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
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CB Insights has provided a market map of artificial intelligence (AI) companies in fintech; the map is grouped by nine categories; top companies using innovative AI solutions for credit scoring and direct lending include Affirm and ZestFinance; the analysis also provides insight on each of the firm's investors. Source
Zopa's Jaidev Janardana spoke at AltFi Europe this week on the firm's plans for building a bank; he provides insight in a blog post; the bank will build on Zopa's successful track record in lending with new savings accounts and credit product but the firm will not offer a current account; the UK has been dominant in challenger bank development and the Zopa bank will provide UK customers with another alternative banking option which is currently in high demand in the region; the above chart highlights the competitive advantages Zopa has in the market. Source