solutions play in transforming traditional banking into a seamless, efficient, and customer-centric experience. As a specialized provider of Wi-Fi solutions, we are dedicated to empowering banks to harness the full potential of connectivity. Enhanced customer experience: From mobile banking apps to self-service kiosks, Wi-Fi enables customers to access their accounts, make transactions, and manage investments seamlessly. Fast, stable Wi-Fi ensures smooth interactions, reducing wait times and enhancing customer satisfaction. Digital banking innovations: Wi-Fi connectivity lays the foundation for innovative services such as mobile check deposits, person-to-person payments, and digital wallets. These innovations simplify financial tasks, making banking convenient and accessible anytime, anywhere. Efficient employee operations: Wi-Fi empowers bank employees to provide personalized services on the go, whether it's assisting customers with inquiries or facilitating account opening processes. It accelerates internal communications and optimizes daily operations. Secure transactions and data: Wi-Fi solutions in banks are designed with robust security features to ensure the confidentiality of customer data and financial transactions. Advanced encryption and network segmentation protect sensitive information from unauthorized access. World Wide WiFi Experts® for Banking We are specialized in installing Wi-Fi networks for banks and deliver professional services to our clients in the financial sector because we understand the security requirements of the industry. Our clients at local financial institutions are often using Wi-Fi to try to differentiate their services and add value so they can attract new customers and collect data. Since we are dealing with money, security is of the utmost importance for both the end-users and the network administrators. Some banks would like to have a Wi-Fi network installed yet are worried about allowing their customers access to surf social media or shop online. We can dispel this concern for you. We can ensure that your bank can offer the same promotions, deals, and security via a temporary sponsored network or via a permanent installation. A sponsored Wi-Fi network creates a full brand experience for the end-user. World Wide WiFi Experts® guarantee: - Strong Encryption, Robust Authentication - Compliance - Mobility - Stable and reliable Wi-Fi for Banking / Financial / Insurance sector companies Explore more: https://lnkd.in/e6ycEtij #wifi #wireless #rf #coverage #securetransactions #digitalbanking
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As #openbanking #payments are gradually becoming an integral part of the payments mix across the globe, their comparison with credit cards is inevitable. Can they really replace or displace them? Let’s take a look. On the one hand side, we have the traditional 4-party model, dominated by Visa and Mastercard who manage the rails that connect banks with customers. A typical transaction flow would look like this: 1. A third-party (merchant) gateway identifies the right payment network 2. The (card) network confirms the customer authorization 3. The network routes the transaction to the customer’s bank (the issuer) for approval 4. The network does the same with the merchant’s bank (the acquirer) 5. After the approvals the gateway confirms the transaction 6. The merchant’s bank settles with the network, whereas payment is done by the customer’s bank For this middleman role, card networks define access fees (the costs for routing a card payment through their network) and interchange fees that merchants pay to the card issuers. The latter can range from 0.3% for credit cards in Europe (there is a cap) and all the way up to 3.5% in the US and Canada (the most expensive in the world). On the other hand, open #banking is a game changer because it connects merchants with consumers in a direct way, without intermediaries: payments are initiated directly from the consumer’s bank account. The process looks like this: 1. The customer chooses ‘Pay by bank’ at checkout and selects the bank 2. The transaction is redirected to the customer’s banking app 3. The transaction is approved, and the merchant is notified Three arguments speak in favour of open banking payments: — Not only are PIS (payment initiation) transactions a fraction of the card costs, but also, they offer increased security, enhanced user experience and instant completion (as instant schemes around the globe proliferate). — Due to higher competition and decreasing margins merchants have a stronger than ever incentive for cheaper ways of accepting payments and transferring funds. — Whereas the vast majority of modern #fintech offerings are built on existing infrastructure – having benefited from the decoupling of the front-end from legacy systems – open banking is powering for the first time in a long period the build-up of a real, additional infrastructure layer that has the potential to influence the entire #finance set-up in the years to come. Does that mean that open banking will replace credit cards? So far it hasn’t happened, and it will most probably be a gradual adjustment where open banking will co-exist alongside with credit cards in a new and more complex multi-polar payments landscape.
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