BBVA Builds Shared Infrastructure for the Next Generation of AI Banking
BBVA has unveiled a centralized infrastructure designed to support the development and deployment of AI agents across the bank, marking one of the industry’s most ambitious efforts to operationalize artificial intelligence at scale. Rather than launching isolated AI projects, BBVA is creating a shared platform that allows teams across the organization to build, govern, and manage AI agents using common standards and tools. The initiative aims to accelerate innovation while maintaining security, compliance, and oversight—key concerns as financial institutions increasingly adopt generative AI. By establishing a common foundation, BBVA can deploy AI solutions more efficiently across customer service, operations, risk management, and internal workflows. The move reflects a broader shift from experimenting with AI to building enterprise-wide infrastructure capable of supporting autonomous financial services. As agentic AI becomes a major theme across banking and fintech, BBVA is positioning itself at the forefront of how banks integrate intelligent systems into their core operations.
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Card issuing in 1,000 words
A card isn’t a payment, but a chain of promises. How do card issuing and payments work, how is the card stack evolving, and why are so many fintechs building on cards today?
Great article by Matt Brown
Five players connect billions of buyers and sellers. The networks (Visa, Mastercard) are the center, managing the chain’s rules, tech, and incentives. Networks partner with banks2 to extend their reach: issuers are banks that onboard and support cardholders, while acquirers do the same with merchants.
The chain works because each link only has to cosign its neighbors. Cardholders only need a relationship with the issuer. Issuers only need a relationship with networks. The networks don’t work with cardholders or merchants directly, only with issuers and acquirers.
The chain’s first job is moving promises, not money. The promise layer is called authorization: when you tap, the question “is this cardholder good for $100?” is routed through the chain to your bank, and your bank returns an answer to the merchant. The money follows a day or two later, in a slower process called settlement.
Different cards, different promises, different fees
Every tap is a promise made by the issuer, and the kind of card depends on what immediately backs that promise.
With debit cards, the cardholder’s money immediately backs the promise. The funds sit in their bank account, and the issuer makes them reachable at the tap.
Prepaid is backed by stored value, a pool of funds loaded ahead of the tap (payroll cards, gift cards, government benefit cards). Other prepaid programs use just-in-time (JIT) funding, which pushes balance at auth instead of pre-loading. DoorDash drops the order cost onto a dasher’s card right before they tap.
With credit cards, the issuer’s money immediately backs the promise. The issuer fronts the money on its own balance sheet, and the cardholder pays it back later. If the cardholder carries a balance (also called revolving), they pay interest on the outstanding amount, expressed as an annual percentage rate (APR).
Charge cards are a flavor of credit with revolving traditionally turned off and repayment required at the end of the statement cycle.3 The promise is backed by the issuer’s capital extended at the moment of the tap.
Same tap, but very different businesses. Debit and prepaid have little receivable to fund. Credit and charge turn the issuer into a lender, with greater risk, capital requirements, regulatory and ops burden.
Credit’s greater risk and complexity come with greater fees. Cards monetize that directly through interchange.
The “2.9% + $0.30” is the merchant’s fee, not interchange. Interchange is only the issuer’s slice. The rest goes to the network and the acquirer (see “Interchange in 1,000 words”).
On a $100 consumer credit transaction, the merchant pays roughly $3.20, split among the issuer, network, and acquirer.
Curated News
💳 Payments
Mastercard Tests Instant Cross-Border Currency Transfers
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GoCardless and AccountsIQ Automate Payment Operations
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Visa Defends Its Role in Europe’s Payments Ecosystem
As debates around European payments sovereignty continue, Visa has reinforced its case for remaining a key infrastructure provider across the continent. The discussion highlights growing competition between domestic payment initiatives and global networks.
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🏦 Banking
UOB and FPT Partner on AI-Powered Banking
UOB and Vietnamese technology firm FPT have entered a strategic partnership focused on AI and digital banking innovation. The collaboration aims to improve customer experiences and enhance operational efficiency across banking services.
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Atom Bank Draws Acquisition Interest
Yorkshire Building Society and Leeds Building Society are reportedly evaluating bids for Atom Bank. The potential deal reflects continued consolidation within the digital banking sector as institutions seek scale and technology capabilities.
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Finastra Launches AI Analytics for Lending Decisions
Finastra has introduced a new analytics solution designed to help lenders convert more applicants into borrowers. By improving risk assessment and decision-making, the platform aims to support growth while maintaining credit quality.
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💼 Fintech
Fintech Sector Rebounds as Growth Accelerates
New industry data suggests fintech firms are emerging from recent reset years with stronger revenues and profitability. The trend indicates improving business fundamentals and renewed confidence across the sector.
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Equals Unifies Brand Following Merger Integration
Equals Money and Railsr have officially rebranded under the single Equals name. The move reflects the company’s strategy to simplify its market positioning and strengthen its identity as a unified fintech platform.
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Gradient Labs Raises $26M Amid AI Compliance Boom
Gradient Labs has doubled its Series A funding round to $26 million following rapid growth in demand for AI-powered compliance agents. The funding highlights increasing adoption of automation tools across regulated industries.
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🪙 Crypto
Vitalik Buterin Pushes New DeFi Risk Frameworks
Ethereum co-founder Vitalik Buterin is advocating for changes in how decentralized finance protocols handle market stress and liquidity crises. His proposals aim to improve resilience and reduce systemic risks during periods of volatility.
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Coinbase Faces Pressure From Derivatives Exposure Concerns
Analysts at Compass Point have issued a cautious outlook on Coinbase, citing risks related to derivatives markets and crypto trading conditions. The assessment reflects growing scrutiny of exchange business models as competition intensifies.
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Kalshi Expands Crypto Derivatives Ambitions
Prediction market platform Kalshi is exploring perpetual futures products tied to XRP, Solana, Dogecoin, and other cryptocurrencies. The move would significantly broaden crypto trading opportunities available on the platform.
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Coinbase Expands Access in India
Coinbase has expanded its services in India through support for the country’s IMPS payment network. The integration simplifies onboarding and transactions for Indian users, supporting Coinbase’s growth strategy in the region.
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Strategy’s Bitcoin Sale Sparks Market Dispute
A Bitcoin sale by Strategy has triggered controversy surrounding a $50 million prediction market bet on Polymarket. The situation highlights how large crypto transactions can influence market expectations and settlement outcomes.
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📈 WealthTech
InvestiFi Brings Embedded Investing to Credit Union Members
Great NorthWest Federal Credit Union is partnering with InvestiFi to provide embedded investment tools directly within its banking experience. The initiative reflects growing demand for integrated wealth management services among retail customers.
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Loqbox and Vivi Tackle Student Credit Challenges
Loqbox and Vivi have partnered to help more than 450,000 UK students build financial confidence and establish credit histories. The initiative addresses a major barrier facing young consumers entering the financial system.
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⚖️ Regulation
Wise Faces Belgian Money Laundering Investigation
Shares of Wise fell after reports emerged that Belgian authorities are investigating potential anti-money laundering compliance issues. The development highlights the growing regulatory scrutiny facing global fintech firms.
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Project Aperta Advances Open Finance Interoperability
Project Aperta, backed by the BIS, aims to improve interoperability between open finance systems across borders. The initiative seeks to create common standards that enable more seamless data sharing and financial connectivity.
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Bank of England Highlights AI Access Challenges
Bank of England Governor Andrew Bailey said UK banks still lack sufficient access to the Mythos AI model. The comments underscore growing regulatory and competitive concerns around access to advanced AI infrastructure.
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🌍 Other
IBM and Red Hat Commit $5B to Open-Source AI
IBM and Red Hat have pledged $5 billion to accelerate open-source AI development and infrastructure. The investment reflects growing competition to shape the future of enterprise AI ecosystems.
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Equifax Expands Identity and Fraud Capabilities in Europe
Equifax has partnered with Poland’s leading credit bureau to broaden access to identity verification and fraud prevention solutions. The collaboration aims to strengthen risk management capabilities for financial institutions across the region.
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