• Fasanara Capital

Fintech + School Lunch, US Customers Surveys, VISA Abandoned $5.3bn, Mob Banking Thrive & Other News



Happy Wednesday!



This time:


  • How US customers’ attitudes to fintech are shifting during the pandemic

  • Visa abandons takeover of Plaid after DOJ raises antitrust concerns

  • Time to tighten rules on ‘buy now pay later’ operators

  • Top Reasons Why Mobile Banking Will Thrive In 2021

  • UK-based banking fintech Tide expands operations to India

  • Can fintech help the free school meals debacle?




How US customers’ attitudes to fintech are shifting during the pandemic



Recent surveys of US consumers reveal some shifting attitudes towards banks and fintechs after more than six months of the COVID-19 crisis.


Beyond its devastating impact on human health and the economy, the COVID-19 pandemic has reshaped much about the day-to-day lives of people across the globe. In this post, we highlight some observations on how the experience of living through a pandemic has influenced US financial decision makers’ willingness to use fintechs (see sidebar) for their financial needs.


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Visa abandons takeover of Plaid after DOJ raises antitrust concerns



Visa has ended its takeover efforts of Silicon Valley start-up Plaid about two months after the Department of Justice filed an antitrust lawsuit on grounds that it would limit competition in the payments industry.

The company said the decision to end the merger was mutual.

The deal hit a snag late last year after the DOJ pointed out Visa’s acquisition could eliminate a nascent competitive threat. The DOJ cited Visa CEO Al Kelly’s description of the deal as an “insurance policy” to neutralize a “threat to our important US debit business.”

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Top Reasons Why Mobile Banking Will Thrive In 2021



Demand for digital banking services, already rising steeply before the COVID-19 pandemic set in last year, was given even greater impetus during 2020 and is likely to have gained years of ground in what has been an extraordinary year.


Stay-at-home orders and social distancing requirements meant customers who were not already familiar with operating online had to become more comfortable with virtual alternatives and a reluctance to use cash also saw cashless solutions become more in demand.


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Time to tighten rules on ‘buy now pay later’ operators



The pandemic has transformed not only how we shop but how we pay. Over the past year, with repeated shutdowns of “non-essential” high street shops, many of us have switched to shopping online.


Millions of people have also turned from paying by debit or credit card to making online purchases by a fast-growing new method — buy now and pay later (BNPL).


But with about six companies, led by Klarna and Clearpay, now offering this service there is mounting concern about whether BNPL encourages people to buy things


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UK-based banking fintech Tide expands operations to India



Retirement savers keen to help slow climate change are being offered an opportunity to put their money into a ground-breaking “net zero” pension.


Cushon, a UK-based fintech, will from next week offer what it says is the world’s first net zero pension, accelerating a drive by the industry to green investment portfolios and reduce holdings in polluting industries.


“We know that people want their retirement savings to help tackle climate change without sacrificing returns,” said Cushon. “We wanted to find a very real way of making this work by delivering a pension that is net zero now. Not in 30 years, not in 15 years, but now.”


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Can fintech help the free school meals debacle?



Overall, the fintech sector grew in 2020, with respondents reporting an average transaction volume growth of 11% and an average number of transactions growth of 13%. When looking at market performance indicators related to customer growth, all relevant indicators (including the number of corporate customers, the number of new customers, and the number of new borrowers) increased year over year. The most significant positive change was reported in customer retention or renewal, which increased by 29% compared to the first quarter and second quarter of 2019.


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Thank you for the time!