UK-based neobank Revolut has achieved two new steps in its global growth plan: acquiring a Cyprus crypto license, which allows it to offer crypto services across Europe, and getting approval for its Mexican banking license. It ultimately intends to acquire a licensed bank in the US. Neobank “super apps” offer huge suites of financial products and services, including global transfers. If they reach the right segments, they could pull more customers away from smaller FIs—particularly Gen Zers (Revolut’s focus) and Latin American consumers (Nubank’s core market).
Public responses are in for the Consumer Financial Protection Bureau’s (CFPB’s) request for comment as it prepares to revise its open banking rule. The revision comes as a result of the Trump administration's rollback of Biden-era rules, which has once again shaken up a decade-long debate. Banks have good reasons to be upset with the original rule and are using this rulemaking opportunity to relitigate the issues they lost on. Their less fintech-friendly angle risks rupturing industry relationships that were crucial to the private-sector solution. However, it gives them a defensive posture to protect what they see as their business interests under threat.
Plaid introduced a credit risk score based on real-time cash flow data as it dives further into credit scoring amid an industrywide push to monetize formerly unused or underused data sources. The fintech, a huge player in data aggregation, has diversified its business interests as aggregation has commoditized. Consumer-permissioned financial data shows promise as a new pipeline for consumer credit information. But the introduction of new forms of credit data doesn’t guarantee anything will change for consumers who struggle to access credit.
MrBeast filed to trademark “MrBeast Financial.” The filing’s contents suggest that an app and a range of financial services—including banking and a crypto exchange—may be in the works. Entering financial services as a provider (e.g., launching a crypto trading platform under a company owned by MrBeast’s enterprise or starting a branded neobank) would be an entirely different world from media and merchandising. The threat to banks based on generational appeal is already a problem. And whatever happens with MrBeast Financial, that problem keeps getting worse.
A minor technical failure took down Amazon Web Services (AWS) for several hours. Disrupted financial apps reportedly included Chime, Coinbase, and Venmo. Some financial institutions (FIs) were also reportedly affected.A mistake in a digital transformation project or a poor choice of vendor can have far-reaching consequences for a bank’s customer relationships and compliance with recordkeeping regulations. The solution for banks that can afford it has been redundancy through hybrid deployments to the cloud and on-premise.
TransUnion has introduced new pricing for credit scoring for mortgage borrowers, undercutting the pricing of FICO’s new mortgage credit scoring model: FICO charges resellers $10 per score, while TransUnion charges $4. The market for consumer credit data and how it’s packaged is hotly contested, and the government has helped facilitate competition. In addition, the fintech Plaid, a newcomer to credit reporting, just introduced a cash flow–based scoring model. This competition is good for consumers, because it creates more ways for them to access credit. And it should also be good for data buyers, including banks, because it will mitigate prices and encourage the development of more sophisticated scoring models and data products.
Klarna rolled out Klarna balance and Klarna Card in the UK. Credit cards aren’t as big a market in the UK as they are in the US, but issuers should be concerned by what Klarna calls its “balances.” Klarna is a real bank in the EU and recently was granted an Electronic Money Institution license in the UK. That means even without getting a bank charter in the UK—or the US for that matter—it can use its existing bank infrastructure to offer a robust suite of bank-like services in the style of Cash App or even Apple Wallet.
BMO announced that it would sell 138 branches—nearly all in the Mountain West and Midwest—to First Citizens Bank. The sales includes about $5.7 billion in deposits and about $1.1 billion in loans. Customers still value branches: 55% of respondents to EMARKETER’s US Banking Consumer Habits survey said “branches near me” ultimately led them to purchase banking products or services. While digital services enable national reach with little additional cost, physical connection with consumers and small-business customers is crucial. And for banks scaling to the degree that they offer commercial banking services to corporate customers, an in-person presence is mandatory.
Corporate dredit quality is causing investor consternation even as bankers overall appear optimistic. While risks to the economy abound, very few headlines reflect it. Faint echoes of the 2023 banking crisis—in which contagion was narrowly averted and economic cataclysm prevented—do nothing to calm investors’ nerves. Pockets of consumer worry haven’t metastasized, and there’s been no clear sign of a commercial credit meltdown. But bankers should follow the undercurrents in anticipation of the next crisis, even while the economy appears “fine.” The 2023 regional banking crisis seemingly came from out of nowhere, even though the signs were there. The subsequent need for the government’s emergency actions as well as frantic mergers among regional banks show how shaky the foundation can be.
Erebor has received conditional approval for a national bank charter. It will be a digitally native competitor to lenders that serve the “innovation economy” and some specific industries: Erebor will focus on B2B services for AI, defense, crypto, and manufacturing companies, with offerings for high-net-worth individuals tied to those sectors. The biggest threat to traditional banks is that payments technology quickly advanced beyond what they can support or understand. Real-time payments solve the instant settlement problem that crypto provides for domestic transactions. But the next generation of changes to payments infrastructure is coming—and very few institutions are ready.
The federal government has been shut down for over two weeks as funding bills keep hitting roadblocks in the Senate, and it could take weeks to resolve. Some financial institutions have responded quickly, while others have been slow or off the mark. The fact that a lengthy government shutdown would weigh on federal government employees’ and contractors’ finances poses a risk to bank and credit union balance sheets. But it’s also an opportunity for them to deepen customer trust.
Small business customers increasingly expect “best-in-class, highly sophisticated digital capabilities” and integrated experiences, according to a Finovate interview with Shruti Patal, chief product officer for business banking at U.S. Bank. But small businesses have historically been underserved digitally by their financial institutions, especially relative to consumers. U.S. Bank’s moves to modernize its small business banking digital experience are crucial to keeping its offering competitive against nonbank software providers, fintechs, and other banks. Its partnerships and all-in-one model for its business banking platform keep it in the running.
In today’s episode, we talk about whether the “American Dream” is less achievable, or just different, how this new economic reality has reshaped consumer behavior, and how brands are marketing aspiration differently. Join the discussion with host and Head of Business Development, Rob Rubin, Senior Director of Briefings, Jeremy Goldman, and Analyst, Paola Flores-Marquez.
JPMorgan Chase, Wells Fargo, Citibank, and Goldman Sachs reported earnings for Q3 2025. JPMorgan, the largest, reported revenues of $47.1 billion, beating analyst estimates, and raised its full-year outlook for net interest income. All beat estimates on adjusted earnings. Big banks projected a characteristic mix of optimism and caution in Q3. Banks have ample headroom for growth, but earnings will suffer if economic conditions worsen, consumer credit declines, markets fall, or deals slow.
A recent Bank of America study highlights the diverging fortunes of lower-income versus middle- and higher-income consumers. Wealthier segments are benefiting from rising asset prices and wages, while inflation and muted income growth is putting less well-off segments in a precarious position. Consumers’ overall resilience masks differences between income segments, which is important to strategic planning and risk management as banks anticipate macro risks. Higher-income segments are traditionally lower risk, even when they carry high balances—but with a sharp reversal in economic conditions, that could quickly change.
47% of US banking decision-makers say their institutions have already rolled out generative AI, up from 10% in 2023, said data from EY-Parthenon.
Technology modernization and attracting younger consumers are key to community banks’ survival over the next decade, according to a discussion between Treasury Secretary Scott Bessent and Federal Reserve vice chair for supervision Michelle Bowman at a Fed conference. Community banks face existential threats. Consolidation in the community banking market has been substantial. Community bank leadership is aging, and banks’ small scale makes it difficult to compete in a digitally interconnected banking market. Their strategies need to account for what’s changing.
EQ Bank launched a banking platform for small businesses, according to fintech.ca. It includes a business checking account with no monthly fees or minimum balance, many types of transactions for free, up to 10 sub-accounts, and Canadian customer support. EQ Bank has created a huge opportunity for itself given the size of Canada’s addressable market for small businesses. Going head to head with Canada's large banks would be challenging, but small business services from a direct bank are compelling play: CIBC’s Simplii does not offer small business banking and Tangerine’s are limited.
The biggest banks will spend $6 billion or more on marketing in 2025, or 0.10% of their total asset value, per an analysis of the American Bankers Association Bank Marketers Survey in the ABA Banking Journal. On average, 32% of banks’ marketing budgets were allocated to new customer acquisition—more than any other allocation. Bank marketers are clearly focused on digital advertising, and with greater resources and scale, the largest institutions won’t find it hard to drive awareness, attract new customers digitally, and dominate the conversation. Community banks will need to be scrappy.
JPMorgan Chase spends $2 billion per year on AI and finds an equal amount of cost savings as a result, said CEO Jamie Dimon in a recent Bloomberg TV interview. During its April investor day, JPMorgan forecast spending $18 billion on technology in 2025. JPMorgan is increasing the gap between the haves and have nots in bank technology. AI development in financial services, supported by modern platforms, is outrunning nearly everyone.