Razer & Ant Financial Apply for Virtual Banking Licences, BBVA Explores Product Sales via Amazon, B-North Completes ￡2M Crowd Raise

This week (30 December - 3 January) was yet another interesting and really exciting one in the world of FinTech. The FinTech arm of gaming company Razer as well as FinTech giant Ant Financial have applied for a virtual banking licence from the Monetary Authority of Singapore, Deutsche Bank in Spain is to issue a credit card with a dynamic CVC code that changes every four hours, in a bid to create a safer shopping experience for online purchases, former Starling Bank co-founder and CTO Mark Hipperson is preparing a January launch for a new cryptocurrency startup dubbed Zyglu, and much more.

Without further ado, let us dive into what has happened in the financial technology sector this week.

Gaming Group Razer Applies for Virtual Banking Licence; Ant Financial Joins Too

The FinTech arm of gaming company Razer has applied for a virtual banking licence from the Monetary Authority of Singapore, with the aim of creating a full-scale digital bank targeting the millennial market. 

Razer says it planning to extend its existing FinTech offerings in mobile payments to the digital banking market by building the world’s first Global Youth Bank.

The firm has teamed up with an array of homegrown and Asian companies to funds the project, including Sheng Siong Holdings; FWD; Linksure Global; Insignia Ventures Partners; and Carro. Under the agreements, Razer Fintech would retain a 60% stake in the new bank.

Technology and service partners include Justco, Quantifeed, Saxo Markets, Real Vision, SkyScanner, SoCash, Turnkey Lender, V-Key, and Visa.

Razer is the second non-bank to appply for one of five digital banking licences from Singapore's central bank, following a joint application from ride-hailing firm Grab and teclco SingTel. Chinese behemoth Ant Financial today has also filed an application for a wholesale licence to service its corporate clients.

Shares in Razer - which has been building up its financial technology assets over the past year through its existing digital payments networks Razer Merchant Services and e-wallet service Razer Pay - soared on the news, gaining as much as 13.4% on the day as investors warmed to an offering designed to appeal to the company's young base of 70 million users.

Deutsche Bank to Launch 'Motion Code' Card in Spain

Deutsche Bank in Spain is to issue a credit card with a dynamic CVC code that changes every four hours, in a bid to create a safer shopping experience for online purchases.

The German bank has teamed up with Mastercard and Idemia to launch the 'Motion Code' card under the brand name Tarjeta Calma. Idemia's Motion Code technology consists of a dynamic cryptogram changing randomly to provide better security for online payment by preventing data theft and cloning.

"The Deutsche Bank Mastercard Tarjeta Calma will go beyond usual payment card benefits and offers customers the latest security tech so that they can buy online in an environment where online shopping is ever growing," says Luis Miegimolle, Deutsche Bank Card Manager. "We are thrilled to pioneer this technology in Spain and introduce this new product backed by Mastercard and Idemia."

Other European banks have tried out dynamic CVC technology include SocGen, BNP Paribas, and BPCE.

Australia Delays Open Banking Roll Out Over Security Concerns

Australian authorities have delayed the introduction of Open Banking rules by six months amid concerns over testing and security of the new provisions for account data sharing.

The country's competition watchdog ACCC has updated the timeline for the implementation and launch of the Consumer Data Right (CDR) act in the banking sector from February to July 2020.

Under the revised deadline, consumers will be able to direct major banks to share their credit and debit card, deposit account and transaction account data with accredited service providers from 1 July 2020. Consumers’ mortgage and personal loan data will be able to be shared after 1 November 2020.

“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” ACCC Commissioner Sarah Court says. “Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”

SME Lending Challenger B-North Completes ￡2M Crowd Raise

B-North, the Manchester-based firm building an SME lending bank for the UK, has secured ￡2 million of financing from crowdfunding platforms Crowdcube and Growthfunders, adding to the ￡4.2 million it has raised in previous rounds.

Founded in 2018 by former Santander and Atom Bank executives, B-North is in the process of applying for its banking licence.

The fund raise comes on the back of a recent contract agreement with Newcastle Strategic Solutions for deposit-taking technology, and previous cloud-based core tech deals with vendors Mambu and nCino.

The firm is planning to open its first branch, or 'Regional Lending Pod', in its home town of Manchester in Q2 2020. 

Jonathan Thompson, co-founder & CEO, says B-North’s proposed regional pod model and cloud banking technology will allow it to lend up to ten times faster than other banks.

“The strength of investor response is testament to the B-North offering and the quality and efficiency of lending that we can deliver to help SMEs fulfil their potential,” he says. "It is the B-North team’s intention to serve the UK SME lending market with the utmost efficiency and understanding, delivering lending funds in as quick as ten working days.”

Starling Co-founder & CTO Mark Hipperson to Launch Crypto Startup

Former Starling Bank co-founder and CTO Mark Hipperson is preparing a January launch for a new cryptocurrency startup dubbed Zyglu.

Hipperson, who left Starling in 2016, has been working on the new venture since late 2018 and is currently awaiting an e-money licence from the Financial Conduct Authority. 

The Ziglu app will let users hold both fiat and up to five cryptocurrencies in an e-wallet, connecting with crypto exchanges for in-app currency transfers and enabling spending via a Mastercard debit card.

The venture has so far been funded by Hipperson's own financial resources and with the support of a number of angel investors. 

Ziglu has ambitions to to process up to $1 billion in transactions in its first year and to expand from the UK to the US by the third quarter.

BBVA Explores Product Sales via Amazon

Spain's BBVA is exploring the potential of selling financial products on Amazon.

The initial foray will see the bank join with renowned Spanish restaurant El Celler de Can Roca on the sale of a collection of products from the Michelin three-star restaurant’s recycling project; and Rocambolesc, chocolates and sweets crafted by Jordi Roca,the confectioner of the family.

BBVA says its intention is to move into offering banking products on the platform, using the pilot project as a way to trial the functionality of Amazon as an online store front for the bank's financial services. 

In a statement, the bank says:

Currently BBVA already sells close to 60 percent of its products over digital channels. Selling through Amazon would extend online sales opportunities, complementing the bank’s proprietary digital channels.

Amazon has not yet moved into selling financial services directly, and BBVA recognises that financial institutions must adapt to this way of selling.

Worldline Takes Pay-by-Face System on the Road

Worldline is to stage the first live demonstrations of a new pay-by-face system at the National Retail Federation expo in New York later this month.

The innovative biometric system was developed by Swiss startup OneVisage, the winner of a 'Grand Prix' award at Worldline's three-day e-Payments Challenge competition in Frankfurt in September.

OneVisage emerged the overall winner in the contest, which paired 25 FinTech startups with Worldline client banks and retailers to provide ground-breaking solutions to eleven industry challenges.

Wordline has been quick to get the system on-the-road, saying that the pay-with-your-face system uses "3D facial biometry and respects the users’ data privacy, giving them back the full control of their biometry unlike all other alternatives on the market".

Facial payments programmes have been popping up around the world over the past year, with Worldline rival Nets installing a pilot system at cafetaria in Denmark in December and Caixabank implementing a face payment programme at a Nestle store in Spain and restaurant in Barcelona.

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading company's expansion into Europe , I'm an active member of FinTech community and a TechFin evangelist.

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