FinTech Futures: Top five news stories of the week – 9 August 2024
Here’s our pick of five of the top news stories from the world of fintech this week, featuring NCR Voyix, CIBC, Société Générale and more.
Philippines-based fintech Mynt sees valuation top $5bn with MUFG and Ayala funding
Mynt secures funding from MUFG and Ayala
Philippines-based fintech Mynt (Globe Fintech Innovations) has seen its valuation rise to $5 billion after securing a $393 million investment from MUFG Bank and another $393 million investment from Ayala Corporation.
MUFG’s investment will land the group an 8% stake in the company, while existing backer Ayala Corporation will receive an additional 8% interest, raising its total stake to around 13%, as per a report by Bloomberg.
In addition, MUFG has announced that Mynt will join the MUFG Openly-connected Digital Ecosystem (MODE) as a “new core member”.
Founded in 2015, Mynt operates two prominent fintech firms: Fuse Lending, which offers Filipinos access to business loans and microloans, and GXI, the mobile wallet operator of GCash.
The fintech previously secured a $300 million funding round in 2021.
NCR Voyix agrees to sell digital banking unit to Veritas Capital for $2.45bn
NCR Voyix has entered into a definitive agreement to sell its cloud-based digital banking business to private equity firm Veritas Capital for $2.45 billion.
The all-cash deal includes a future additional contingent consideration of up to $100 million and is forecast to close by the end of this year, subject to the approval of regulators.
The digital banking business offers a suite of software solutions aimed at supporting the digital transformation of banks, credit unions and other financial institutions.
NCR Voyix says proceeds will be used to “accelerate the achievement of certain financial objectives, including de-levering the balance sheet, which will enable greater strategic investment in the company’s core businesses”.
CIBC plans to hire for 200 new data and AI roles over the next 12 months
CIBC announces plans to bolster AI tech talent
CIBC, Canada’s fifth-largest chartered bank, has unveiled plans to hire over 200 data and AI professionals within the next 12 months in a push to upgrade its AI capabilities.
The planned new hires will work to advance the development of “resilient and trustworthy AI solutions” throughout the bank.
“Now is the right time to add to our talent base through hiring and upskilling in data and AI-focused roles, as we leverage this new technology to do more for our clients and deliver a better experience for team members,” states Christina Kramer, CIBC’s group head of technology, infrastructure and innovation.
CIBC says it has a history of integrating AI into “key functions”, including recent pilot programmes featuring generative AI functionality.
UBP snaps up Société Générale’s UK and Swiss private banking subsidiaries in €900m deal
Union Bancaire Privée (UBP), one of the largest private banks in Switzerland specialising in wealth and asset management, has agreed to purchase two of Société Générale’s international private banking subsidiaries for €900 million.
The deal includes the French banking group’s Swiss private banking unit, Société Générale Private Banking Suisse, and SG Kleinwort Hambros, its wealth management arm in the UK and Channel Islands.
“These sales are part of the execution of Société Générale’s strategic roadmap targeting a streamlined, more synergetic and efficient business model, while strengthening the Group’s capital base,” says Société Générale.
The two transactions are forecast to be completed by the end of Q1 2025, and are expected to enable UBP to strengthen its footprint in Switzerland and expedite its UK expansion, where it has been “developing its activities for nearly three decades”.
NerdWallet to cut workforce by 15% as part of restructuring plan to reduce operating expenses
NerdWallet to reduce workforce by 15%
NerdWallet, a US-based financial comparison site, is set to cut approximately 15% of its full-time workforce as part of a restructuring plan intended to “reduce the company’s operating expenses and better position the company to execute its long-term strategic initiatives”.
NerdWallet expects to incur a pre-tax charge of approximately $8 million to $10 million as a result of the restructuring plan, which came into effect on 1 August, as per an 8-K filing made with the US Securities and Exchange Commission (SEC).
This expense, the filing says, will occur in Q3 2024, with the workforce reduction to be “largely completed by the end of that quarter”.
“We are committed to building NerdWallet with a long-term orientation, and that sometimes requires difficult decisions,” NerdWallet co-founder and CEO Tim Chen says in the filing.
“This decision is part of a larger effort to improve our operational efficiency and better position NerdWallet to invest more in our most important long-term strategic initiatives.”
