Fintech Brain Food 🧠

Fintech Brain Food 🧠 analyzes and summarizes key fintech trends, focusing on the intersection of technology and finance. It covers topics like regulatory changes, the role of big tech in finance, cryptocurrency's impact, the evolution of payments and lending, and the significance of partnerships and data privacy in reshaping the financial landscape.

Cryptocurrency and Blockchain Payments and Digital Wallets Banking and Fintech Partnerships Regulatory and Market Trends Financial Technology Innovations Artificial Intelligence in Fintech Open Banking Embedded Finance Lending and Credit Consumer Finance Trends

The hottest Substack posts of Fintech Brain Food 🧠

And their main takeaways

FinCEN reports $212bn identity related suspicious activity

1198 implied HN points • 17 Jan 24
  1. FinCEN reported $212bn of identity-related suspicious activity, highlighting the crucial role of KYC in catching bad actors.
  2. Big 5 banks are now a big 1, with JP Morgan's standout performance signaling the shift in the banking landscape.
  3. Wise's success underscores the trend of attracting deposits in the current interest rate environment, benefiting from remote work and cross-border transactions.

BNPL is Good; I will die on this hill

1002 implied HN points • 02 Jan 24
  1. BNPL can be a good financial product if used responsibly.
  2. BNPL is popular among younger consumers and offers benefits like cash flow management and low interest rates.
  3. BNPL faces criticisms about targeting vulnerable populations and potentially enabling overspending, but can also serve as a lifeline for those without access to traditional credit.

Building the Deconstructed Silicon Valley Bank

963 implied HN points • 08 Jan 24
  1. B2B Fintech companies are reshaping the industry by offering services traditionally provided by banks, but with better user experiences and products.
  2. The approval of the Bitcoin ETF is significant as it will help institutions trust digital assets and finance, signaling a shift in the financial landscape.
  3. Trust is crucial in finance, as seen with the Carta controversy, where unethical actions can quickly erode decades of trust, impacting reputation and relationships.

Fintech Brainfood's 2023 in Review

805 implied HN points • 18 Dec 23
  1. Fintech is back and thriving, not just due to zero interest rates.
  2. Financial products are becoming more embedded in everyday life.
  3. Big tech companies are increasingly dominating consumer distribution.

PayPal's Stablecoin is just the beginning

1159 implied HN points • 09 Aug 23
  1. Crypto innovations are attracting attention and regulation, signaling a convergence of traditional finance and new technologies.
  2. Stablecoins, like PayPal's, are gaining mainstream momentum, potentially transforming global payments and US Dollar competitiveness.
  3. Fintech improvements, like passwordless data connectivity, are addressing user drop-off issues and could revolutionize open banking.
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Fintech Lending 3.0

707 implied HN points • 06 Dec 23
  1. Fintech companies face challenges in lending, with getting paid back being difficult, especially during economic downturns
  2. Partnerships between big Fintech companies like Klarna and Adyen show a global expansion trend in the industry
  3. Fintech lending is evolving with better technology, stablecoin offerings, and innovation in credit products

Embedded Finance in crisis

491 implied HN points • 19 Jan 24
  1. Embedded finance is facing a crisis with partner banks receiving regulatory enforcement actions.
  2. Regulators are focusing on the need for more automation and tighter controls in the embedded finance sector.
  3. The complexity of embedded finance products and the lack of clear regulatory guidelines may lead to a need for a Fintech Charter.

Fintech 🧠 Food - Is payments a race to the bottom?

845 implied HN points • 03 Sep 23
  1. Payments industry is not just about price, but also performance and value-add services like improving conversion rate and managing fraud.
  2. Adyen's challenges include investing in new products, navigating the US market entry, and facing competition in pricing from incumbents.
  3. The legal win for Uniswap and ETH being classified as a commodity showcases the need for regulatory clarity and co-existence of traditional and crypto financial worlds.

🧠 Is Pay by Bank the next Payment Rail?

373 implied HN points • 05 Feb 24
💰 Finance
  1. 2024 could be the year of Pay by Bank as a new payment rail in the US, offering lower fees for merchants, especially suited for higher-value or subscription payments, and giving banks a competitive edge with open banking becoming a regulatory mandate.
  2. Pay by Bank faces challenges to compete with cards, including establishing user familiarity, faster processing times, robust consumer protections, and creating repeat use incentives.
  3. Lessons from the success of cards, the necessity for consistent branding, merchant adoption based on conversion rather than just cost, integration of fraud protection, and leveraging data for loyalty incentives.

Fintech 🧠 Food - The Future of Payments

746 implied HN points • 10 Feb 23
  1. The future of payments is multi-rail, with various payment methods and wallets playing a key role.
  2. Regulatory clarity is needed in areas like staking for the crypto industry to thrive and innovate further.
  3. Digital wallets are evolving into identity hubs, offering the potential to centralize personal and financial information.

Fintech 🧠 Food - The future of Generative AI in Fintech

727 implied HN points • 12 May 23
  1. Generative AI is a paradigm shift in Fintech, being adopted rapidly and likely to become the new platform.
  2. The use of Generative AI in financial services focuses on automating back-office tasks and ensuring contextual accuracy.
  3. LLMs in AI need decentralized models to address issues like data privacy and version control, with potential business models through tokenization.

Fintech 🧠 Food - 1033: Open Banking Endgame

687 implied HN points • 12 Oct 23
  1. Open Banking in the US is entering its End Game with the proposed rule 1033
  2. Goldman's profits are down 33% due to losses from acquisitions like Greensky
  3. Synapse is facing challenges with a messy divorce and layoffs, reflecting industry pressures

Fintech 🧠 Food - The Frontier of Embedded Finance

668 implied HN points • 17 Sep 23
  1. Banks and Fintech companies are forming partnerships for growth in embedded finance.
  2. Stablecoins are gaining legitimacy, with PayPal introducing them on Venmo.
  3. Plaid is a leading player in Fintech, evolving with a focus on profit and partnerships.

Fintech Results Season Special

550 implied HN points • 08 Nov 23
  1. Regional banks are facing challenges like rising deposit costs and slowing lending, leading to cost-cutting and potential M&A.
  2. SoFi's decision to become a bank through acquisition is paying off with diversified revenue streams and growth in deposits.
  3. Payments companies are experiencing stock drops due to market uncertainty and differences between M&A-driven companies and digital-first companies like Adyen.

Fintech 🧠 Food - The Co-Pilot Revolution: How ChatGPT Changes Fintech.

628 implied HN points • 22 Feb 23
  1. Generative AI like ChatGPT can revolutionize Fintech by serving as a co-pilot for operators to manage complexity and reduce administrative tasks.
  2. India and Singapore linking real-time payment systems enables easier and more cost-effective cross-border money transfers.
  3. Avoid outsourcing your ledger to payment processors as relying on bank account statements could lead to reconciliation issues that can impact financial accuracy.

Fintech 🧠 Food - The Next Big Thing in Fintech?

628 implied HN points • 20 May 23
  1. Finance and entrepreneurship can coexist for innovation and societal progress.
  2. There is a shift towards software becoming integral in various industries outside of traditional tech.
  3. Regulation, network effects, balance sheet power, and risk management are key factors in the financial industry.

The Token Layer Cake

471 implied HN points • 30 Nov 23
  1. Tokens in payments are crucial for security and privacy, but they add complexity to the ecosystem.
  2. The Apple-Goldman partnership is ending, highlighting challenges in bank partnerships and pressures both companies face.
  3. Robinhood is attempting to enter the UK market for the third time, facing competition and questions about potential success.

Fintech 🧠 Food - Amex & Apple? Tokenization and Threads.

609 implied HN points • 06 Jul 23
  1. Tokenization is transforming the finance world by digitizing assets and making transactions programmable.
  2. Fintech companies like Chime and PayPal are gaining traction in opening more checking accounts than traditional banks.
  3. The future of finance involves a shift towards tokenization and decentralized financial systems.

Apple will be a bank in all but name

609 implied HN points • 05 Oct 23
  1. Apple is expanding its financial services offerings beyond just payments and into savings, credit cards, and more.
  2. Regulation is a key factor for Apple's financial services expansion, especially considering recent challenges with regulators.
  3. Apple's growth in financial services revenue indicates the shifting focus from core device sales to services, with a need to navigate complex regulatory environments.

The Great Erosion of Banking

569 implied HN points • 19 Oct 23
  1. Banks are losing market share at a rate of 1-2% annually, signaling the erosion of traditional banking.
  2. Financial services industry undergoing significant changes with Fintech companies facing a hangover from previous years.
  3. Partnerships between banks and Fintech companies are necessary for growth in the financial sector.

Fintech 🧠 Food - The US Dollar for Non-US Citizens

589 implied HN points • 22 Sep 23
  1. Atomic launched PayLink to help users switch recurring payments easily.
  2. Square CEO is stepping down, with Jack Dorsey taking over, bringing speculation on the company's future.
  3. The idea of a US Dollar for non-US citizens is evolving, with potential for Stablecoins to have a significant impact.

Don't hate; collaborate.

471 implied HN points • 22 Nov 23
  1. Don't hate; collaborate in Fintech.
  2. Four interesting Fintech companies highlighted.
  3. Highlight on the importance of collaboration for innovation in the finance industry.

Partnering as a competitive advantage

511 implied HN points • 03 Nov 23
  1. Partnerships between banks and Fintech companies can be a strong competitive advantage.
  2. Understanding the needs and motivations of Fintech companies is crucial for successful partnerships.
  3. Making partnerships a priority and investing in the necessary tools and processes can lead to significant growth opportunities.

Rumors of Fintech's Demise Were Over Stated

491 implied HN points • 10 Nov 23
  1. Rumors of Fintech's demise were overblown.
  2. Fintech companies are resilient and still showing growth.
  3. Narratives of Fintech's decline contrast with their strong performance.

Fintech 🧠 Food - Silicon Valley Bank

569 implied HN points • 10 Mar 23
  1. Silicon Valley Bank saw a loss due to not adjusting to rising interest rates, causing chaos in the Fintech sector.
  2. Africa presents the highest risk and reward for Fintech investors, with diverse challenges and opportunities.
  3. Fintech companies like Silvergate and SVB faced significant issues, highlighting risks of high concentrations and lack of adjustments to market changes.

Fintech 🧠 Food - Stripes difficult teenage phase

569 implied HN points • 04 Feb 23
  1. Stripe is going through a challenging phase as it matures
  2. Monzo's revenue has grown 2.5 times and the company is on track to profitability
  3. Chainalysis data shows Crypto AML is more effective than TradFi AML

Fintech 🧠 Food - The future of embedded finance

550 implied HN points • 02 Jun 23
  1. Embedded finance is mainstream and evolving rapidly with more partnerships and complex products
  2. Digital wealth management for the new generation is on the rise as trillions transfer to millennials
  3. The future of finance includes AI-driven investment advisors and the importance of identity and trust in the digital age

Fintech 🧠 Food - The Future of Money

511 implied HN points • 23 Jun 23
  1. Revolut launches "ultra" premium proposition targeting a new persona in Europe with unique benefits
  2. Adyen partners with Shopify, challenging Stripe as they continue to gain market share
  3. Digital Euro legislation leaked, sparking discussions on the future of programmable money and potential upgrades

Fintech 🧠 Food - Lending doesn't need banks

511 implied HN points • 28 Sep 23
  1. Lending is shifting away from banks to Fintech and shadow banks.
  2. Banks struggle to address new market segments, eroding their market share.
  3. New Fintech lenders can respond rapidly to new demands, but there are risks and challenges with lending innovation.

Banks: Quit LARPing and build better products

471 implied HN points • 26 Oct 23
  1. Banks need to focus on building better products instead of just copying competitors.
  2. Fintech companies are facing pressure to do more with less, leading to stronger companies and talent.
  3. Market share is shifting from traditional banks to challenger fintech companies, highlighting the need for innovation and customer focus.

🧠 Some personal news.

1218 implied HN points • 20 Jun 22
  1. Simon Taylor is stepping back from day-to-day responsibilities at 11:FS to join Sardine as Head of Strategy & Content.
  2. Simon believes in the importance of improving finance to impact people's lives and sees potential in Web3 and DeFi.
  3. Reducing fraud can increase conversion and growth, and building a complete customer picture enables more real-time transactions.

Fintech 🧠 Food - Adyen's big miss

491 implied HN points • 18 Aug 23
  1. Adyen reported below-expected growth, causing a 40% drop in value.
  2. Visa is under investigation for token pricing strategy, potentially creating lock-in for merchants.
  3. Fintech industry maturing with companies like NuBank excelling and Plaid partnering with Pinwheel.

Fintech 🧠 Food - UK Fintech is Back!

491 implied HN points • 14 Jun 23
  1. UK Fintech is experiencing a moment of resurgence, with profitable digital banks and increased interest from VCs.
  2. Regulatory clarity may come to the US Crypto market through SEC actions against Coinbase, potentially legitimizing the industry.
  3. New agency guidance for banks on managing risks from 3rd party relationships, including Fintech providers, aims to enhance oversight and compliance.

Fintech 🧠 Food - Do we need narrower banks?

491 implied HN points • 28 Apr 23
  1. Regulation in finance is always evolving, never complete.
  2. Fintech companies are reshaping the banking sector with innovative offerings.
  3. The global financial landscape is shifting, impacting currencies and trade dynamics.

Scaling Human's with Financial AI

334 implied HN points • 13 Dec 23
  1. Fintech companies are raising significant funding for growth and acquisitions.
  2. Advancements in AI technology are transforming the efficiency and scalability of financial services.
  3. Apollo's approach of a deconstructed bank model without traditional banking regulations is proving successful.

Fintech 🧠 Food - The future of BaaS

471 implied HN points • 06 Apr 23
  1. Banking as a Service (BaaS) is evolving to be more automated and compliance-first.
  2. Acquisition of Fintech companies like Go Henry by Acorns shows a trend towards Fintech companies expanding through strategic partnerships.
  3. Future of BaaS involves adapting to complexity, with sponsor banks, BaaS providers, and Fintech companies all focusing on increased compliance and risk management.

Fintech 🧠 Food - From Outsourcing to AI Sourcing

452 implied HN points • 22 Aug 23
  1. Generative AI presents an opportunity to disrupt the outsourcing industry by using AI technology.
  2. Legacy IT infrastructure poses challenges due to its complexity, rigid design, and lack of modern APIs.
  3. Generative AI, such as Large Language Models, excels at tasks involving unstructured data, context-specific tasks, and domain-specific tasks.

Fintech 🧠 Food - Trade Finance is the end boss of Fintech

452 implied HN points • 25 May 23
  1. Trade Finance is a critical and complex part of the Fintech industry that has global implications.
  2. Efforts to modernize Trade Finance have been challenging due to the lack of standardization and global legal changes.
  3. There is a significant opportunity for Fintech innovation in Trade Finance, focusing on infrastructure, using AI tools, and leveraging blockchain technology.

Fintech 🧠 Food - The future of loyalty

530 implied HN points • 06 Jan 23
  1. The future of loyalty in fintech is shifting towards data-driven engagement strategies following a transaction.
  2. Four notable fintech companies making waves include Tome, Syncfy, ntropy, and RevOS.
  3. Recent developments include FTC ordering Mastercard to open debit transactions to competing networks, the UN sending Stablecoins as aid to Ukraine, and rumors of crypto on-ramp Wyre shutting down.

Fintech 🧠 Food - Monzo's scam stopping feature

412 implied HN points • 12 Sep 23
  1. Monzo has introduced a feature to alert customers in real-time if they are being targeted by scammers.
  2. Banks need to implement similar scam detection features to protect customers.
  3. Scams are a growing issue in the banking industry and need to be addressed with innovative solutions.