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RETAIL BANKING | Staff Reporter, Singapore
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Weekly Global News Wrap Up: JPMorgan faces deposit growth slowdown; Estonia to expedite crackdown on Europe's $230b dirty money scandal

And PayPal injects $11m in Swedish financial startup Tink.

From Reuters:

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.”

From Bloomberg:

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.

From CNBC:

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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