Edition 34 | Neo Banking Newsbeat | Your Weekly Neo Banking Updates

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1ST WEEK OF APRIL 2024

Greetings from Neo Banking, where financial innovation knows no bounds! Welcome to our weekly newsletter: Neo Banking Newsbeat the ultimate destination for staying ahead in digital finance.

Research Summary

Embedded Finance market to be worth $22bn by 2028

The embedded finance market is projected to reach $22 billion by 2028, growing 148% in the next five years per Juniper Research. This growth, fueled by technological advancements, will see revenue surpassing $228 billion. Key drivers include multi-rail payments, open banking API aggregation, and B2B market

expansion. Additionally, embedded insurance is expected to grow by 125%, notably in the Asia-Pacific region due to government initiatives. Despite its potential, embedded insurance remains uncommon among leading vendors.

Chase wealth planning tool draws millions of users

JPMorgan Chase's free Wealth Plan tool in the Chase Mobile app and Chase.com has attracted over a million users within a year. It offers personalized financial plans, goal tracking, and real-time guidance for short and long-term goals. Users can also simulate decisions' impacts and schedule advisor consultations. This

success reflects a trend of 10 million customers engaging with the tool for financial planning and goal achievement. Chase emphasizes the tool's accessibility and effectiveness in empowering customers to manage finances conveniently.

Zūm Rails takes in first capital to launch new banking-as-a-service, FedNow offerings

Montreal-based Zūm Rails, founded by Marc Milewski and Miles Schwartz, secured $10.5 million in Series A funding led by Arthur Ventures. Their platform streamlines payments by merging open banking with instant options like Visa Direct and Mastercard. They handle $1 billion monthly for 500+ clients including

Questrade and Desjardins. With a 200% growth in a year, they're focusing on US expansion and new banking-as-a-service features, including FedNow for instant FDIC-insured payments. Jake Olson of Arthur Ventures praised their profitability and comprehensive solution, ideal for companies valuing seamless digital transactions and instant payments.

Paynetics buys 'impact' banking app Novus

Paynetics, a Bulgarian embedded finance provider, acquired UK's Novus, an 'impact' neobank. Novus, founded in 2022, promotes ESG values by donating 'impact' points from purchases to chosen causes and enabling carbon footprint monitoring. Paynetics plans to enhance Novus's offerings and aid clients in ESG

initiatives. This move reflects Paynetics' growth strategy, including previous acquisitions in the UK. Novus's CEO highlights the alignment of missions, aiming to empower consumers and businesses toward positive impact with Paynetics' support. Financial details of the acquisition were not disclosed.

Advent to acquire Nuvei in $6.3bn deal

Advent International is acquiring Canadian payments firm Nuvei in a $6.3 billion all-cash deal, making Nuvei a private entity. Nuvei's shareholders will receive $34 per share, and CEO Philip Fayer will continue leading the company. The transaction is

expected to be finalized by the end of the year or in Q1 2025, pending shareholder approval. Both parties express optimism about future growth and collaboration in shaping the payment industry's evolution.

YC-backed digital bank Onyx Private tells customers it’s closing their accounts

Miami-based Onyx Private, a Y Combinator-backed digital bank catering to affluent Millennials and Gen Zers, is closing customer accounts but shifting to a B2B model for banks and credit unions. CEO Victor Santos confirmed the pivot, emphasizing it's not a shutdown but a strategic move. Despite previous growth and

a $4.1 million funding round, specifics on customer numbers were undisclosed. Regulatory issues were denied as a reason, with Santos citing strategic efficiency as the motive. Onyx's banking services transitioned from Piermont Bank to i3 Bank.

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