I dig deeply into the $5.3 billion acquisition of data aggregator Plaid by $500 billion payments network Visa. We examine why this deal is worth 25-50x revenue, while Yodlee's sale to Envestnet was priced much lower. We also look at how Plaid could be an existential threat to Visa, and why paying 1% of marketcap to protect 200 million accounts may be a good bet. Broader implications for product manufacturers across payments, investments, and banking also emerge -- the middle is getting carved out, and infrastructure providers like Visa or BlackRock are moving closer to the consumer.
Alibaba’s Alipay was granted an eMoney license in Luxembourg to allow the company to serve customers across Europe; the eMoney...
According to new research by open banking platform provider Tink 41 percent of European banks failed to meet the latest...
According to a report by Which almost 92 percent of consumers have not heard of open banking; slow adoption by banks is one reason for the low numbers; another reason is many people have started to use non bank services for payments or other tasks, the term open banking is still relatively new; banks are starting to innovate, by building or partnering, and open banking will only help to push innovation forward. Source.
Former FDIC Chair Sheila Bair writes in the FT that in light of the recent hack to Equifax should regulators be providing more entry points to customer data; she goes on to explain past bank hacks are typically done using a third party who has gained access to a customer’s data; other key points include can these service providers cover potential losses and are regulators forcing service providers into the most secure process. Source.
Despite the fact a recent study suggests only 22% of those in the UK had even heard of “open banking”...
Peter Ryan of the software provider Temenos believes PSD2 has the potential to offer banks the personal touch they have lost; allowing consumers to share their data via APIs can allow banks to learn more about their customers and offer tailored products; while some banks have been proactive there is a fair share of the market who fear open banking; better understanding of the potential in PSD2 will help banks embrace what’s ahead. Source.
In an op-ed in the FT, the chairman of BBVA, Carlos Torres Vila, argues for the expansion of European open...
At $13 billion of revenue and 800 million users in 2016, Office 365 roughly generated $20 per user. That's like Monzo, but with the user foot print of Ant Financial.
You might think the comparison is daft. But let's dig a bit deeper. Excel, and spreadsheets more generally, are the default behavior for managing personal finances. Even for financial advisors, who are supposed to be the precise niche leveraging financial planning software, Excel is the default "do nothing" option. If you are not paying for digital wealth software as an advisor, you are doing it in Excel.
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