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Fintech companies are starting to act like banks

We see all the time what Zions Bank's Alex Jimenez calls 'innovation theater': Large financial instit
July 16 · Issue #91 · View online
Tearsheet Weekly Newsletter

We see all the time what Zions Bank’s Alex Jimenez calls ‘innovation theater’: Large financial institutions paying lip service to innovation by launching purposeless hackathons and half-heartedly creating innovation centers. But it’s less common to see the upstarts trying to act like the companies they’re trying to disrupt. Tearsheet’s Suman Bhattacharyya reports that, as fintech firms expand into new products and services, it is starting to happen.
– Zack Miller, Tearsheet

JP Morgan begins opening up customer data
JPMorgan is leading the push against screen scraping, a common way fintech companies access customer data. On Tuesday, the bank announced an agreement to push customer data to data aggregator, Finicity to be shared with its various clients, digital lending and personal financial management apps of interest to Chase customers.
Paypal wants to help SMBs with cross border payments
Despite the increased competition for cross-border payments, there is broad agreement that the space can accommodate more players. Paypal is now offering currency advice to SMBs to win their business.
Trust issues in payments give banks a leg up over Venmo
For banks and fintech companies operating peer-to-peer payments services, pinpointing illegal transactions isn’t always an easy task. A new poll found that a third of millennials have used Venmo to buy drugs and a fifth of them have used it for betting or gambling.
3 use cases for blockchain beyond supporting Bitcoin
While many in finance get bulled up on Bitcoin’s potential, blockchain has use cases far beyond supporting the digital currency – from securities trading to insurance and payments, financial intermediaries should be looking over their shoulders.
The race is on to kill the ATM card
The war on cash hasn’t progressed that much in the U.S. Financial services in the U.S. are hard at work making it easier and easier to get cash. Say goodbye to your ATM card, though.
(Sponsored) The power of conversational banking
Conversation is the new user interface connecting people to financial products and services. Meet KAI, a conversational AI platform from Kasisto that makes engaging with customers as natural as chatting. Learn more.
Why fintech companies are acting like banks
With the advent of slick bank innovation centers and hip working spaces, banks are trying to act more like startups. But a move that’s getting traction lately is the idea of the fintech startup acting more like a bank. It’s happening.
Adyen's Luke Salinas: 'The industry's been talking about omnichannel for years'
Salinas previously ran payments and fraud at Uber and now he’s running North American strategy at Adyen, a rapidly growing global payments provider. He’s our guest this week on the Tearsheet Podcast.
Can fintech mono-solution providers survive?
(Sponsored by Brandeis University) Mono-solution providers should evaluate the future of their revenue stream to determine if diversification can help mitigate their risks in a changing market. If they are able to take their innovation into new, multi-service arenas, Mike Storiale, an Adjunct Professor at Brandeis University’s Rabb School of Continuing Studies, expects to see unprecedented growth in the industry.
What we're reading
  • Initial Coin Offerings seen topping early stage venture funding (Bloomberg)
  • An inside look at China’s bitcoin mines and miners (Quartz)
  • Goldman Sachs relaxes dress code for techs in fight for talent (Reuters)
  • Visa takes war on cash to restaurants (WSJ)
  • What Santander’s latest bets say about the future of fintech (American Banker)
  • Banks deploy AI to cut off terrorists’ funding (Wired)
  • Stripe strikes global partnerships with China’s Alipay, WeChat Pay (Reuters)
  • Man stuck inside ATM rescued after slipping customers terrifying notes (Gizmodo)
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