Essential Fintech News - September 2019

September 26, 2019|0 min read

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Show Me the Data

World map in coins

Banks and credit unions have long been the trusted stewards of our money. Will they also be the trusted stewards of our data? It’s a hot topic in banking, and it’s becoming clearer that data is the lifeblood of finance. This month we explore the frontier of the discussion, including articles about:

The progress banks are making in artificial intelligence (see Financial Times: “Coming soon: Netflix-style nudges that reward bank customers”)
Innovations in open banking, with more data-sharing agreements (see American Banker: “U.S. Bank embraces open banking with data-sharing agreements”)
The hidden dangers of sharing our data (see The Washington Post: “Think your credit card is safe in your wallet? Think again.”)

When it comes to data, wise financial institutions will get off the sidelines and act now. As JPMorgan Chase CEO Jamie Dimon told GeekWire recently, “[We must] start to think about using data in a far different way … It changes everything. It’s a huge opportunity.”

More Benefits from Coopetition?

Screen Shot 2019-09-25 at 3.51.58 PM

Competition rules every industry, including banking and fintech. At the same time, according to recent news coverage and analysis, more financial institutions are warming up to the idea that there’s more to gain by joining vs. beating the other players. Wall Street banks, in one example, are learning from and “ramping up investments in some of their potential competitors,” writes Kate Rooney at CNBC. And according to Forrester analyst Aurelie L’Hostis writing for Forbes, leading banks will do better by focusing less on selling products and more on “helping customers achieve outcomes.”

Does it work in other industries as well? Absolutely, argues MX cofounder and chief technology officer Brandon Dewitt in a piece by American Banker’s Penny Crosman. After explaining on stage how his life was saved through increased collaboration among the medical community, Dewitt related, “In business there are industries people call a zero-sum game – there has to be a winner and a loser … [And yet] the human endeavor is an ever-increasing pie, and the more you do to increase the pie, the more we push the cutting edge of what can be done.”

At A Glance: