Know What's Happening in Banking
Know What's Happening in Banking
Klarna secures $2B facility and $1.7B risk transfer to boost lending
Klarna announced a $2 billion forward‑flow facility with Elliott Investment Management that will back up to $17 billion of U.S. loan originations over three years. On April 1 it completed a €1.7 billion Significant Risk Transfer led by Värde Partners, freeing capital for further growth.
Also developing:
Banks and trade groups are urging the Office of the Comptroller of the Currency (OCC) to strengthen oversight of core banking service providers, citing delayed system updates that jeopardize regulatory compliance. The three dominant vendors—Fiserv, Fidelity National Information Services, and Jack Henry & Associates—serve most small banks and credit unions, but uneven negotiating power leaves these institutions vulnerable. OCC officials have received extensive feedback after a recent request for information, highlighting challenges around core conversions, costly updates, and legacy mainframe code. Industry experts warn that without greater accountability, compliance gaps and costly customizations will persist.
The mortgage industry is accelerating a shift toward automated appraisals, highlighted by the Mortgage Credit Executive Order and the upcoming UAD 3.6 system. UAD 3.6 will require hyper‑granular, machine‑readable data, turning every appraisal into a data‑mining exercise and expanding automated flagging that...
Global Payments vaulted to the top of TSG’s 2026 Directory after acquiring Worldpay, processing roughly $2.8 trillion across 53 billion transactions in 2025. The five largest U.S. acquirers together handled nearly $9 trillion, accounting for about two‑thirds of total card volume, while the...
Fintech lender SoFi announced the launch of SoFi Big Business Banking, an enterprise platform that lets companies manage fiat and cryptocurrency transactions within a single, nationally chartered bank. The service offers 24/7 settlement, supports the SoFiUSD stablecoin and major crypto partners such as...
U.S. authorities alerted Goldman Sachs' Paris headquarters after an Iranian-linked group threatened to bomb the building. Police placed the site under surveillance, but a subsequent sweep found no suspicious devices. The threat follows a recent foiled bomb plot at Bank...
Grasshopper introduced its Model Context Protocol (MCP) server in August 2025, partnering with digital‑banking platform Narmi to let clients feed financial data into AI tools such as Claude or ChatGPT without exposing core banking systems. MCP acts as a secure...
The Financial Ombudsman Service (FOS) responded on 2 April 2026 to the FCA’s Mills Review, which examined AI’s long‑term impact on retail finance. Early analysis suggests AI contributed to roughly 35% of initial assessment responses, improving consumer argument clarity but also creating...
Flutterwave has obtained a national micro‑finance banking licence in Nigeria after acquiring open‑banking startup Mono, allowing it to hold deposits and issue loans directly. The move follows $40 billion in lifetime payments processed through its platform and eliminates reliance on third‑party...
Regulators have issued a revised Basel operational‑risk capital framework that replaces the 2023 model‑based approach with a standardized formula for U.S. Category I and II banks. The new method subtracts certain expenses from non‑interest income, applies a 70% reduction to fee‑based businesses,...
In this episode of the Trust Advantage series, Payroc CRO Brock Robertson discusses the evolving payment strategies of software platforms, highlighting the shift from full payment ownership (pay‑fac models) back toward trusted referral and partnership models. He explains how the...
Marquis Marketing Services, a data‑analytics firm used by hundreds of banks, confirmed a ransomware attack that exposed the personal and financial information of 672,075 individuals. The breach, traced to a flaw in firewall provider SonicWall’s cloud backup, has triggered a...
UAE authorities detained dozens of money‑changing operators tied to Iran’s Revolutionary Guard, shutting down firms and sealing offices. The move severs a key offshore conduit for hard‑currency flows that finance Tehran’s proxy wars, and it forces fintech platforms to tighten...
Experian’s 2026 Future of Fraud Forecast warns that AI agents, once a defensive tool for banks, are being weaponised by fraudsters, creating a machine‑to‑machine mayhem where liability is unclear. FTC data shows consumers lost over $12.5 billion to fraud in 2024,...
Double‑pledging, where the same loan serves as collateral for multiple financiers, is re‑emerging in sub‑prime auto lending and the UK home‑loan market, prompting concern for U.S. mortgage lenders. While monoline non‑bank lenders face limited direct exposure, banks with broader consumer‑finance...
Paymentology has partnered with South Africa’s branchless Bank Zero to accelerate digital banking access, merging Paymentology’s global card‑processing expertise with Bank Zero’s app‑first platform. The alliance will let fintechs, retailers, SMEs and digital platforms issue flexible Mastercard cards through a...
Bank of England Governor Andrew Bailey warned that recent failures in the private‑credit sector could foreshadow broader systemic risks similar to the 2008 crisis. He cited the collapses of Market Financial Solutions, First Brands and Tricolor as signs of market...
The WERO cross border interoperability is what matters most. Wero, Euro stablecoins, the Euro CBDC, and the EU ID; are foundational and will have network effects.
India’s central bank, the Reserve Bank of India (RBI), has tightened regulations on shorting the rupee. Effective immediately, the RBI increased margin requirements for rupee futures and introduced stricter reporting thresholds for large short positions. The move targets speculative bets...
Italy’s data protection authority disclosed that Intesa Sanpaolo failed to detect an insider’s unauthorized access for over two years. A single employee viewed the records of more than 3,500 customers, leading to a €31.8 million (≈ $34.7 million) fine. Regulators said the bank’s...
AUSTRAC has ordered payment platform MHITS Limited to appoint an external auditor to verify its anti‑money laundering and counter‑terrorism financing (AML/CTF) compliance. The directive follows a broader supervisory campaign that previously targeted WorldRemit and Airwallex and issued sector‑wide warnings about...
The FCA will classify bullying, harassment and related workplace misconduct as regulatory breaches starting 1 September 2026, extending its Code of Conduct beyond financial wrongdoing. Firms must treat such non‑financial misconduct as a compliance issue, updating reporting channels, disciplinary processes and senior‑management...
Financial institutions are increasingly relying on independent AML/CTF audits to evaluate the effectiveness of their anti‑money‑laundering and counter‑terrorist‑financing controls. The audit function employs risk‑based sampling of high‑risk transactions and verifies compliance reporting to senior management and the board. Findings are...
Customer risk‑rating models remain a cornerstone of AML, yet most banks still rely on static employment, salary and product data collected at onboarding. These legacy scores frequently misclassify customers, inflating false‑positive alerts and driving costly manual reviews. A new generation...
Step 4 of the Know‑Your‑Customer (KYC) workflow requires the account‑opening team to compile and present verified customer data to senior management or designated authorizers. The presentation must clearly flag the customer’s risk tier, include full identification documents, source‑of‑funds details, and, for...
Customer monitoring and screening are essential components of a robust KYC program, helping firms avoid onboarding criminals, money launderers, and sanctioned entities. The process involves three core screening types—Politically Exposed Persons (PEP), sanctions, and negative news—to continuously assess and re‑classify...
East African economies are slipping toward a debt trap as governments replace concessional aid with costly commercial loans and Eurobonds, pushing debt‑service costs to record levels. In Kenya, roughly 68% of revenue now funds debt repayments, crowding out credit for...
AML and CTF investigations start from a suspicion rather than solid evidence, differentiating them from standard police procedures. Compliance teams compare the customer’s risk profile with the flagged transaction and seek an explanation; a satisfactory response closes the alert, while...
The Association for Financial Markets in Europe (AFME) released a report criticizing UK banking regulations, especially the leverage ratio that forces banks to hold excessive high‑quality capital. AFME argues the rule penalises sound risk management, constrains balance‑sheet growth and hampers...
UK mortgage rates surged in April 2024 as the Iran conflict pushed borrowing costs higher, marking the sharpest market shock since the 2022 mini‑Budget. Two‑year fixed rates climbed from 4.84% to 5.84% and five‑year fixes from 4.96% to 5.75%, while...
India’s leading private banks and telecom operators are jointly phasing out traditional one‑time passwords in favor of a silent authentication system that validates the mobile number linked to a banking app against the SIM currently active on the device. The...
Diamond Banc announced the rollout of its luxury‑asset consignment program to every branch, letting owners of Rolex watches, diamonds and fine jewelry consign items worth $5,000 or more. The service includes a 15‑business‑day selling window, a national buyer network and...
Project‑finance lenders are underwriting data‑center debt worth tens of billions of dollars, using long‑term lease contracts with creditworthy tenants. The surge, driven by AI infrastructure demand, has drawn capital from corporate bonds, securitized debt and syndicated loans, with major banks...
The US broadly syndicated loan market issued about $779 billion in the first quarter of 2026, marking a 6% decline year‑over‑year and a 10% drop from the previous quarter. New‑issue loans accounted for roughly 32% of total activity, amounting to $251 billion,...
On 24 March 2026 the UK Government released its response to the Late Payment Consultation, pledging the strongest G7‑level legislation in over 25 years. The package gives the Small Business Commissioner new investigative and fining powers, caps commercial payment terms at 60 days, and...
Transak announced today that its regulated payments platform now directly supports the Canton Network, letting institutions acquire Canton Coin with credit cards, bank transfers and local payment rails. The move links a privacy‑focused blockchain that already underpins $8 trillion of tokenized...
Bank lending in the Philippines accelerated in February, with large‑bank loan balances reaching roughly $257 billion, a 9.5% year‑over‑year increase and slightly faster than January’s 9.3% pace. Business loans drove most of the growth, climbing 8.6% to about $216 billion, while consumer...
The Philippines Securities and Exchange Commission (SEC) has warned that several firms, including Aura Financing Corp., Amari Luxe Aesthetic and Wellness Clinic, and Cosmolash, are operating unregistered investment and lending schemes. Aura Finance offered loans of ₱6,000‑₱20,000 (≈$109‑$364) with a...
Open banking is expanding rapidly, with the UK now supporting over 17 million active user connections and delivering roughly £8.3 billion (about $10.5 billion) in transaction value. Irfan Ahmed of BPC argues that the real bottleneck is not regulatory compliance or talent scarcity,...
J.P. Morgan Chase provided a $765 million permanent loan to refinance Rabsky Group’s 35‑story, 1,102‑unit multifamily tower at 625 Fulton Street in Downtown Brooklyn. The new financing replaces $555 million of construction debt originally supplied by Madison Realty Capital. The development includes...
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Edward Jones markets brokered certificates of deposit that deliver APYs between 3.80% and 4.15% for terms ranging from three to 120 months, with a $1,000 minimum deposit. Because the firm sources CDs from multiple banks, its rates often exceed the...
In this episode, Scott Zambucci, Managing Director at NIA1, discusses how his background in ultramarathons and scaling tech firms informs his approach to accelerating innovation in regulated financial services. He explains NIA1's core offering—a secure, off‑estate digital sandbox that streamlines...
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Collateral is an asset pledged to secure a loan, giving lenders a claim if the borrower defaults. Common forms include residential mortgages, auto loans, home‑equity lines, and secured personal loans, while unsecured products such as credit cards require no asset....
"The problem is that USDC is just not it — they just don't ... I haven't heard a good explanation for why they're so hesitant to freeze things." -- @kaiynne @tayvano_ : They won't do it unless the US government...
Former JPMorgan Private Bank executive director Joshua Biering filed a federal petition after a FINRA panel concluded the firm deliberately impeded his move to a competitor but awarded him zero damages. Biering, who managed roughly $1 billion in client assets and...
MF1 Capital provided a $64 million construction takeout bridge loan to Borough Developers for the 99‑unit Elliot apartments in Fort Greene, Brooklyn. The financing was arranged by Landstone Capital Group, led by Leah Paskus and Shlomy Wertzberger. The development benefits from...
Reserve Bank of Australia Governor Michele Bullock announced a ban on merchant surcharging for card payments. The decision follows a two‑decade review of Australia’s electronic payments market, which regulators say has been exploited by banks and multinational schemes. The ban...
Fix‑and‑flip loans are short‑term financing that let investors purchase, renovate, and resell properties without using all their own cash. Lenders often finance up to 100% of loan‑to‑cost and 80% of after‑repair value, with closings as fast as seven days. ATTOM...
The European Central Bank released a position paper outlining a roadmap to diminish the EU’s reliance on U.S.-based Visa and Mastercard networks, which currently process more than 60% of card transactions in Europe. The strategy calls for a home‑grown, account‑to‑account...
Cross River Bank’s parent, CRB Group, announced a $50 million common equity raise from existing shareholders and investors advised by T. Rowe Price. The capital will be deployed to accelerate product development, expand the embedded‑finance platform, and meet heightened regulatory requirements....
Bank transactions often appear as pending because they undergo separate authorization and settlement phases, batch processing, and multiple security checks. Delays are especially common for interbank transfers, international wires, and check deposits, which may be held for several business days....
