Bank-FinTech partnerships can provide valuable guidance and technology for financial institutions to modernize and even dip their toes into emerging tools like blockchain. This week’s roundup finds fresh support for collaboration to boost open banking adoption.
Customers Bank Embraces Blockchain With Tassat
With a focus on B2B payments digitization and efficiency, Customers Bank has reportedly joined forces with blockchain technology firm Tassat. A press release said the financial institution is joining Tassat’s TassatPay Network to enable real-time B2B payments, with support for integrated legacy payment rails, allowing the bank to more easily modernize and enhance its B2B payment offering. Tassat tokenizes U.S. dollar deposits to facilitate real-time transactions, with API support to allow banks to integrate the technology into their existing systems. “B2B payments have lagged behind consumer payments in innovation, presenting a huge opportunity for digital transformation,” said Sam Sidhu, vice chair and chief operating officer, Customers Bank. “We are eager to partner with TassatPay Network as the cornerstone of our B2B payments strategy.”
Japan’s SMBC Signs Onto Contour’s Banking Network
Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has reportedly signed up for Contour’s banking and corporate ecosystem to drive trade finance modernization. An announcement said SMBC is joining the full network after testing the ecosystem for a year. The network aims to digitize letter of credit settlement processes and inject automation within the trade finance workflow using R3’s blockchain platform, Corda. “We are delighted to see a growing number of banks across the world align with our vision that international trade needs to eradicate paper-based processes,” said Contour CEO Carl Wegner. “Not only are they extremely outdated but they now pose a significant security risk. A digital solution is no longer a competitive advantage — it is the future industry standard.”
SIA Streamlines Payment Infrastructure Connections
SIA, a European payments technology company, is making it easier for banks, FinTechs and corporates to loop into national and international payment platforms directly, a recent announcement revealed. The company launched its new network service that eases connectivity between cloud-based applications and payment networks, with a variety of use-cases in mind, including the public sector, insurance and financial services and more. The network supports direct access to EBA CLEARING’s real-time payments network RT1, as well as TIPS and card networks.
Amount Lands Unicorn Status For Banking Tech
Amount, whose business model is built off of bank-FinTech collaboration, raised Series D funding that propelled the company to unicorn status. The company offers financial institutions technology to efficiently modernize their operations and elevate product offerings, including POS lending and omnichannel banking. The company offers features like automated fraud checks. “The additional capital clearly demonstrates the value our investors see in Amount’s ability to accelerate digital transformation in the banking and ecommerce industries through our robust retail banking suite and buy now, pay later platforms,” said Adam Hughes, CEO of Amount.
Tink Acquires Open Banking Competitor
Tink, a Sweden-based open banking platform, has acquired its Germany-based competitor FinTecSystems for an undisclosed sum, Bloomberg recently reported. The takeover “complements Tink’s offering very well,” the company’s co-founder and CEO Daniel Kjellén told the publication, highlighting FinTecSystems’ data analytics, account aggregation and open banking payments capabilities. It’s an acquisition that reflects the continued expansion and adoption of open banking as more FinTechs embrace the market opportunity and new use-cases in the framework.