Current taps DeFi in a bid that hybrid is the future of finance 💸; Despite the global downturn, venture funding in Europe remains strong 💪; A metaverse for kids? 🤯
Good Morning FinTech, 12 April
Good day Everyone,
And happy Tuesday! I hope Monday wasn’t too harsh for you. To make the most of your day today, here’s a mix of 3 really interesting FinTech stories I’ve prepared for you today:
Current taps DeFi in a bid that hybrid is the future of finance 💸
The news 🗞 US neobank Current plans to incorporate elements of decentralized finance aka DeFi into its consumer-focused lineup by rolling them out on a “hybrid finance” basis, according to American Banker reports.
The USP 🥊 Founded in 2015, Current began its life as a teen debit card controlled by parents, but later expanded to offer personal checking accounts powered by the same underlying banking technology. Like a range of modern-day “neobanks,” or digital banks, the Current app offers a baseline of standard features like free overdrafts, no minimum balance requirements, faster direct deposits, instant spending notifications, banking insights, free ATMs, check deposits using your phone’s camera and more.
In April 2021, Current raised $220M in a Series D funding round, valuing the challenger bank at $2.2 billion.
HyFi? 🤔 HyFi, or hybrid finance is a combination of decentralized finance & centralized finance. DeFi enables consumers and companies to engage in peer-to-peer (P2P) transactions without going through financial institution (FI) intermediaries. Instead, the technology relies on blockchain recordings and stablecoins to support activities.
Traditional banking activities fall under what is called centralized finance (CeFi).
Current is hence pursuing a blend of both worlds, trying to expose their customers to aspects of both DeFi and traditional banking.
Current has been experimenting with DeFi since 2018. Yet, today might be the perfect time to unlock value & differentiate itself from the competition. Here’s the takeaway: