Digital banks expanded their reach as Revolut gained a New Zealand banking licence and Grab’s financial services segment turned positive on adjusted EBITDA, supported by lending growth.

Consumer credit showed contrasting trends at Block and China Merchants Bank, while Barclays moved towards early motor finance compensation amid legal challenges to the UK redress scheme.

Read more on the week’s key developments:

1. Revolut becomes New Zealand’s first digital bank with insured savings accounts

The Reserve Bank of New Zealand registered Revolut Bank New Zealand on 3 November, making it the country’s 27th registered bank and its first digital bank. Revolut launched instant-access savings offering new customers 3.5% a year for four months on balances up to NZD 50,000 ($28,000), with subsequent rates of 2%–3% depending on their subscription plan. Eligible deposits are protected up to NZD 100,000 ($55,900) per depositor under the Depositor Compensation Scheme. Revolut, which has operated locally since 2023, committed NZD 120 million ($67.1 million) over five years and plans to introduce credit cards in the coming months.

The four Australian-owned major banks account for more than 80% of New Zealand lending. Insured savings give Revolut a way to compete for household balances in this concentrated market, although its initial banking offer is narrower than in Australia. There, it committed AUD 400 million ($278.7 million) in July, migrated more than one million existing customers and launched savings and credit cards together. New Zealand’s phased launch puts the initial emphasis on deposit gathering. Retaining those balances after the introductory rate expires will depend on the continuing savings offer and customers’ use of Revolut’s payment and banking services.

2. Grab’s financial services segment turns positive on adjusted EBITDA as loan portfolio triples

Southeast Asian platform Grab reported on 3 November that its financial services segment achieved positive adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first time, reaching $12 million in the third quarter against a $28 million loss a year earlier. Revenue rose 124% to $201 million, while its gross loan portfolio tripled to $2.7 billion. Quarterly loan disbursements increased 115% to $1.9 billion. Customer deposits across GXS Bank in Singapore, GXBank in Malaysia and Superbank in Indonesia reached $2.7 billion, up from $2.5 billion in June.

Higher lending contributions from GrabFin and the digital banks, alongside contributions from Superbank and Stash, drove the $40 million improvement in adjusted EBITDA. The loan portfolio grew 115% year on year excluding Superbank, compared with 200% including the bank. Superbank has been consolidated since June and Stash since July, although Grab did not disclose their respective contributions to the earnings improvement. Impairment losses rose in GrabFin and the digital banks, while loans at least 90 days past due represented 2.6% of the gross loan portfolio.

3. Barclays to offer early motor finance compensation as FCA sets settlement conditions

Barclays Partner Finance, Barclays’ consumer finance arm, confirmed on 3 November that it would offer early compensation to some customers who complained about commissions paid on their motor finance agreements. The announcement came as the UK Financial Conduct Authority (FCA) set conditions for settlements while parts of its compensation scheme remain suspended amid lenders’ legal challenges. Offers must match or exceed compensation calculated under the scheme and, if accepted, will be full and final. Eligible Barclays customers must have had their complaints acknowledged by 1 October 2026.

Barclays’ approach contrasts with Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance, which are challenging the scheme. The bank has set aside GBP 430 million ($579.2 million) for motor finance compensation and will not reclaim early payments if final awards are lower. Customers receive compensation sooner but forgo any potentially higher award and cannot currently refer the offers to the Financial Ombudsman Service. Those who wait could receive more, but further appeals could delay payment until 2028.

4. China Merchants Bank reports shrinking credit card balances as consumer loan defaults rise

China Merchants Bank (CMB) reported on 30 October that credit card balances fell 5.1% from end-2025 to CNY 891 billion ($133.8 billion) at the end of September, while the non-performing loan (NPL) ratio rose from 1.74% to 1.93%. Consumer loans excluding credit cards expanded 4.7% to CNY 446.6 billion ($67.1 billion), although their NPL ratio also increased, from 1.02% to 1.26%. Mortgage credit quality moved in the opposite direction, with its NPL ratio easing from 0.51% to 0.48%. Across the overall retail portfolio, lending contracted 1.3% and the NPL ratio rose from 1.08% to 1.19%.

Credit quality trends diverged in the third quarter. The consumer loan NPL ratio eased from 1.39% in June to 1.26% in September, while the credit card ratio rose from 1.90% to 1.93%. Consumer loan NPL balances were still up 29.2% year to date, but the deterioration was concentrated in the first half. Card NPL balances rose 5.2% from end-2025 despite a smaller loan book, while newly formed card NPLs increased by CNY 5.6 billion ($0.8 billion) year on year to CNY 34.7 billion ($5.2 billion) in the first nine months. Credit cards remain the greater source of retail credit pressure, even as consumer loan quality shows signs of stabilisation.

5. Block raises outlook as Cash App lending grows and DOJ settlement advances

US fintech Block reported on 3 November that third-quarter gross profit rose 22% to $3.24 billion, with Cash App’s gross profit up 27% to $2.07 billion. Consumer lending originations grew 40% to $19 billion, driven by Cash App Borrow and Afterpay Post-Purchase, while transaction, loan and consumer receivable losses rose 66%. Cash App’s monthly transacting users increased 4% to 60 million. Block raised its 2026 gross profit forecast to $12.63 billion and reached a preliminary DOJ settlement over anti-money laundering failures, involving a $964 million gross settlement and approximately $764 million net payment, subject to final approval.

Lending growth contrasts with stalled primary banking engagement. Cash App’s primary banking users held at 9.4 million for a second quarter, below 9.7 million in the first, while inflows per active user fell sequentially to $1,446. Credit is expanding faster than core banking relationships, alongside higher losses. However, the combined loss measure includes payment transactions, limiting conclusions about loan quality.

6. Tencent signs Visa and Mastercard agreements on cross-border and agentic payments

Tencent’s TenPay Global signed a memorandum of understanding (MoU) with Mastercard on 2 November covering QR payments for international visitors using overseas wallets and banking apps, remittances into Weixin through Mastercard Move and agentic commerce through Mastercard Agent Pay. This followed a similar agreement with Visa on 29 October involving Visa Pay, Visa Direct and Visa Intelligent Commerce. Mastercard reported that inbound spending in mainland China rose 51.3% in the 12 months to June. Neither agreement specified a launch date.

Weixin Pay already supports overseas wallets and linked foreign cards; the agreements would expand payment routes. Visa and Mastercard could connect more overseas banking apps to its QR network, offering an alternative to bilateral links such as Hong Leong Bank’s with UnionPay. Mastercard’s third-quarter cross-border assessment revenue grew 16%, against 11% volume growth, underscoring the business’s revenue significance. Proposed remittance services could also compete with banks’ existing transfer routes into China.

7. Bank of Thailand targets December for BNPL licensing with credit and rate caps

The Bank of Thailand announced on 29 October that it expects to introduce a licensing framework for buy now, pay later (BNPL) providers on digital platforms in December. Draft rules released in October would cap credit at THB 20,000 ($625) per borrower, repayment at six months and combined interest, fees and penalties at 15% annually. Borrowers must be at least 20 years old, with seven operators expected to apply initially. A reduction in credit bureau enquiry fees is also planned for December, among five regulatory measures scheduled through March 2027.

BNPL lending reached THB 57 billion ($1.8 billion) across 11 million accounts in the first half of 2026. Thailand’s proposed licensing framework follows Malaysia’s introduction of licensing requirements for BNPL providers in June. Its explicit caps on credit, repayment periods and annual charges also contrast with Singapore’s industry code, which requires additional credit assessments before customers can exceed SGD 2,000 ($1,560) in outstanding payments per provider.

8. Monzo enters Spain with local accounts, Bizum and 4% savings offer

UK digital bank Monzo opened accounts to the public in Spain on 28 October, its first continental European market after launching in Ireland in April. Operating under its Irish banking licence and registered with the Banco de España, Monzo offers free personal, joint, under-18, business and savings accounts, with Spanish IBANs and access to domestic mobile payments service Bizum. Savings earn 4% annually for 12 months on the first EUR 5,000 ($5,600), with a standard 2.5% rate on balances up to EUR 100,000 ($112,000). Loans and investments are not initially available. Monzo, with more than 16 million customers, exited the US earlier this year to prioritise Europe.

Spanish banks commonly waive account fees and discount mortgages for customers who deposit salaries. Monzo requires no salary deposit, offering an alternative to payroll-linked account conditions. Spanish IBANs and Bizum provide essential local functionality but are already available from competitors, including Revolut and incumbent banks. Without lending products, Monzo cannot match incumbents’ salary-linked mortgage discounts. Its initial offer instead centres on fee-free accounts and a promotional savings rate whose EUR 5,000 ($5,600) cap limits the benefit for customers with larger balances.

9. Singapore extends vehicle loan restrictions to individually owned private-hire cars

Singapore authorities announced on 29 October that individuals buying private-hire cars, including sole proprietors, would be subject to private car financing restrictions from 30 October. Loans are capped at 70% of the purchase price for cars with an open market value of SGD 20,000 ($15,600) or less, and 60% above that, with a maximum tenure of seven years. The restrictions cover financing from banks, finance companies and moneylenders, as well as hire-purchase arrangements. Authorities cited around 500 monthly registrations of individually owned private-hire cars.

The measure extends existing borrowing limits to close an exemption used to bypass the 30%–40% down payments required for private cars. Business-owned vehicles remain exempt, potentially shifting drivers unable to afford larger down payments towards rental fleets. The government rejected a separate Certificate of Entitlement category for private-hire operators, citing the risk of higher rentals and fares. Authorities are also monitoring in-house dealer financing for circumvention.

10. Walmart-backed OnePay lets customers fund checking accounts with stablecoins

Walmart-backed US fintech OnePay began allowing selected customers on 30 October to fund checking accounts with USD Coin (USDC) across 12 blockchains, including Ethereum, Solana, Base and Tempo. Stripe’s Bridge creates deposit addresses, performs compliance checks and converts USDC into dollars, which OnePay credits to checking accounts, generally within moments. OnePay charges no conversion fee at launch, although network fees may apply. The service is the second product from its OnePay Next incubator, following an April partnership with Tempo, and the first of several planned stablecoin offerings.

The model uses stablecoins as a funding route while keeping account balances in conventional dollars. Unlike HSBC’s bank-issued RedCoin, OnePay relies on a specialist to receive and convert existing stablecoins before funds reach the deposit-taking bank. This gives a fintech without its own banking licence a way to connect stablecoin holders with everyday banking, while the bank retains its compliance obligations.