In today’s top news, TurboTax creator Intuit is reportedly buying Credit Karma, and JPMorgan Chase is looking to open a digital bank in the U.K. by the end of the year. Also, a wire fraud victim is suing his bank for allegedly not having anti-fraud protection in place.
Intuit is close to finishing a deal to buy personal finance portal Credit Karma for around $7 billion in both cash and stock. The deal will push Intuit, which makes the online tax filing service TurboTax, further into the realm of consumer finance.
JPMorgan is talking with London regulators about the idea of opening a digital bank in the U.K. by the end of the year. Chase usually prefers to nurture its domestic market rather than pursue international operations, but this comes at a crucial moment for London, which is preparing to see an exodus of financial institutions moving out due to Brexit.
We have used clocks to measure time for hundreds of years, and mobile devices and apps over the last decade to save as much of it as we can. But Karen Webster says that in this decade’s Connected Economy, consumers will want devices and apps that do more than save time, but also compress as much of it into every 24-hour day as possible. It’s why, she says, time will be central to the connected economy innovations that will emerge over the next decade and beyond.
Founded as Philips Lighting 128 years ago and spun off as Signify in 2016, the company today considers the sun to be its primary competitor in the illumination market. And, as its U.S. CEO Roger Karner tells Karen Webster, its next big challenge is helping to light up the connected economy. It’s about more than the tech making it happen, he says — it’s also about building the legion of use cases that make it relevant.
After losing $450,000 due to wire fraud, Frank Krasovec, chairman of Dash Brands, owner of Domino’s Pizza franchises in China, is suing PlainsCapital bank in Dallas, claiming it did not have anti-fraud protocols in place.
Wells Fargo agreed to pay a $3 billion settlement with regulators over a scandal involving the creation of fake accounts, and is finalizing settlements with the Justice Department and the Securities and Exchange Commission.
Two deals last week shined a spotlight on the financial service industry’s “build vs. buy” debate, settled firmly on the side of “buy.” For Morgan Stanley and LendingClub, the respective acquisitions of E-Trade and Radius Bancorp show how “one-stop shops” and platforms are all part of a long-term road map for financial services.