Lots of news from or about the government this week with FSOC warning on the dangers of crypto, the White House laying out plans for AI and Congress giving up on crypto legislation for this year. Here are what I consider to be the top ten fintech news stories of the past week.
Crypto Could Threaten Financial System, Federal Risk Panel Warns from The Wall Street Journal – The Financial Stability Oversight Council (FSOC), chaired by Treasury Secretary Janet Yellen, said that while the crypto industry is small today, if it grew it could pose a systemic risk to the financial system. Not surprising given that FSOC is all about stability and crypto has not demonstrated that quality thus far.
What the White House’s blueprint for an AI bill of rights means for banks from American Banker – Staying with the government, the White House published an AI Bill of Rights this week and it lays out six rights consumers should have when companies deploy AI: protection from unsafe or ineffective systems, no discrimination by algorithms, data privacy, notification when AI systems are used, the ability to opt out and access to a human.
Crypto Overhaul Fizzles in Congress, Leaving Industry and Investors in Limbo from Bloomberg – Many argue that what crypto needs to maintain stability is sensible regulation. But that is not going to happen in 2022 now with the midterm elections less than a month away.
Banks send each other $500 million on day of blockchain launch from American Banker – Customers Bank, Cogent Bank and Western Alliance Bank have teamed up to create an interbank network built on blockchain technology. Last weekend they sent and received 400 transactions totaling $500 million that were settled almost instantly.
Afterpay Launches 12 Month BNPL Payment Option from PYMNTS.com – BNPL leader Afterpay popularized the “pay in four” concept where consumers pay four equal installments over six weeks, typically for transactions of less than $500. Now, they are moving up-market and rolling out 6-month and 12-month terms for purchases up to $4,000.
How To Fix The $30 Billion Checking Account Overdraft Problem from Forbes – In Ron Shevlin’s weekly column he shares the surprising results of a survey that shows Americans do not think bank fees are unfair. More importantly, he provides six points that can help those living paycheck to paycheck gain the liquidity they need, regardless of bank fees.
PPP loan servicer KServicing files for bankruptcy amid fraud probes from BankingDive – When American Express acquired Kabbage they didn’t include the loan portfolio, instead spinning that out into a separate business called KServicing that was mainly focused on their PPP loan portfolio. We learned this week, amid a myriad of state and federal investigations, that this unit has declared bankruptcy.
Kim Kardashian pays over $1 million to settle SEC charges linked to a crypto promo on her Instagram from CNBC – It is not often that a Kardashian makes the fintech news but this week Kim Kardashian agreed to settle with the SEC for $1.26 million because she promoted a crypto token on Instagram but did not disclose that she had been paid ($250,000!) for the one-time post.
Uber Pro Card built by Mastercard, Marqeta, and Branch launches from Fintech Nexus – A four-way partnership has launched a cool new product for Uber drivers. The Uber Pro Card allows drivers to receive up t 10% cash back on gas and 12% on EV charging and earnings will be deposited to the account after each trip, free of charge. Fintech teamwork at its best.
The Fintech 250: The most promising fintech companies of 2022 from CB Insights – The annual Fintech 250 is out and this year with a diverse group of startups including 159 unicorns (at last valuation). Stripe, Checkout.com, Plaid and Brex lead the way.
Every Thursday afternoon, the Fintech Nexus News team and a special guest discuss the news of the week live on LendIt TV, YouTube, LinkedIn, and Twitter. We have now made the show available in podcast format – click on the audio player below.
