Today in FinTech: Volt Gives Up Bank License; Wells Fargo, Zelle Suit Dropped

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In today’s FinTech news, Aussie FinTech Airwallex is moving into New Zealand with its multi-currency digital wallets, while Aussie bank Volt hands back its license. Plus, Seattle resident Luke Hartsock dropped his class-action lawsuit against banking giant Wells Fargo and digital payments network Zelle.

Airwallex Intros Global Payment Services in New Zealand

Financial services startup Airwallex is launching in New Zealand to offer businesses a transparent, faster and more cost-effective alternative to legacy financial institutions. Headquartered in Melbourne, Australia, Airwallex provides multi-currency wallets in over 11 currencies and local payouts in over 30 currencies. 

Volt Exits Banking Sector; Will Return License, Funds

Australian challenger bank Volt is leaving the banking industry and returning more than $100 million to its estimated 6,000 customers. The Australian Prudential Regulation Authority (APRA) is monitoring the process, which is expected to conclude by July 5. Volt is the second Aussie challenger bank to fail following Xinja, which was granted a license in 2019. 

Class-Action Lawsuit Dropped Against Wells Fargo, Zelle

Seattle resident Luke Hartsock dropped his class-action lawsuit against banking giant Wells Fargo and digital payments network Zelle for allegedly failing to protect customers. Zelle is a product of Early Warning Services, LLC, a FinTech owned by Wells Fargo and six of the other biggest U.S. banks — Bank of America, BB&T (now Truist), Capital One, JPMorgan Chase, PNC Bank and U.S. Bank. 

Singapore’s Funding Societies Acquires CardUp

Small business debt investment platform Funding Societies is acquiring Singapore-based digital financing platform CardUp and will take over its payments capabilities, online payments acceptance, invoice automation tools, and licenses and integrations with third-party business software. Funding Societies said that CardUp’s payment services will complement its lending offerings. 

EU Neobanks Lean on Innovation, Consolidation to Bolster Growth

Consolidation and innovation are two distinct trends emerging in Europe’s neobank space as saturation hangs in the distance. Rapid growth is now giving way to consolidation, as was the case when Norway’s Lunar announced that it was acquiring Finland’s Instabank. Bunq’s acquisition of expense management app Tricount enabled the Dutch neobank to add the Belgian startup’s 5.4 million users to its existing base.