Launching a Digital Bank Is Easy. Building One Isn't.
Hey Digital Banking Fanatic!
Another one bites the dust.
Western Union is shutting down its Digital Banking app, closing all accounts two months after users receive their closure notice. If you're a customer, that means withdrawing funds, redirecting payments, and saving your records before the door locks.
It's a reminder that launching a digital bank is one thing. Sustaining it is something else entirely. Western Union built its empire on cross-border remittances, but competing in Europe's crowded neobanking space — against Revolut, N26, and bunq — proved to be a different game altogether.
Even legacy giants with massive brand recognition can't simply bolt on a digital bank and expect it to stick. Distribution isn't the same as product-market fit.
And while banks are busy shutting down or doubling down, there's a quieter threat growing in the background — deepfakes are getting past the very defenses digital banks rely on. Incognia breaks down exactly how that's happening.
Worth a read. 👇 See you tomorrow!
Cheers,
INSIGHTS
📰 Incognia: Deepfakes bypass security by exploiting trust, not technology. Deepfake attacks increasingly succeed by manipulating human trust and verification workflows rather than defeating security systems. André Ferraz, CEO of Incognia, argues that effective fraud prevention requires layered identity signals, behavioral analysis, and device intelligence instead of relying solely on biometric or deepfake detection tools. Read the full article here
NEWS
🇪🇬 The National Bank of Egypt, in collaboration with Mastercard launch USD Corporate Debit Card for seamless cross-border payments. It is designed to empower Egyptian businesses, from large corporates to small and medium enterprises (SMEs), with seamless access to global commerce.
🌎 Western Union to shut down its digital bank. Customers must withdraw remaining funds, update payment details, and download account records before their accounts are closed, while Western Union's money transfer services will continue to operate separately.
🇬🇧 Revolut considers opening ‘very cool store’ in the UK as it tests a new brand experience strategy beyond digital banking. The move follows the planned opening of its first flagship store in Barcelona, which will serve as a pilot. Additionally, the company will offer European customers access to funds spanning private equity, credit and infrastructure, one of the most high-profile examples of alternative asset managers teaming up with platforms to attract retail investors.
🌍 Revolut RevTag pass now available in Apple Wallet and Google Wallet. According to the announcement, the pass allows users to display their Revolut username directly from their phone's lock screen, enabling another party to scan a QR code or copy payment details without the sender needing to open the Revolut app.
🇳🇿 Xero partners with Revolut Business on cross-border finance. The partnership is aimed at businesses with overseas operations and multi-currency transactions. Businesses can also pull bills from Xero into their Revolut Business account for payment, with transaction details then syncing back into the accounting platform.
🇺🇸 Flex appoints Chime engineering leader Michael Barrett as CTO. At Flex, Barrett will oversee the company's expanding suite of products, which currently includes AI-driven personal and business banking services spanning accounting, private credit, billing, and payments.
🇬🇧 Tandem hires Lloyd Turner as Southern Account Manager. In his new role, Turner will work directly with Tandem’s intermediary partners across the south, helping brokers access the lender’s specialist second charge proposition. Keep reading
🇲🇽 Plata appoints Michael S. Piwowar and John J. Sullivan as Independent Board Members. Piwowar and Sullivan bring deep expertise in global financial markets, securities regulation, and cross-border legal and national security matters, reflecting Plata's proactive approach to institutional maturity as it navigates an evolving financial landscape.
🇺🇸 Byline Bank and Lithic partner to expand FinTech banking capabilities. This partnership will enable Lithic to connect technology companies with Byline Bank and enable them to launch consumer and commercial card programs and banking services.
🌍 Salt Edge invests in ad platform Sientia to turn Open Banking data into customer experiences. In their joint efforts, Salt Edge and Sientia explore new ways businesses can use customer bank data to deliver more personalised, relevant, and privacy-first customer experiences.
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