U.S. megabank Capital One’s acquisition of B2B fintech Brex is further blurring the lines between banks and fintech firms.

Traditional banks are moving to acquire companies to secure AI-based financial automation solutions. Fintech firms are seeking banking licences to provide payment and financial services directly. UK fintech unicorn Revolut has scrapped plans to buy a U.S. bank and will instead apply for a banking licence directly through the U.S. Office of the Comptroller of the Currency (OCC). Market research firm Forrester Research said both banks and fintech companies are driving rapid change as they expand capabilities and seek to offer corporate clients integrated, digital-first solutions.

• U.S. bank Capital One to buy B2B fintech Brex for $5.15 billion • Revolut scraps plan to buy U.S. bank, seeks to obtain licence directly • PayPal pushes to set up PayPal Bank, focusing on loans to small and medium-sized firms

Brex has provided corporate financial services such as credit cards, expense management, banking and spending reports to startups and small and medium-sized businesses. It even named its office Wi-Fi “BuyAmex,” directly targeting American Express (Amex). It drew attention by being sold for less than half its $12.3 billion valuation.

• Brex opts for half-price sale instead of IPO, a signal of fintech market reshuffle?

In South Korea’s banking industry, so-called embedded finance, which integrates financial services into other companies’ apps or platforms, is spreading. Major banks are stepping up strategies to weave financial services naturally into everyday life through partnerships with a range of companies.

• Banks step up embedded finance

Competition among South Korea’s internet-only banks is also intensifying ahead of the rollout of an online loan-refinancing service for sole proprietors. Related firms are positioning loans to sole proprietors as a new growth engine in a situation where stronger regulation of household lending has limited room for growth.

• Market opens for sole proprietor loan refinancing as internet-only banks vie to get ahead

Other key moves in the finance and fintech sectors are summarised below.

Woori Financial Group launched operations of its first combined branch in Seoul’s Yeouido, integrating wealth management functions from its bank and securities units.

• Woori Financial unveils first combined bank-securities wealth management branch in Yeouido

Shinhan Bank opened a service that allows sole proprietors to claim refunds for overpaid employment and industrial accident insurance premiums, to improve customer convenience.

• Shinhan Bank opens overpaid employment and industrial accident insurance premium refund service

NH Nonghyup Bank is introducing a newly developed acquisition-finance credit assessment model to help ensure smooth funding for companies with growth potential during corporate restructuring and industrial reorganisation. It aims to step up support for productive finance.

• NH Nonghyup Bank to support productive finance by upgrading acquisition-finance credit assessments

Hana Bank signed a business agreement with AI and cloud company MegazoneCloud to support productive finance. Hana Bank also upgraded financial functions on its platform for foreign customers, Hana EZ, to improve financial access and daily convenience. It also launched “retirement preparation traffic light” and “retirement MBTI” services through the official website of its retirement planning and inheritance and gift solution brand Hana The Next.

• Hana Bank joins hands with MegazoneCloud to support productive finance • Hana Bank upgrades foreigner-focused platform Hana EZ • Hana Bank launches retirement preparation traffic light and retirement MBTI services

KakaoBank will strengthen financial crime prevention technology using AI and telecom carrier authentication solutions to protect customer assets from increasingly sophisticated voice phishing and other non-face-to-face financial fraud. KakaoBank is also moving in earnest to set up a virtual bank in Thailand. It also launched a Dutch pay service called “1/N splitting” to reduce the hassle of repeated calculations and settlement requests after group gatherings or meals.

• KakaoBank upgrades abnormal transaction detection system: “Catching voice phishing with AI” • KakaoBank signs joint venture deal with SCBX, pushes ahead with Thailand virtual bank • KakaoBank launches Dutch pay service 1/N splitting

K Bank said a “lifestyle commerce-based financial service,” jointly applied for with Musinsa and Musinsa Payments, was designated as an innovative financial service by the Financial Services Commission. K Bank also introduced a service that uses AI technology to help users safely interpret suspected scam text messages.

• K Bank-Musinsa win innovative financial service designation for finance-commerce convergence • K Bank launches AI-based interpretation service for smishing texts

KB Kookmin Bank and Shinhan Bank, which are competing to be the leading bank, are drawing attention with different management strategies for 2026. Their goals are the same, but KB Kookmin is focusing on “expansion” while Shinhan is focusing on “execution.”

• KB’s “expansion” vs Shinhan’s “execution”: what to watch in the 2026 leading bank race

Mydata specialist BankSalad signed a memorandum of understanding with MegazoneCloud to strengthen AI agents. The two companies plan to lay the groundwork for technical and strategic cooperation that can present a vision in the AI era and expand mutual technical exchanges in cloud and data infrastructure. Kakao Pay added a telecom membership benefit analysis function to “Find my own benefits with AI,” a core feature of its generative AI service “Pay AI.”

• BankSalad signs MOU with MegazoneCloud to strengthen AI agents • Kakao Pay introduces telecom membership analysis function

Toss Place, a subsidiary of Viva Republica (Toss) that supplies payment terminals and point-of-sale solutions, introduced an AI-based automatic product registration function to Toss POS.

• Toss Place introduces AI technology to Toss POS: “Improving convenience”

PayPal agreed to acquire Cymbio, a fintech startup headquartered in Tel Aviv, Israel. Cymbio operates a multichannel orchestration platform that automates product sales across online marketplaces, retail and social commerce channels.

• PayPal to acquire fintech startup Cymbio, boosting AI commerce expansion

Shinhan Investment Corp signed a strategic business agreement with Etherfuse, a global real world asset (RWA) platform company, and will carry out brokerage and support work for issuing “Stablebond” backed by South Korean government bonds. Kakao Pay Securities introduced a “chart order” function that enables chart analysis and orders on one screen.

• Shinhan Investment Corp to pursue RWA cooperation with Etherfuse based on South Korean government bonds • Kakao Pay Securities introduces chart order function