Coronavirus Impact on Banks ‐ The Top Ten List

Read the blog by Mr. Sanjiv Anand, Chairman, IBS Intelligence.

The Black Swan Opportunity |Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

IBS Journal: The iconic monthly FinTech magazine

April 2020 issue out now! Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

Consolidation in the US FinTech has just begun, Intuit is buying Credit Karma for $7 bn

The US FinTech market is all set for a big-bang consolidation this year as more prominent financial firms players are on the lookout to buy for innovative and futuristic tech-led companies. In what could be the biggest deal of the month in the consumer finance industry, NASDAQ-listed Intuit is close to acquiring financial technology portal Credit Karma for $7 billion.

The development was first reported in the financial daily WSJ, where it is learned that Intuit, the maker of TurboTax, is close to buying financial technology portal Credit Karma in a mix of stock and cash and that the deal could be announced on Monday.

The Mountain View-headquartered Intuit develops and sells financial, accounting, tax preparation software and related services for small businesses, accountants, and individuals. Meanwhile, Credit Karma is into a personal finance company, and it will be interesting to understand how Intuit is going to integrate the market and the rationale behind the bid.

However, as per WSJ, Intuit might run Credit Karma as a standalone company its chief executive, Kenneth Lin, remaining in charge. The San Francisco-based company is backed by funds such as private-equity firm Silver Lake and financial-technology venture firm Ribbit Capital.

Intuit’s acquisition bid of Credit Karma also comes at a time when several other more prominent financial services companies are in the race to become the most significant global FinTech players through buyouts and collaborations instead of building new businesses from the ground up. Last week, investment bank Morgan Stanley’s acquired online discount brokerage E-Trade for a whopping $13 billion.  Last month, global payments giant Visa acquired FinTech Plaid for $5.3 billion to re-position itself in the payments space before plastic cards (credit and debit) become a thing of the past.

More prominent companies are also looking for collaborations to expand their businesses. For example, Lightspeed POS has partnered with global payments platform Stripe as part of the extended launch of its own payments product for both retailers and restaurateurs in Canada and the United States (US). Previously available in the US for the past year, Lightspeed Payments is now accessible for merchants in both countries. The idea behind the new offering is to eliminate the need for Lightspeed customers to integrate a separate payments provider.

Related Posts