A recent report by Bain & Company just shares how successful Amazon could be if it were to enter banking; according to the report: "We could imagine Amazon's banking services growing to more than 70 million U.S. consumer relationships over the next five years or so — the same as Wells Fargo, the third-largest bank in the US. Although many retail bankers and observers have pegged the nimble fintech start-ups as the likely disrupters, it has become clear that established technology firms pose a bigger threat.”; the CNBC article shares several of the advantages Amazon would have in banking, products they could expand into and some of the talks that are already taking place with banks. Source
News Roundup
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Walmart has expanded their money transfer service to over 200 countries and all their U.S. locations; the expansion is through a partnership with Moneygram; Walmart’s move comes after recent news of Amazon expanding their financial services options for customers; “Money transfer services are like bread at the restaurant for Walmart; it’s negligible revenue for them,” said Daniel Ives, chief strategy officer at GBH Insights tells TearSheet. “The broader strategy is to build up that product arsenal on the consumer side — every Walmart customer globally is an Amazon customer that could be taken away.” Source.
We’ve seen Goldman Sachs enter a variety of consumer banking verticals over the last few years; now the bank has hired a senior JPMorgan Chase engineer to build cash management tools, deposit accounts as well as other products for big companies; commercial banking could bring even more deposits into the business and also help boost revenue; they will compete with other big names such as JPMorgan, Citi, Bank of America and Wells Fargo. Source
- CoinList Raises $9.2M in Series A Funding
- Liquid FSI Adds Key Board Member
- LendingTree Personal Loan Offers Report – March 2018
- LendingTree Mortgage Offers Report – March 2018
- Five Ways for FinTech Lenders to Achieve ROI on a Loan Pricing System Investment (ProBank Austin)
- Enhancing the Business Value of Loan Pricing Systems (ProBank Austin)
- Stripe launches a new billing tool to tap demand from online businesses
- Will fintech realize its potential for financial inclusion?
Deepak Lalit, Managing Director of LendIt Advisors reviews the public companies attending LendIt and their recent track record. Source
UK based Pia, personal investment assistant, is testing their new aggregator platform to help people find the best digital wealth advisor; “We spent time speaking to people who said we need to launch a product that’s far more accessible, interesting and engaging for somebody that doesn’t have a lot of investing experience and don’t know where to start,” said co-founder James Mackonochie to TearSheet; the difference between Pia and a typical aggregator site is they will use an AI powered chatbot to customize the user experience. Source.
Mambu has launched a digital marketplace to offer cloud based apps, products and tools for banking; the company will allow for integrations to be done locally or globally; Ben Goldin, Mambu’s head of product and technology, tells Banking Technology, “the marketplace provides an opportunity to present their offerings to institutions and influencers with the Mambu engine powering a composable architecture”; current partners include Onfido, Form3, nCino, Avoka and Experian. Source.
PeerStreet’s Series B round was led by World Innovation Lab with participation from Andreessen Horowitz, Thomvest, Colchis Capital, Felicis Ventures, Solon Mack and Navitas Capital; PeerStreet is a marketplace for fix and flip loans; the company said funds will be used to expand to new types of loans and that the company may also be adding more international investors. Source
Japanese banks are looking at digital payments due to a recent regulatory change which may bring in more competition; the law will be introduced in phases which makes it easier for depositors to give third parties access to both their accounts and data; it is part of a government push to reduce high cash use in the country; Projects around QR codes, blockchain and digital currencies are currently in the works. Source
According to a new report by CB Insights the most recent 5 quarters show that big investments in fintech companies from banks has slowed down; banks are instead beginning to develop and update core technology in house; Wells Fargo, Morgan Stanley, JPMorgan Chase and others have all developed and released their own digital investing and advising services; service provides like Diebold are offering the banks a chance to move all infrastructure online so they can focus on customer facing tools; banks are still working through transformation as almost all have now realized if they do not upgrade legacy tech they will be left behind. Source.