Fintech News: Evolve Bank Data Breach

This week in fintech news, the spotlight falls on a significant data breach affecting Evolve Bank & Trust, a financial institution popular with fintech startups. The incident, which occurred on June 26th, resulted in the compromise of sensitive data belonging to both Evolve's retail banking customers and its fintech partner customers.

• Evolve Bank disclosed that the cyberattack exposed personal information of customers and financial technology partners, including Affirm, Mercury, Bilt, Alloy, and Stripe.
• The breach extended beyond Evolve, with fintech company Wise announcing that some of its customers' personal data may have been stolen in the incident.
• The incident highlights the growing vulnerability of fintech ecosystems to cyberattacks, urging increased focus on security measures.

Fintech News: Notable Acquisitions

The fintech landscape saw a flurry of activity in mergers and acquisitions this week, with notable deals shaping the industry's future.

• Nubank, a leading Brazilian financial institution, acquired Hyperplane, an AI-driven data intelligence startup, for an undisclosed sum. Hyperplane specializes in empowering banks to develop custom models for risk, collections, and marketing departments.
• Chime, a leading fintech platform, announced plans to acquire Salt Labs, a company known for its gamification approach to contract work, for an estimated $173 million.
• Robinhood, the popular investing platform, further embraced AI by acquiring Pluto Capital, an AI-powered research platform, to enhance its investment tools and analysis capabilities.

Fintech News: Payment Solutions

The payments sector witnessed a wave of funding activity this week, as startups focus on providing innovative solutions for businesses and consumers.

• Payabli, a platform enabling software companies to embed and facilitate payments through APIs, secured $20 million in Series A funding.
• Rainforest, another player in the embedded payments space, raised $20 million in Series A funding, building on its recent seed round. Rainforest aims to provide payment processing solutions for software platforms.
• Chift, a Belgian startup empowering SaaS companies to integrate with numerous financial tools via a unified API, secured $2.5 million in seed funding to expand its offerings.

Fintech News: Global Expansion

The fintech industry continues to expand its reach globally, with startups targeting new markets and addressing specific regional needs.

• Connect Money, an Egyptian banking-as-a-service startup, secured $8 million in seed funding to leverage its popularity in exploring new business opportunities across African markets.
• Feather, a German startup focused on simplifying health insurance for expats in Europe, raised €6 million to expand its platform and cater to the growing expat population.

Fintech News: Plaid's Enterprise Growth

Plaid, a prominent fintech company known for its data aggregation services, has witnessed significant growth in its enterprise customer base. This expansion indicates the company's expanding reach beyond traditional fintech clients and its adoption by larger businesses.

• Plaid's president, Jen Taylor, revealed that the company's enterprise customer growth is now outpacing the rest of its business, signifying a shift towards catering to larger companies.

Fintech News: Flipkart's Payments App

Flipkart, a major Indian e-commerce giant, has entered the payments space with the launch of its own app called Super.money. This move signifies the company's growing ambitions in the fintech sector.

• Super.money allows users to make mobile payments through UPI, a popular interoperable network in India, further expanding Flipkart's fintech offerings.

Fintech News: AI Trends

Artificial intelligence (AI) continues to be a major driver of innovation in the fintech industry, with institutions and startups actively adopting AI-powered solutions.

• Citigroup has predicted that AI will displace more jobs in the banking sector than any other industry, highlighting the transformative potential of AI in financial services.
• Goldman Sachs has deployed its first generative AI tool across its operations, demonstrating the increasing integration of AI into financial institutions.
• Point72 Ventures, a venture capital firm founded by billionaire Steve Cohen, has laid off its fintech team, pivoting towards AI-focused investments, indicating the industry's shift towards AI-powered solutions.