In today’s top news in digital-first banking, FIS is working with NYDIG on bitcoin, while Zelle processed 392 million transactions in Q1 2021. Plus, big banks in the U.S. are making moves to unload cash.
FIS said it can equip banks with an “industry-first solution” to provide clients with the ability to purchase, sell and keep bitcoin by way of their bank accounts. NYDIG will oversee the platform for managing bitcoin transactions under a deal with FIS. “The new solution taps into the advanced functionality of the FIS Digital One Mobile solution to allow banks to provide bitcoin services via a seamless, easy-to-use digital experience — enabling them to drive fee income and better attract and retain customers,” FIS said in an announcement.
Business keeps booming on Zelle, the digital payments network, which processed 392 million transactions in Q1 2021. Early Warning Services, Zelle’s parent, said in an announcement that the payments network processed $106 billion in Q1. The company said its base of small and medium-sized businesses (SMBs) keeps serving as “one of the fastest growth areas for the Zelle Network.” Early Warning Services is owned by seven banks — Wells Fargo, US Bank, PNC Bank, J.P. Morgan Chase, Capital One, BB&T and Bank of America.
Large banks in the United States are making moves to unload cash, and have requested that some business customers move money from deposits to money market accounts. Weakened demand for loans, brought together with a jump in deposits, has had a negative knock-on impact on bank’s profits, capital mandates, balance sheets and return on equity. It is an unnatural move for banks to turn down deposits, the CFO of one major bank said during a March earnings call, noting that the practice “cannot be good for the system in the long run.”
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Selected by EFXA