And PayPal injects $11m in Swedish financial startup Tink.
The largest US Bank, JP Morgan Chase & Co., is burdened with deposit growth slowdown as customers ditch the bank for competitor lenders that pay higher interest rates, according to Gordon Smith, co-president and chief operating officer for JPMorgan Chase.
“That money is very liquid,” said Smith. “It’ll then move from that high-yield competitor to another ... but that high-yield competitor is not winning the primary bank relationship, which is obviously what’s critical.”
Estonia is amping up the crackdown on dirty money by beefing up fines for financial crimes to as much as EUR5m ($5.6m) and reviving plans by the previous government to allow assets, whose legitimate origins can’t be established, to be frozen for up to a year.
The country hit the headlines last year after suspicious activity, stemming largely from Russian clients and spanning almost a decade through 2015, was unearthed at the Tallinn branch of Danske Bank A/S. The fallout has since stretched across the continent, engulfing more major lenders and putting regulators under the spotlight.
PayPal invested EUR10m ($11.2m) in Tink, a Swedish company that enables banks and financial technology start-ups to access financial data more easily, the companies said. The San Jose, California-based payments company will use Tink’s technology to allow customers to connect their bank accounts to their PayPal accounts.
Founded in 2012, Stockholm-based Tink has developed a platform that aggregates data from thousands of banks across Europe, allowing third parties such as startups or other banks to use the information to build and power products and services.
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