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Walmart to launch fintech startup with partner Ribbit Capital

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Dive Brief:

  • Walmart is creating a fintech startup in partnership with venture capital firm Ribbit Capital, the big-box retailer announced Monday.

  • The new venture will “develop and offer modern, innovative and affordable financial solutions” to customers and employees, Walmart said.

  • “For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs,” John Furner, president and CEO of Walmart U.S. said in a statement.

Dive Insight:

The details of Walmart’s new fintech startup are scarce. The Bentonville, Arkansas-based company did not disclose the name of the new entity, specific services or a launch date.

The retailer said the strategic partnership “will bring together Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates.”

The startup will be majority-owned by Walmart and its board will include Furner, Walmart Executive Vice President and CFO Brett Biggs and Meyer Malka, managing partner of Palo Alto, California-based Ribbit Capital.

Walmart said its plans to add independent industry experts to the fintech’s board and build a management team of experienced fintech leaders. The company also plans to grow the startup through partnerships and acquisitions with fintech companies.

“When we combine our deep knowledge of technology-driven financial businesses and our ability to move with speed with Walmart’s mission and reach, we can create and deliver financial offerings that are second to none,” Malka said in a statement.

Walmart’s intention to expand into fintech is not the first time the retail giant has made moves into the financial services space.

In partnership with Green Dot, the company already operates a prepaid debit card called Money Card, which customers can load with funds and use to make purchases.

Walmart said it will continue to serve customers through its existing financial services products, including Money Card, check cashing, money transfers, installment financing and its Walmart credit card.

Andrew Cosgrove, the former general counsel and chief compliance officer at LendingUSA, said he thinks Walmart’s new fintech plans could mean the retail giant is looking to bring its financial services infrastructure in-house.

“Green Dot owns all of the interface, the technology and the whole infrastructure,” he said, regarding Money Card. “I think they feel like it would be more useful for them to build their own infrastructure, which is what most fintechs are doing.”

Ribbit Capital’s past investments in top-tier fintechs such as Affirm, Credit Karma and Robinhood also signal the retailer is setting itself up for a successful venture, said Cosgrove, whose former company, the challenger bank Upgrade, is also a Ribbit portfolio company.

“Ribbit Capital is a top-tier fintech investment venture capitalist,” he said. “Malka is really well-versed in all areas of fintech. I believe that they’re going to be well positioned to create a winning product, whatever the product might be.”

Walmart’s brick-and-mortar presence could also help the retailer win over the unbanked and underbanked, a demographic that has historically had trouble trusting financial institutions, including online-only fintechs, Cosgrove said.

“The fact that Walmart has bricks-and-mortar locations in many communities will go a long way in building that trust,” he said.

Commerce and banking

Walmart has acted on its financial services ambitions in the past when it unsuccessfully pursued a banking license via the controversial industrial loan company (ILC) charter route in 2005.

Walmart’s bank charter application was met with industrywide opposition, and the company withdrew it two years later.

Large corporations moving into finance have drawn criticism from lawmakers and bank trade groups in recent months, as fintech firms and commercial companies have shown increasing interest in obtaining ILC charters.

Japanese e-commerce giant Rakuten has been pursuing an ILC since the summer of 2019.

“We have a very large customer base already in the United States, and part of our aspirations is to provide banking services to them,” Rakuten Bank America CEO Lee Carter told Banking Dive in August.

Sen. John Kennedy, R-LA, warned against commercial firms obtaining bank charters when he introduced a bill at the end of 2019 aimed at closing a “loophole” that allows ILCs to bypass oversight by the Federal Reserve.

“If they’re allowed to handle your banking services, they’re going to turn into continents,” he said at the time.

The details of Walmart’s new fintech startup are scarce. The Bentonville, Arkansas-based company did not disclose the name of the new entity, specific services or a launch date.

Source: https://www.bankingdive.com/news/walmart-fintech-startup-ribbit-capital/593189/

Fintech

The new playbook: RBI steps in to stem the nexus between banks and fintechs

Read more about The new playbook: RBI steps in to stem the nexus between banks and fintechs on Business Standard. With the RBI red-flagging mushrooming of digital apps, the tango between banks and fintechs may be in for a big change, report Hamsini Karthik and Raghu Mohan

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With the RBI red-flagging mushrooming of digital apps, the tango between banks and fintechs may be in for a big change, report Hamsini Karthik and Raghu Mohan

Topics
Indian Banks | Fintech | Indian banking sector

Last week, the Reserve Bank of India (RBI) red-flagged the proliferation in digital lending platforms and fintech applications. “This in itself tells you a lot about the close association which has developed between banks and fintechs,” says Ajay Garg, founder-managing director of Equirus Capital.

To get a sense of what’s at play here, let’s step back and look at the early weld between electronic and mobile payment platforms almost a decade ago. In 2008, Telenor picked up a 51 per cent in Tameer Microfinance Bank in Pakistan; it got Telenor-Pakistan a banking …

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First Published: Sun, January 17 2021. 19:48 IST

Last week, the Reserve Bank of India (RBI) red-flagged the proliferation in digital lending platforms and fintech applications. “This in itself tells you a lot about the close association which has developed between banks and fintechs,” says Ajay Garg, founder-managing director of Equirus Capital.

Source: https://www.business-standard.com/article/finance/a-free-for-all-tango-between-banks-and-fintechs-set-for-a-big-change-121011700699_1.html

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Fintech

Future FinTech Group (NASDAQ:FTFT) Trading Down 8.2%

Future FinTech Group Inc. (NASDAQ:FTFT)’s stock price traded down 8.2% during trading on Friday . The company traded as low as $6.20 and last traded at $6.68. 5,595,971 shares were traded during mid-day trading, a decline of 90% from the average session volume of 53,352,188 shares. The stock had previously closed at $7.28. The business’s […]

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Future FinTech Group logoFuture FinTech Group Inc. (NASDAQ:FTFT)’s stock price traded down 8.2% during trading on Friday . The company traded as low as $6.20 and last traded at $6.68. 5,595,971 shares were traded during mid-day trading, a decline of 90% from the average session volume of 53,352,188 shares. The stock had previously closed at $7.28.

The business’s 50 day simple moving average is $3.05 and its 200 day simple moving average is $2.40. The company has a quick ratio of 1.52, a current ratio of 1.53 and a debt-to-equity ratio of 0.01.

A hedge fund recently bought a new stake in Future FinTech Group stock. Paloma Partners Management Co acquired a new stake in Future FinTech Group Inc. (NASDAQ:FTFT) in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 26,923 shares of the company’s stock, valued at approximately $59,000. Paloma Partners Management Co owned 0.06% of Future FinTech Group at the end of the most recent reporting period. Hedge funds and other institutional investors own 0.47% of the company’s stock.

Future FinTech Group Company Profile (NASDAQ:FTFT)

Future FinTech Group Inc, through its subsidiaries, operates a real-name block chain e-commerce platform that integrates block chain and internet technology in People’s Republic of China. It operates through CCM Shopping Mall Membership, Sales of Goods, and Others segments. The company offers Chain Cloud Mall (CCM), an enterprise customer interactive and comprehensive shopping and sales service platform; NONOGIRL, a cross-border e-commerce platform; and DCON, a block chain-based application incubator and a digital payment system.

Featured Article: What’s a Black Swan?

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Source: https://www.themarketsdaily.com/2021/01/17/future-fintech-group-nasdaqftft-trading-down-8-2.html

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Fintech

“Goldman Sachs to Enter Crypto Market ‘Soon’ With Custody Play: Source” – “FinTech” Nuzzel Newsletter by MasterFeeds on Sat, Jan 16 2021

Sat, Jan 16 2021: “FinTech” by MasterFeeds (MasterFeed) on Nuzzel. Subscribe to “FinTech” Nuzzel Newsletter

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CoinDesk – Ian Allison – Jan 15, 1:46 PM

U.S. banking powerhouse Goldman Sachs has issued a request for information (RFI) to explore digital asset custody, according to a source inside the bank. When asked about timing, the Goldman source said the bank’s custody plans would be…

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CoinDesk – Valerian Bennett – Jan 11, 11:36 AM

On Jan. 6, 2021 (or what seems like the 739th day of 2020), a riotous mob stormed the United States Capitol. It has been over 200 years since the last storming of the Capitol during the War of 1812. This time, the building remained under occupation…

Source: https://nuzzel.com/MasterFeed/fintech/2021/01/16

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