Fintech Frontline: AI Lending, Core Upgrades & Regulatory Scale-Up
Date: 7 February 2026
1. Top Headlines (Biggest Fintech Stories This Week)
• Fintech founder charged with investor fraud — Finextra The founder and CEO of embedded loyalty fintech Kalder has been charged with securities, wire, and identity fraud related to a $7M seed funding round, underscoring increased legal scrutiny of fast-growth fintech startups. Fintech founder charged with fraud (Finextra)
• Varo raises $123.9M to expand national digital banking services — Finextra Digital challenger Varo, the first US fintech with a national bank charter, secured a major capital injection to accelerate its FDIC-insured consumer banking offerings nationwide. Varo raises $123.9m (Finextra)
• FCA names banks in government fintech scale-up cohort — FinTech Futures UK regulators selected six lenders including ClearBank, OakNorth, and Zopa to participate in a new “scale-up unit” programme designed to help fast-growing fintech players better navigate regulation and expand. FCA unveils first cohort for UK government’s scale‑up initiative (FinTech Futures)
• Veritus secures $10.1M for AI agents in lending — FinTech Futures US startup Veritus raised seed funding to deploy voice-first, omnichannel AI agents to help lenders automate borrower engagement, identity verification, and payment follow-ups. Exclusive: Veritus raises $10.1m seed funding to power voice‑first AI agents for lenders (FinTech Futures)
• JSBL partners with TCS to modernise core systems — FinTech Futures India’s Janata Sahakari Bank selected TCS Bancs to upgrade its digital and core banking systems, including payments, trade finance, and AML/KYC compliance. Janata Sahakari Bank Pune selects TCS Bancs for core upgrade (FinTech Futures)
• Amplify Credit Union adopts Alkami’s Mantl platform — FinTech Futures Texas-based Amplify Credit Union will implement Alkami’s Mantl platform to speed onboarding and reduce account setup times for members. Amplify Credit Union adopts Alkami’s Mantl platform (FinTech Futures)
• Opinion: Super app strategies reshape digital finance — Finextra A strategist outlines seven monetisation strategies fintechs and banks can use to build profitable “super apps” rather than feature-heavy products. Top 7 super app strategies for banking and fintech monetisation (Finextra)
• Opinion: Fintech bridging talent gaps in tech — Finextra Fintech solutions are helping high-tech sectors address talent shortages by automating HR workflows and expanding access to global tech talent. 5 Reasons Why Fintech is Bridging Long‑Standing Talent Gaps in High‑Tech Sectors (Finextra)
• Novum Investment Management gets pension fund backing — Finextra UK wealth-tech startup Novum secured investment from a UK pension fund to accelerate Doris — its tech to convert savers into investors. UK fintech startup Novum scores UK pension fund backing (Finextra)
2. In-Depth Highlight: FCA’s New Fintech Scale-Up Initiative
The UK Financial Conduct Authority (FCA), in partnership with the Treasury and PRA, has unveiled the first cohort of participants in the government’s Fintech Scale-Up Unit — marking a significant regulatory push to support fast-growing fintech and challenger banks. (FinTech Futures)
This initiative will provide tailored regulatory guidance and resources to six fintech organizations, including Allica Bank, ClearBank, Monument Bank, Nottingham Building Society, OakNorth Bank, and Zopa Bank, helping them navigate compliance challenges as they innovate and expand. (FinTech Futures)
The scale-up unit aims to gather detailed insights into the regulatory hurdles fintechs face, with the goal of refining the UK’s regulatory framework and improving industry-wide processes. (FinTech Futures)
For the broader market, this signals a shift in regulatory thinking — from policing innovation to stewarding it. Banks and fintechs alike could benefit from clearer pathways and reduced friction as they scale products like digital lending, embedded finance, and next-gen payments. (FinTech Futures)
3. Market & Industry Insight
Digital Banking & Challenger Growth
Digital challenger banks are continuing to attract institutional capital and regulatory support. Varo’s $123.9M raise highlights investor confidence in digital banking challengers that hold national charters, enabling them to offer insured deposit accounts and full suite services. (Finextra Research)
At the same time, regulatory programmes like the UK fintech scale-up initiative are emerging to help fintechs navigate compliance barriers — a recognition that scaling responsibly is as important as growth itself. (FinTech Futures)
AI & Process Automation in Financial Services
AI continues to expand into core financial services workflows. Veritus’s seed funding to deploy voice-first AI agents for lender workflows underscores a trend toward automating borrower engagement and payments processes. (FinTech Futures)
Meanwhile, commentary on fintech’s role in addressing talent shortages suggests AI is not just reshaping products but also helping firms operate with leaner teams and smarter workflows. (Finextra Research)
4. Company & Startup Spotlight
Veritus — Voice-First AI for Lenders
Who they are: A US fintech building AI agents that integrate with lender systems to automate borrower follow-ups, identity verification, and payment plan negotiations. (FinTech Futures) Recent development: Raised $10.1M seed funding backed by Crosslink, Threshold, and others to scale its platform. (FinTech Futures) Why it matters: The company’s focus on voice-first and omnichannel AI interactions could significantly reduce cost and friction in loan servicing — a key area for banks and fintech lenders. (FinTech Futures)
Alkami — Streamlining Credit Union Operations
Who they are: A digital banking platform provider specialising in online account opening and onboarding technology. (FinTech Futures) Recent development: Partnered with Amplify Credit Union to deploy Alkami’s Mantl platform and expedite onboarding. (FinTech Futures) Why it matters: Speed and ease of onboarding are critical competitive differentiators for community banking and credit unions. (FinTech Futures)
5. Regulatory & Policy Watch
• UK FCA unveils first scale-up cohort — UK regulators launch initiative to support fast-growing fintechs with tailored guidance. (FinTech Futures) • Fraud charges spotlight fintech governance risk — Regulatory and legal scrutiny increases after Kalder’s founder was charged in the US. (Finextra Research) • Core banking modernisation in India tackles compliance — JSBL’s upgrade with TCS integrates AML/KYC and real-time processing. (FinTech Futures)
6. Quote of the Day
“We will further enhance our offer by opening expressions of interest for a new solo regulated scale-up cohort in the spring…” — FCA spokesperson, on UK fintech regulatory support. (FinTech Futures)
7. What’s Next
• EBAday Fintech Zone returns — Payments and transaction banking summit opens applications for startups and innovators. (Finextra Research) • Ongoing digital banking expansions — Varo’s capital raise hints at potential product launches and market entries in 2026. (Finextra Research) • Regulatory engagement with scale-ups continues — Second cohort for the UK scale-up programme expected later this year. (FinTech Futures)
