A new report from Economist Intelligence Unit finds that banks are less fearful of fintech companies and that trends in the market are causing banks' interests to collide with fintechs for greater market partnerships and collaboration; the Economist Intelligence Unit report cites PSD2 as a leading factor for greater banking cooperation with fintechs; the report's Editor Renee Friedman says the research finds that "banks will increasingly have to adapt their culture and digital strategies to their customers' needs if they are to compete, not expect their customers to bend to theirs." 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.
Tink raised €56 million in new funding in February and today it announced a further investment of €1o million from...
The UK's Payment Services Directive 2 (PSD2) has the potential to significantly change banking for consumers with access to open APIs; the article notes that banks that have only done the minimum to comply with PSD2 may run into issues if we ever see a PSD3; fully embracing PSD2 may save headaches for banks down the road; the trend of open APIs and data sharing is likely to make its way to the US; Japan is also leading the way in this area having explored domestic ACH on blockchain. Source
According to new research by open banking platform provider Tink 41 percent of European banks failed to meet the latest...
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.
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.
Big Banks vs. Silicon Valley Startups – Whose Customer Financial Data Is It Anyway? Mixed Bank Earnings; PeerIQ’s Modeling Archive...
Alibaba’s Alipay was granted an eMoney license in Luxembourg to allow the company to serve customers across Europe; the eMoney...
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