The Weekly Wrap: all you need to know by Friday COB | May 5th

By Puja Sharma

The Weekly Wrap is published every Friday and recaps the week’s main stories and deals, as well as upcoming events and announcements. For Prime subscribers only.

The Big Story

US multinational JPMorgan Chase acquired First Republic Bank from the US Federal Deposit Insurance Corporation (FDIC). Approximately $92 billion of insured and uninsured deposits have been assumed by JPMorgan Chase, including $30 billion in large bank deposits. Branches reopened on Monday, 1 May, and normal operations resumed.

The bank will pay $10.6 billion to the FDIC, according to media reports. By undertaking this transaction, JPMorgan Chase contributes to the US financial system’s strength and execution capabilities, minimizing the cost to the FDIC. The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13 billion.

JPMorgan Chase CEO and chair Jamie Dimon said, “This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy, and it is complementary to our existing franchise.”

Deposits will continue to be insured by the FDIC and the deal also sees JPMorgan Chase acquire approximately $173 billion of loans and approximately $30 billion of securities but not First Republic’s corporate debt or preferred stock.

The acquired First Republic business will be overseen by JPMorgan Chase’s consumer and community banking arm. The recent failure of the San Francisco-based bank following Silicon Valley and Signature represents the second-largest in US history.

Deals of the week

• m3ter raises $14m Series A funding for pricing operations platform
• Nomba raises $30m to streamline payment solutions
• Standard Chartered selects Mozrt to boost payment capabilities for US banks
• Ansa emerges from stealth, secures $5.4m funding
• Rêv and Searchlight partner to acquire Netspend for $1b
• Revolut enters LatAm market with launch in Brazil
• Tarabut Gateway raises $32m, aims to boost Open Banking in KSA
• Kreditz raises €10m equity to expand credit scoring services
• allpay cards invests £1.5m into new technology
• Deutsche Bank to acquire Numis in £410m deal
• Cashfree and YES BANK to offer global payment collection service to Indian exporters
• Onfido brings identity verification service for Salesforce

Be on the lookout for

NCR Digital Banking is hosting a Financial Fitness Challenge for its banks and credit unions, offering expanded financial health-focused tools and resources for clients. The goal is to drive digital banking awareness, adoption, and engagement to ultimately help end customers and members improve their financial wellness. The challenge kicked off at the beginning of April in honor of National Financial Literacy Month and runs through July.

“More customers and members than ever need support with their financial health in light of current economic turbulence, and trusted community banks and credit unions are ideal partners to help them set and achieve relevant, achievable goals,” said Doug Brown, president of NCR Digital Banking. “To effectively do so, institutions must be able to analyze and leverage their data and offer personalized, contextual digital tools. We’re proud to have so many clients embrace this important challenge, showcasing dedication to their customers’ financial fitness.”

The challenge will recognize winners in three categories: adoption, the highest percentage growth in offline to online digital banking users; active use, the highest percentage growth in inactive to active digital banking users; and awareness, the most creative marketing campaign over the three months.

Brown continued, “In addition to providing significant benefits to end customers and members, prioritizing financial fitness has also been proven to broaden wallet share for institutions and maximize profitability the of household relationships.”