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FinTech's Future is Now: Wise Expands in Mexico, Trump starts TruthFi, AI Reshapes Banking.
theFintech.Guru - Week 5 of 2025
Wise’s bold move into Mexico’s $60B remittance market signals a seismic shift in cross-border payments. Meanwhile, AI is revolutionizing financial services, and crypto firms race to secure regulatory approval in Europe. With Mastercard and Visa entangled in legal battles, the competition for dominance in payments and banking is fiercer than ever. Who will adapt, and who will fall behind?
🚀 Hottest News
Big moves in Europe and Latin America shake up the FinTech landscape.
🇲🇽 💸 Wise Expands to Mexico's $60B Remittance Market · Wise takes on a new challenge, aiming to disrupt Mexico's remittance system.
🇪🇺🚀 Neonomics Acquires Ordo to Boost UK Expansion · Norwegian FinTech Neonomics sets its sights on the UK's A2A payments market.
🇲🇽🥳 Nu Mexico Hits 10 Million Customers · Nu's digital model fuels impressive growth, doubling its Mexican user base in a single year.
🇪🇺🛡️ Bitpanda Secures Coveted MiCAR License · A major win for crypto regulation as Bitpanda becomes the first major player to obtain the EU license.
🤖 AI Power Plays
Artificial intelligence is transforming FinTech, from personalized banking to automated fraud detection.
🇺🇸🗣️ DEUNA Unveils Commerce-Aware AI · Data chaos meets its match as DEUNA's AI promises real-time insights for growth.
🇬🇧🤖 UK Financial Firms to Increase AI Investment · Generative AI takes center stage, with UK firms planning a 16% budget allocation
🇺🇸👨💼 Goldman Sachs Rolls Out AI Assistant for Employees · From summarizing emails to translating code, Goldman Sachs embraces AI for enhanced productivity.
🧙 The Guru's Take
The history of remittance systems is deeply intertwined with global economic shifts. Western Union, established in 1851, pioneered cross-border money transfers using emerging infrastructure like railroads and telegraphs, serving migrants and laborers who lacked alternatives. During the Mexican Bracero program (1942–1964), fees for sending remittances often reached 10–15%, reflecting limited competition in the market.
Financial institutions further compounded costs by embedding fees in unfavorable exchange rates—a practice that persisted for decades.
By 2003, the World Bank noted remittances remained the “most expensive payment service globally,” averaging 15% in transaction costs.
Fast forward to today. Traditional banks still rely on SWIFT, a system built in the 1970s that routes a simple transfer through 3-5 intermediary banks, each taking a bite. That’s where innovators shine, and traditional banking lacks.
And the history’s on the disruptors’ side. When M-Pesa dismantled Kenya’s banking system in 2007, it wasn’t because regulators were kind—it was because people demanded better. Wise in Mexico is the same playbook. If regulators block it, they’re not “protecting stability.”
They’re protecting a 150-year-old shakedown.
The revolution’s here—whether the suits like it or not.
🌶️ Hot Takes
Controversial closures, legal battles, and Trump's return to the spotlight ignite debate in the FinTech world.
🇺🇸💰 Trump Media Launches Truth Fi · Trump's foray into financial services, including crypto and ETFs, sparks both excitement and skepticism.
🇺🇸💳 Mastercard Settles Pay Discrimination Suit for $26M · A hefty price tag for alleged discrimination raises questions about equity in the financial sector.
🇬🇧💸 HSBC Shuts Down International Payments App Zing · A year after its launch, HSBC's Zing app faces an abrupt closure, highlighting the challenges of innovation in traditional banking.
🌍 Region Spotlight: Latin America
Brazil's Pix system continues to thrive, while new partnerships and regulations shape the future of FinTech in the region.
🇧🇷💸 Pix Transactions Exceed 6 Billion Monthly · Brazil's instant payment system shows no signs of slowing down.
🇧🇷🏦 PagBrasil Gains Regulated Payment Institution Status · PagBrasil's new license paves the way for innovative payment products and features.
🇧🇷💳 Bybit Launches Bybit Pay in Brazil · Crypto meets fiat as Bybit Pay integrates with Brazil's Pix system.
From Latin America to Europe, AI advancements to regulatory hurdles, this week's FinTech news paints a dynamic picture of innovation and disruption. The race for market share in payments, open banking, and digital assets is heating up, and only time will tell which players will emerge victorious.
That's it for week 5 of 2025, folks.
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