This week's list of top stories in fintech:

Google Kills the Google Plex

• Google is abandoning plans to offer the Google Plex checking account, first announced Nov 2019
• Google wants to focus on delivering digital enablement, not offer services themselves
• Consumer showed strong interest
• Current partners were caught by surprise
• Big banks not joining might have pushed Google to make this decision

Return of The Postal Bank: Another New Rival or a Bad Joke?

• New pilot is being rolled out in four cities
• One service so far: cashing checks under $500 in exchange for a visa gift card
• Could soon include bill payments, ATM, wire transfers, improved money orders
• Bank lobby groups are not happy

How card issuers inadvertently fueled the buy now/pay later boom

• Card issuers clamped down on credit to new customers
• Credit card issuers have changed fees and rewards, but personalization is top of mind for consumers
• Cash flow control also a big concern, BNPL allows consumers to spread our cash

Facebook down, and so was its digital payments site Novi

• Stablecoin was also down when Facebook was down
• Would have been a big issue if the product was live
• if the servers go down for cryptocurrency wallets or exchanges, the consequences are unknown

US Bank launches bitcoin custody service

• Crypto demand is main driver behind the move
• The offering will help investment managers store private keys for bitcoin, bitcoin cash and litecoin with the help of sub-custodian NYDIG
• Crypto being seen as more legitimate by large scale FI’s

SEC Chairman Gary Gensler Looks to Rein in Crypto Exchanges, Digital Assets and Stablecoins

• Testimony focused on the need for more regulation and greater investor protection provisions.
• Non-committal on previous guidance from Clayton on ethereum and Bitcoin
• Gensler: Stablecoins are used to avert AML
• Regulation by enforcement

Fintech’s Explosive Growth Has Regulators Scrambling

• The pandemic has seen a huge rise in the fortunes of many fintech companies.
• There will be fintech failures (in the UK we have had Wirecard and Greensill already)
• Government should do more to reduce the risks of a fintech failure.
• But regulators can’t keep up.