FinTech Futures: Top five stories of the week – 24 March 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
JP Morgan snaps up VC investment analytics software firm Aumni
JP Morgan Chase has acquired Aumni, a provider of investment analytics software for venture capital firms, for an undisclosed sum.
The acquisition, expected to close in H1 2023, will build out JP Morgan’s private markets platform for companies, employees and investors.
The US multinational says the deal will complement its recent acquisition of Global Shares and the launch of its fundraising management platform Capital Connect, creating an “industry leading” private market offering.
Founded in 2018, Aumni’s proprietary data analytics engine structures, tracks and analyses essential legal and economic terms underpinning growth-stage private market transactions.
FDIC offloads non-crypto Signature Bank deposits to Flagstar Bank
New York Community Bancorp subsidiary Flagstar Bank is set to acquire certain assets and liabilities from recently shuttered Signature Bank from the Federal Deposit Insurance Corporation (FDIC).
Flagstar will acquire $38 billion worth of assets from the FDIC-controlled banking outfit, now known as Signature Bridge Bank, including cash reserves of around $25 billion and $13 billion in loans. The deal also includes assumed liabilities of around $36 billion, including deposits of around $34 billion.
Flagstar has also picked up Signature’s wealth management and broker-dealer business and will take over the bank’s 40 former branches.
The firm did not acquire any digital asset banking or crypto-related assets or deposits, nor did it acquire loans or deposits related to Signature Bank’s fund banking business.
The FDIC will provide crypto-related deposits directly to customers.
ASX creates dedicated CIO role to lead standalone technology division
The Australian Securities Exchange (ASX) has set up a new dedicated chief information officer (CIO) position within the firm as it looks to enhance its focus on enterprise technology and pursue more “data opportunities”.
The new CIO will report directly to CEO Helen Lofthouse and will be tasked with leading a standalone tech division, ASX Technology, and delivering the firm’s enterprise-wide technology renewal programme.
ASX Technology has been set up to develop ASX’s enterprise technology strategy, technology security and governance, technology infrastructure, and enterprise technology functions.
The new position has been created by splitting up the current group executive, technology and data and CIO role, leaving current occupant Dan Chesterman to focus squarely on the firm’s customer-facing tech and data business.
UBS buys Credit Suisse in government-backed deal
Financial services heavyweight UBS has acquired struggling investment banking giant Credit Suisse in a bid to quell growing fears of a global banking crisis.
The new business entity will be worth more than $5 trillion, with invested assets worth more than $1.5 trillion. Media reports suggest the acquisition will cost $3.25 billion.
The takeover of the beleaguered firm has the full support of the Swiss government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank (SNB).
The SNB says the takeover represents a solution that secures “financial stability and protects the Swiss economy in this exceptional situation”.
Both firms have been granted “unrestricted access” to the central bank’s facilities, the SNB says, through which they can obtain liquidity, as well as the opportunity to apply for a loan worth CHF 100 billion ($107.7m). Credit Suisse can also apply for another similar loan backed by a federal default guarantee.
India’s PhonePe secures additional $200m from Walmart
Indian payments app PhonePe’s fundraising spree continues as its secures an additional $200 million from majority investor Walmart, at a pre-money valuation of $12 billion.
The fresh funding forms part of PhonePe’s ongoing fundraise of up to $1 billion in capital. The new tranche brings the total capital raised in this round so far to $650 million.
Last month, PhonePe bagged $100 million from Ribbit Capital, Tiger Global and TVS Capital Funds. The round was kicked off in January, when it raised $350 million from General Atlantic at the same valuation. The company expects further investments down the line.