?Where were you on September 15, 2008?

Welcome to the first edition of my new weekly newsletter “FinTech in Five Friday”!

From now on, every Friday, I will send you a weekly briefing where you get the 5?? most important FinTech news and analysis you’ll actually look forward to reading.

The weekend is on the horizon, but before we all kick back and relax, let's dive into this first week's roundup of the most important news and insights from the FinTech industry.

Enjoy!

5 News Updates You Need To Know:

???? Revolut abandons US banking licence application

Revolut is understood to have withdrawn its application for a US banking licence . Despite this, the company continues to expand its services in the US market.

The UK-headquartered neobank, which is one of the UK’s most valuable FinTechs, said in 2021 that it had submitted a draft application for a US banking licence.

The UK-headquartered neobank, which is one of the UK’s most valuable FinTechs, said in 2021 that it had submitted a draft application for a US banking licence.

The FDIC told Tech.eu that it has no application on file from Revolut while the DFPI said it “never received a de novo bank charter application from Revolut”.

???? FinTech super-app Rauva is to acquire the bank Banco Empresas Montepio for around €30m

This acquisition will enable Rauva to introduce financial offerings tailored for small-to-medium-sized enterprises, freelancers, and entrepreneurs, including innovative credit solutions.

Currently, Rauva's platform encompasses digital banking, payment services, issuance of both physical and digital cards, and business expense and accounting management.

Jon Fath , Co-founder and CEO of Rauva, says:

“Our acquisition of Banco Empresas Montepio not only saves time for us in the long run but will increase our efficiency and ability to scale. Since day one we′ve been working towards building a fully fledged bank, which is essential for our customers who depend on having the best possible solutions and services. This exciting move also puts us even closer to becoming one of Portugal’s first unicorns.”

???? Xbox to launch the Xbox Mastercard, its first-ever credit card in the U.S., issued by Barclays

Barclays US Consumer Bank has partnered with Xbox to launch the "Xbox Mastercard," a no-annual-fee credit card that allows players to earn points on everyday purchases, which can be redeemed for games and add-ons at xbox.com .?

The card is Initially exclusive to Xbox Insiders in the 50 U.S. states from September 21, and the card will be available to all Xbox players in 2024.?

Now this is what I call Embedded Finance at its finest??

???? Nubank is launching one more type of secured loan for its customers in Brazil: the FGTS-backed loan

The new product aligns with the company’s plan to expand its secure credit offering in 2023 and is gradually being made available to the eligible customer base.

FGTS (Severance Pay Fund for Length of Service) is a mandatory savings fund for employees in Brazil, in which employers are required to deposit a percentage of an employee’s monthly salary.

The money can only be withdrawn in the birthday month of each employee or on specific occasions, such as after a job loss or to make a down payment on a property.

???? PayPal Launches Crypto to USD Off-Ramps

The launch of the new feature follows PayPal's introduction last month of a crypto on-ramp service through MetaMask and Ledger.

Adding to its crypto product suite, payment service PayPal has launched a new off-ramp service to convert crypto tokens to USD directly from wallets into PayPal accounts.

The payments giant announced on Monday that its new “Off Ramp” service is “live on MetaMask today” for U.S. users and is available to “wallets, dApps and NFT marketplaces.”

5 FinTech Deep-Dives You Need To Know:

1?? How To Build The AI Bank Of The Future

2?? Real-time payments are the backbone of modern economies

3?? Understanding Open Banking Payments

4?? The Evolution and Power of Payment Orchestration in FinTech

5?? Beyond the Hype: What Adyen's Share Slump Tells Us About FinTech's Future

Historical Fact You Need To Know (remember):

Every week I will share a big event in the history of Financial Services, for us to remember where we were and what we can learn from this event:

Today, exactly fifteen years ago, the world witnessed the largest commercial collapse in history.

On September 18, 2008, Lehman Brothers, a global financial services firm, filed for Chapter 11 bankruptcy protection.

This event greatly intensified the 2008 global financial crisis and led to major changes in global financial regulations.

Background: Lehman Brothers Holdings Inc. was a global financial services firm founded in 1850. By the 21st century, it had become the fourth-largest investment bank in the U.S.

The bank was heavily involved in underwriting the issuance of mortgages, especially subprime mortgages. During the housing boom in the U.S. in the early 2000s, Lehman Brothers made significant profits by securitizing these mortgages, effectively turning them into tradeable financial instruments.

Lead-up to the Collapse: As the U.S. housing market began to decline in 2006 and 2007, the value of securities tied to U.S. real estate pricing started to drop. Lehman Brothers, with its extensive exposure to the subprime mortgage market, began feeling the heat.

The company reported significant losses in 2008. The declining confidence among investors led to a drop in the company's share price.

The Collapse: On September 15, 2008, facing an immense loss from exposure to deteriorating subprime mortgages and denied support from the U.S. federal government, Lehman Brothers filed for Chapter 11 bankruptcy protection.

With assets of $639 billion, it was the largest bankruptcy filing in U.S. history.

Where were you in 2008?

I remember starting working on my payments consultancy (and comparison websites) business back in 2008 when this all happened. I also remember that this was probably not the best timing to quit your job and start your own business??

But hey, is there ever a perfect moment?

From that experience, I've learned the importance of listening to your heart and seizing the moment when it feels right. Block out those who advise against it.

Now over to you: Where were you? And were you already working in the financial industry around this time in 2008?