Welcome to TechCrunch Fintech! Last week’s news was a bit lighter due to a holiday in the United States, but there were still noteworthy fintech-related updates, including the ongoing drama surrounding Synapse and partner Evolve Bank, as well as Revolut’s record-breaking year.
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The big story
Evolve Bank’s data breach continues to impact the fintech industry, with Yieldstreet confirming that some of its customers were affected. Additionally, author Jason Mikula reported receiving a cease-and-desist letter from Evolve Bank, preventing the sharing of files from the dark web with impacted fintech companies. A group of senators has urged Synapse, Evolve, and other partners to restore customers’ access to their funds immediately, raising concerns about missing customer funds and implicating investors like Andreessen Horowitz (a16z).
The latest development in the Synapse saga involves a dispute between Synapse and MongoDB, jeopardizing efforts to return funds to millions of customers who have been unable to access their money for weeks due to apps like Juno and Yotta.
Analysis of the week
Revolut reported a record full-year pre-tax profit of $545 million in 2023, with CEO Nikolay Storonsky expressing confidence in securing a British bank license. The company hinted at a potential IPO in its annual report, following its impressive growth in customer base and valuation.
Dollars and cents
Investors are showing interest in Indian wealth tech startups as the middle class seeks to diversify investments. Premji Invest and Lightspeed Venture Partners are in talks to lead funding rounds for Dezerv and Centricity respectively.
What else we’re writing
Devin Coldewey discusses the recent breach of OpenAI’s systems and the implications for AI companies as prime targets for hackers, emphasizing the importance of data security in the AI industry.
High-interest headlines
Trever secures €2.4 million seed investment to enhance digital asset infrastructure in Europe, while MUFG invests in Thailand-based fintech unicorn Ascend Money.
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