Evolve Bank & Trust, a popular financial institution among fintech startups, recently announced that it had experienced a cyberattack and data breach. This incident potentially compromised the personal information of Evolve retail bank customers and customers of its fintech partners, including Affirm, Mercury, Bilt, Alloy, and Stripe. The breach also affected Wise, a prominent fintech company, which disclosed that some of its customers’ personal data may have been stolen. This news highlights the persistent threat of cyberattacks in the financial industry and the importance of robust security measures.
In another significant development, Thread Bank, a partner to BaaS (Banking as a Service) startups like Unit, faced enforcement action from the Federal Deposit Insurance Corporation (FDIC). This action underscores the regulatory challenges that fintech companies can encounter as they navigate the complex landscape of the financial industry.
The past week witnessed several notable acquisitions in the fintech space. Hyperplane, a data intelligence startup that had previously secured $6 million in seed funding, announced its acquisition by Brazil’s Nubank. This acquisition aligns with Nubank’s objective of empowering banks to develop their own models for risk assessment, collections, and marketing. Chime, a prominent neobank, also disclosed its plans to acquire Salt Labs for up to $173 million. Salt Labs had previously raised $10 million in March 2023. Additionally, Robinhood, a popular investment platform, expanded its offerings with the acquisition of Pluto Capital, an AI-powered research platform. These acquisitions demonstrate the growing consolidation and strategic partnerships within the fintech industry.
Several companies secured significant funding during this period. Payabli, which specializes in building infrastructure for software companies to embed payment capabilities through APIs, raised $20 million in a Series A funding round. Rainforest, another player in this space, also secured $20 million in its own Series A round, less than a year after its seed financing. Belgium’s Chift, a platform that enables SaaS companies to integrate with various financial tools through a unified API, raised $2.5 million in seed funding. Connect Money, an Egyptian banking-as-a-service startup, raised $8 million in seed funding to explore emerging business opportunities in African markets. German startup Feather raised €6 million to provide a solution for expats navigating health insurance systems in Europe.
Plaid, a leading fintech company, expanded its services beyond traditional fintech customers and witnessed significant growth in its enterprise customer segment. The company’s President, Jen Taylor, revealed that the enterprise customer segment is outpacing the rest of its business. This expansion reflects Plaid’s evolution into a multi-product company and highlights the increasing demand for its services from established financial institutions.
In other news, Indian e-commerce giant Flipkart introduced its own payments app called Super.money, signaling its ambitions in the fintech space. This move comes more than a year and a half after Flipkart’s separation from PhonePe. The new app allows users to make mobile payments via UPI, a popular interoperable network in India.
The fintech industry continues to evolve and innovate, as evidenced by developments such as AI displacing jobs in the banking sector, Goldman Sachs deploying its first generative AI tool, and billionaire Steve Cohen’s Point72 Ventures pivoting towards AI and laying off its fintech team. Moreover, there are exciting reports and analysis available, such as the global fintech report co-authored by BCG and QED Investors, as well as Bain Capital Ventures partner Matt Harris’ insights on the state of fintech in 2024.
For any tips or inquiries, readers can reach out to Maryann at maryann@techcrunch.com or send a message on Signal at 408.204.3036. Secure communications can be made through the provided link, which includes SecureDrop and encrypted messaging apps. The TechCrunch team can also be reached at tips@techcrunch.com.
