Noteworthy tech news in the banking industry for March includes updates to President Donald Trump's proposed cryptocurrency reserve, a widespread data breach at Western Alliance Bank, insight into why banks aren't happy with their core providers and more.

Neobank Chime debuts $500 instant loans for direct depositors
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Neobank Chime will now offer what it calls "Instant Loans" — three-month installment loans of up to $500 at a fixed interest rate and without a credit check for members.
The fintech, which champions early paycheck access, will use its proprietary method to discern eligibility, relying on several factors aside from credit history to decide whether or not to lend. According to Chime, on-time loan repayments will help customers build a credit history.
Only Chime members who directly deposit their paychecks into their

Evolve Bank says documents reveal Synapse inconsistencies
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It's been close to a year since Synapse, a Silicon Valley startup that maintained transaction ledgers for fintechs and their bank partners, went bankrupt and it was discovered that customers' money totaling tens of millions of dollars
Synapse and its partner banks — Evolve Bank, Lineage Bank, AMG and American Bank — have been blaming each other ever since. Synapse clients such as Yotta, Juno and Yield Street are frustrated at how long this process has dragged on.
"It feels like depositors are caught in a he said-she said game between federally regulated banks who are fighting with each other," Yotta CEO Adam Moelis told American Banker. "If that's the case, where are the regulators? Why has this been going on for 10 months?"

Peter Thiel-backed Palantir plots AI tech for banks
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Military data contractor Palantir has paired up with TWG Group to create a joint venture that seeks to increase adoption of artificial intelligence in the financial space.
The joint venture combines Palantir's artificial intelligence and cybersecurity infrastructure with TWG's business technology experience to offer financial service organizations like banks, investment managers and insurance companies a product to expedite artificial intelligence adoption and integrate it at scale.
Palantir was founded by Peter Thiel, Alex Karp, Stephen Cohen and Joe Lonsdale. It began as a defense contractor before expanding into the private sector. Because of that, the company has long prioritized security. Thiel was one of the

FinCEN tightens rules for transactions near the southern border
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The Financial Crimes Enforcement Network (FinCEN) will require money services businesses (MSBs) near the U.S.-Mexico border to report smaller cash transactions to the government, lowering the threshold from $10,000 to $200.
FinCEN, which is an agency of the Department of the Treasury, issued the order Tuesday as part of an effort to combat drug trafficking on the southwest border,
The order requires MSBs in 30 ZIP codes in California and Texas to file a currency transaction report (CTR) with the Treasury for any transaction of $200 or more. The current threshold for filing a CTR is $10,000.

Why banks aren't happy with their core tech providers
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Bank satisfaction with their core technology providers is on the rise, but only slowly, suggesting institutions are having trouble finding the right fit, according to the American Bankers Association.
Banks have indicated that their primary nonpolicy concern is their relationship with their core providers, according to new ABA research.
Core providers are critical to a bank's ability to deploy modern, innovative tools.
"Bankers report a wide dispersion of satisfaction with, and effectiveness of, core providers and individual core solutions," the ABA report said.

Trump's crypto reserve coin picks puzzle industry leaders
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Crypto enthusiasts have been delighted by President Donald Trump's embrace of the industry, but his March 2 announcement that his proposed cryptocurrency reserve would include five different cryptocurrencies drew skepticism from notable voices.
Brian Armstrong, CEO of Coinbase and one of the richest men in crypto, said sticking with the "digital gold" of bitcoin would be the best route.
"Just bitcoin would probably be the best option – simplest, and clear story as successor to gold," Armstrong said in a post on the

Data breach at Western Alliance Bank affects 22,000 people
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Western Alliance Bank recently disclosed it suffered a data breach that went unnoticed for three months and affected nearly 22,000 people.
The breach occurred from Oct. 12 to Oct. 24 last year, and the bank discovered it on Jan. 27, according to a letter the bank sent to victims. The Maine attorney general relayed
Phoenix-based Western Alliance told victims that the information involved in the data breach included their name and Social Security number. Stolen files also included dates of birth, financial account numbers, driver's licenses, tax identification numbers and passports.

Ending cyber offensive against Russia could reduce threat intel
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As the U.S. reportedly ends its cyber offensive operations against Russia, intelligence collected through cyber espionage operations against the country also stands to decline, potentially compromising a source of threat information on which U.S. banks and other providers of the nation's critical infrastructure rely.
The Record, a publication of cybersecurity company

Commercial cards are getting hot. How banks can respond
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With commercial card spending predicted to rise precipitously over the next several years, banks have a chance to pounce.
Commercial credit cards could be a viable option for many businesses that still use ACH, particularly for larger payments, said Daniel Dawson, senior manager and cards and payments lead at Datos Insights, which
"It's definitely an unexploited market. Commercial cards account for less than 10% of total card volume worldwide," he said.

Business banking fintech Mercury, bank partner Evolve split
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Mercury, a fintech that offers banking to businesses, has ended its relationship with its long-time partner Evolve Bank & Trust. Mercury will migrate its customers over to its other sponsor banks, Choice and Column.
The move comes a few weeks after another Evolve partner, Dave, shifted its partnership with Evolve to Coastal Community Bank, and almost a year after Synapse, a middleware provider to Evolve and many fintechs, filed for bankruptcy.
Mercury offers bank accounts and payment services to businesses. The company has scaled up quickly and has outgrown the bank partner and middleware it started with, Evolve and Synapse, Mercury representatives said. They also said that once the bank switch is complete, customers will see faster ACH and wire transfers as well as the ability to accept wires in foreign currencies.