FinTech Futures: Top five stories of the week – 2 June 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Mambu CEO and co-founder Eugene Danilkis steps down
Eugene Danilkis, CEO and co-founder of core banking technology vendor Mambu, has stepped down from his role as of today.
Danilkis, who served as Mambu’s CEO for 13 years, will stay on as a shareholder and member of the board.
“I’ll be taking a break to rest, recover and spend time with my family,” Danilkis writes in a LinkedIn post. “And then, I’m sure I’ll be back to wanting to be a part of creating something remarkable and take on new challenges and growth opportunities.”
Mambu’s chief technology officer (CTO), Fernando Zandona, will be taking over as interim CEO, leading the company through the transition period until a replacement is found.
Paytech titan Diebold Nixdorf set to file for Chapter 11 bankruptcy protection
Paytech heavyweight Diebold Nixdorf is set to file for Chapter 11 bankruptcy protection as part of a debt restructuring agreement with stakeholders.
The Hudson, Ohio-based firm says the restructuring support agreement is expected to “significantly” reduce debt and provide “substantial additional liquidity” to support the firm’s operations.
Diebold Nixdorf chair, president and CEO Octavio Marquez says: “With the support of our creditors, we have reached an agreement to restructure and strengthen our balance sheet, enhance liquidity and position Diebold Nixdorf for long-term success.
“Our strengthened financial position also enables us to better serve our customers, employees, suppliers and partners.”
The company adds it will “continue to pay vendors and suppliers through the expected restructuring process in the ordinary course of business”.
Regnology in talks to acquire French regtech Invoke
Regnology, a regulatory reporting software provider, is in exclusive talks to acquire Invoke, a France-based provider of financial, regulatory and tax reporting solutions for supervisory authorities and reporting entities.
On completion, the deal will mark the fifth acquisition by Regnology in less than a year. The move follows the acquisition of UK-based statistical SDMX reporting specialist Metadata Technology earlier this month.
Regnology CEO Rob Mackay says these acquisitions set the firm “on an accelerated path for growth internationally”.
Mackay claims Invoke’s solutions will “complement our technology stack” while the company’s “deep knowledge of the French and Luxembourg markets” will help strengthen his firm’s ability to deliver regtech and tax reporting solutions “on a wider scale”.
US banking giants JP Morgan Chase and First Citizens cut 500 jobs each
US banking giants JP Morgan Chase and Silicon Valley Bank’s new owner, First Citizens, have cut around 500 jobs each, according to news reports.
CNBC reports that JP Morgan Chase cut some 500 jobs last week, mostly from its technology and operations teams.
JP Morgan is reportedly also trimming the workforce of its latest acquisition, First Republic Bank, which it bought from the US Federal Deposit Insurance Corporation (FDIC) in a deal worth $10.6 billion earlier this month. According to BBC News, around 1,000 staff, or 15% of First Republic’s total headcount, will be laid off.
First Citizens Bank, which acquired assets from beleaguered Silicon Valley Bank in March, also cut around 500 positions held by former SVB staff last week, according to a BBC News report.
In an email, the bank’s CEO Frank Holding wrote that the cuts would affect “select SVB corporate functions and do not include any personnel in client-facing positions”.
Tradeweb acquires Aussie trading platform Yieldbroker in AU$125m deal
Electronic marketplaces operator Tradeweb has acquired Aussie trading platform Yieldbroker in an all-cash deal worth AUD 125 million ($82 million), expected to close later this year.
Tradeweb’s marketplaces cover rates, credit, equities and money markets while Yieldbroker is a trading platform for Australian and New Zealand government bonds and interest rate derivatives covering the institutional, wholesale and primary segments.
The deal will see both firms leverage their trading solutions and industry expertise to create “more liquid, transparent and efficient” fixed income markets.
Tradeweb CEO Billy Hult says the deal will allow the firm to add “significant value” for Aussie and New Zealand bond and derivatives customers.