MoneyLion lands a billion-dollar buyout

Other news from Cash App, Zip, and the Kansas City Fed

Author

Ghostmode.co Writers
December 11, 2024

TL;DR

Gen Digital snaps up MoneyLion for $1 billion. Cash App partners with Kendrick Lamar and SZA for exclusive ticket access, and Zip Co changes its BNPL approach to include essentials like groceries. In fintech, Hypercard launches a perk-packed AmEx card for employees, and Uptiq.AI acquires UpSwot in the name of AI-driven financial decision-making. On the tech front, Meta shows off 600M AI users, unveiled Llama 3.3, and teased big data center plans, while Google’s Sundar Pichai promises a major Search revamp in 2025. The FDIC tightens fintech oversight post-Synapse collapse, and Axos Bank partners with Way.com for car refinancing perks. In media, OpenAI eyes ads for ChatGPT, and Bluesky fosters collaboration with independent developers while courting top publishers. U.S. credit markets remain steady despite rising delinquencies, with households holding strong under tighter monetary policies.

News

(12/10) – Gen Digital acquires MoneyLion. Gen, known for its consumer brands that secure privacy, identity, and assets, expands its reach by adding MoneyLion’s credit-building tools and financial management features to its lineup. The $1 billion deal includes $82 per share in cash plus contingent value rights tied to Gen’s stock performance. [MoneyLion, Gen’s Deal Presentation]

(12/6) Cash App teamed up with Kendrick Lamar and SZA for early access to their Grand National tour tickets, sidestepping the usual credit card presale partners like AmEx or Citi. Known for offering a prepaid debit card without bank account requirements, Cash App aimed to democratize the ticket-buying process. Users unlocked perks like early ticket access and merch discounts, but many grumbled about high fees and unclear funding logistics. [NYT]

(12/6) Jordan Pandolfo of the Federal Reserve Bank of Kansas City reports that the U.S. consumer credit market shows "limited evidence of mounting stress," even after years of monetary policy tightening. Subprime credit card delinquency rates have risen by 5.6 percentage points, but default risks remain historically low, and revolving balances are still below pre-pandemic levels. Stabilized bank default forecasts suggest subprime delinquencies could plateau soon, bolstered by recent federal rate cuts. This indicates households are holding steady despite higher borrowing costs. [Kansas City Fed]

(12/6) Hypercard, a new FinTech focused on payment innovation, launches its first consumer credit card on the American Express network. Designed for employees, the card offers company perks like gym memberships and meal stipends with top-tier rewards such as TSA PreCheck® credits, Priority Pass Lounge Membership, and exclusive dining offers. Co-founded by Marc Baghadjian and Nikolas Ioannou, Hypercard aims to simplify expense reimbursements and make employee benefits more accessible. Backed by heavyweights like OpenAI CEO Sam Altman and Netflix Co-founder Mark Randolph, this debut signals a fresh, perk-packed option in the payments market. [IBS intelligence]

(12/6) Meta CEO Mark Zuckerberg celebrated a big year for the company's AI initiatives. Meta AI now boasts 600 million monthly users, with Llama becoming an industry darling, racking up over 650 million downloads in 2024. Closing the year with the release of Llama 3.3, a 70-billion-parameter model that rivals much larger counterparts in efficiency and performance, Zuckerberg also teased Llama 4. The company plans to train future models in a massive 2-gigawatt data center under construction in Louisiana, underscoring Meta’s long-term commitment to cutting-edge AI. [Zuckerberg on Instagram]

(12/6) Google CEO Sundar Pichai revealed that Google Search will undergo "profound" changes in early 2025, tackling more complex queries but facing tougher innovation challenges as the "low-hanging fruit is gone." At the New York Times DealBook Summit, Pichai defended Search’s value in combating inauthentic online content but struggled to address concerns about its impact on creators and content devaluation. [Search Engine Journal, NYT DealBook Summit]

(12/5) Zip Co, a leading BNPL provider, is evolving its approach for what it dubs "BNPL 2.0," focusing on necessities like groceries and utilities instead of splurges. At a payments conference, Chief Product Officer Rory Herriman described Zip’s 3-pronged BNPL strategy, their 3 external channels of operation, and their 3 focus areas. [Tearsheet]

(12/5) X introduced a new analytics feature that breaks down engagement into followers versus non-followers. This feature, available for X Premium users, aims to provide creators with insights to better understand audience dynamics. However, the algorithm-heavy "For You" feed often favors non-follower interactions, which complicates efforts to build a dedicated audience. As creators push for better visibility among their followers, X may face pressure to tweak its approach, following moves similar to those of competitors like Threads. [Social Media Today]

(12/4) Uptiq.AI, an enterprise AI platform, has acquired financial data integration firm UpSwot for an undisclosed sum. UpSwot’s data gateway, which streamlines access to financial data across categories like accounting and CRM, will now enhance Uptiq’s AI Workbench. This integration aims to improve decision-making in loan origination and portfolio management. [Fintech Futures]

(12/4) Following the collapse of Synapse Financial Technologies, the FDIC is rolling out a direct monitoring system for fintech companies partnering with banks. The system aims to identify risks early, ensuring consistent oversight even if fintechs change banking partners. This move follows heightened scrutiny of fintech-bank collaborations, including proposed rules to tighten record-keeping and expand the definition of brokered deposits. Synapse’s April collapse, which left customers without access to funds, spotlighted vulnerabilities in the "banking as a service" model and triggered regulatory action against sponsor bank Evolve Bank & Trust. [Bloomberg]

(12/4) Axos Bank teamed up with Way.com to sweeten the deal for customers refinancing their vehicles. The partnership unlocks perks like cashback on gas, parking, car washes, and repairs via the Way app, plus extras like glass breakage protection and job loss coverage. Axos’s CEO called it a "synergy" for helping consumers manage both finances and car expenses, while Way claims customers save up to $1,500 annually on car-related costs. [Auto Fin Journal]

(12/3) OpenAI is considering introducing ads in products like ChatGPT, which could generate significant revenue but risk eroding user trust if ads aren't clearly marked. With AI makers like Microsoft and startups like Adzedek already experimenting with ad integration, OpenAI aims to be "thoughtful" about implementation while balancing its massive operational costs and investor expectations. [Axios]

(11/29) Bluesky highlights its strong engagement, showcasing publishers like The Boston Globe, The Guardian, and The New York Times. The platform emphasizes its commitment to not demoting links and encourages independent developers to create apps and extensions on its network, offering a collaborative approach to social media. [Bluesky]

Other stuff we’re reading and listening to

(12/9) NCUA reports Q3 2024 credit union system growth in loans, assets, and net worth, despite rising delinquencies and a 4.7% drop in net income. [Banking Exchange]

12/9 Omniwire launches a customizable white-label neobanking platform to simplify fintech entry, accelerate deployment, and streamline compliance for businesses.[Newswire]

(12/6) Google sued the Consumer Financial Protection Bureau (CFPB), contesting its decision to supervise Google's payments division over alleged consumer risks tied to a discontinued peer-to-peer payment product. Google called the supervision "government overreach" and argued it’s unreasonable to regulate a non-existent product. [CNN]

(12/5) Lumin Digital raises $160M in equity led by Light Street Capital, NewView Capital, and Partners Group to expand its cloud-native digital banking platform, which provides real-time spending insights and supports features like card controls, bill payments, and remote deposits. [FinTech Futures]

(12/4) ValidiFI partnered with DigiFi to integrate predictive bank account and payment intelligence tools, enhancing credit risk assessment, fraud prevention, and efficiency for digital lenders. [PR Newswire]

(12/4) Advia Credit Union partners with Upstart to expand personal lending with AI-driven, digital-first experiences. [Business Wire]

(12/4) FIFA and Bank of America expand partnership to power the inaugural 32-team FIFA Club World Cup 2025™, aiming to enhance fan engagement and drive economic impact across 11 US cities. [FinTech Global]

(12/4) Solidarity Community Federal Credit Union partners with Mahalo Banking to enhance digital banking with streamlined processes, including online account opening and loan initiation, neurodiverse features, and robust security measures. [FinTech Futures]

(12/3) Carey Ransom, president of Operate and managing director of BankTech Ventures, urges reimagined banking regulations to position community banks as innovation hubs while ensuring system stability. [The Financial Revolutionist]

(12/1) Meta will require financial advertisers targeting Australians on Facebook and Instagram to verify their identities starting in February, aiming to curb scam ads featuring fake celebrity endorsements. Advertisers must provide Australian financial services license numbers or government-issued IDs, with enforcement taking six weeks. This follows $135 million in reported investment scam losses in Australia this year, $35 million from social media alone, and Meta's recent release of facial recognition technology to detect fake celebrity endorsements. [Guardian]

And, of course, we love to support our friends up north who have a Canadian fintech-focused newsletter. Be sure to check it out!

Canadian Fintech Affiliate: That's a wrap 2024✌️

What's trending in Q1, looking back at my predictions for 2024 and what I expect to see in 2025.

cameronmillband.substack.com/p/canadian-fintech-affiliate-thats

Jobs

Spotlight of the week:

EarnIn, a financial services platform offering early access to wages, is "seeking an innovative, customer-focused, and results-driven Chief Marketing Officer (CMO) to join [their] Executive Leadership Team (ELT)."

This role involves driving growth, scaling customer acquisition, and fine-tuning the company’s branding in a fast-paced, consumer-centric environment, with a $375,000–$475,000 salary (plus equity). [EarnIn]

Other jobs:

People Moves

  • Figure Technology Solutions appoints Macrina Kgil as Chief Financial Officer. [BusinessWire]

  • Pipe strengthens its leadership team with four key appointments. [FinTech Futures]

  • Mark Homeier was hired as Head of Marketing and Business Development at Interlace. [Pulse2]

  • Arta Finance appoints Melissa-Ann Chan as Chief Marketing Officer. [Eastern Progress]

  • OpenAI Names Coinbase Marketing Chief Kate Rouch as First CMO. [PYMNTS]

  • BriteCap Financial welcomes Dave Lafferty as Chief Credit Officer. [Chicago Star Media]

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