During a keynote panel at LendIt Europe Funding Circle CEO Samir Desai wondered if incumbent banks who build fintechs are attempting to pull a fast one on customers; the discussion talked about banks building fintech platforms and delivering better customer experiences; they also touched upon some misconceptions in online lending and the main customer lead channels. Source.
Overstock.com plans to launch their new regulated token exchange with its own initial coin offering; launched under Overstock.com's capital markets arm, tØ, the token offering will be the first listed event on the new exchange; CoinDesk reports that Overstock.com CEO Patrick Byrne said the company will be able to raise between $200mn and $500mn easily. Source.
The challenger bank is working to add bitcoin, litecoin and ethereum; Revolut customers will also be able to transfer cryptocurrencies to others; what makes what they’re working on unique is allowing an instant conversion to happen within the app; typically users must have an account on a crypto exchange where funds are transferred between accounts; the firm is currently testing features with 3,000 customers. Source
Chatbots are a great tool for banks to appeal to tech-savvy customers at a lower cost compared to a standalone app; according to Business Insider, DBS uses Kaisto’s Kai which allows customers to use Facebook Messenger to process transactions; Swedbank is currently using Nuance’s NINA to better serve customer inquiries; article shares other companies using chatbots and why this is a segment positioned for continued growth. Source
Former FDIC Chair Sheila Bair writes in the FT that in light of the recent hack to Equifax should regulators be providing more entry points to customer data; she goes on to explain past bank hacks are typically done using a third party who has gained access to a customer’s data; other key points include can these service providers cover potential losses and are regulators forcing service providers into the most secure process. Source.
While speaking as a keynote at LendIt Europe 2017 Zopa CEO Jaidev Janardana said old school banking was a zero-sum game; he explained how Zopa is looking to build what he thinks will be a fairer bank based on customer needs; they are currently about halfway through the licensing process. Source.
The EU is investigating whether banks in several countries are preventing the sharing of information that the bank customers have granted; the raids were a preliminary step and the results of the investigation are not yet known; in 2018 banks will be required to give third parties access to account data provided the customers have given consent. Source
PeerIQ’s weekly update includes a look at recent testimony on capitol hill by Equifax and Janet Yellen’s remarks at an event on reducing regulatory burdens on smaller banks; they also take a deep dive into the recent Navient acquisition of Earnest and how the servicer stacks up to SoFi. Source.
Tony Zerucha from BanklessTimes shares insights from the first day of LendIt Europe 2017. Source