Payments Executive | Digital Transformation Leader | Speaker | Writer | My Opinions. RT≠ Endorsement.
United States
Joined April 2011
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Christopher Danvers retweeted
JUST IN: 🇺🇸 210 Democrats and 13 Republicans voted against advancing Crypto Genius Act, Clarity Act & Anti‑CBDC Act.
Christopher Danvers retweeted
I have spent the last 6 months reading any and everything on agentic payments. I have come to the conclusion that it's a big fat zero and peak AI marketing hype. Fintech is dead (again) so tourists can go back home. Non-tourists feel free to proceed...
“Any "business" model that does not have shared economics will have a short shelf life.”
It’s an interesting take as we watch the recent NOpenbanking developments across regulators, banks, and the aggregators who created a business model on the back of those required to share.
Plaid and Other Aggregators just took a tremendous (well deserved) hit last week: PAY BY BANK IS DEAD IN US. US Banks just set fees for API access/ authentication.
Any "business" model that does not have shared economics will have a short shelf life. Building value on someone else's hard work, creating a competing product to end run them, and keeping all the economics will not gain you any friends. Surprise.. banks are fighting back.
My bank was Yodlee's first customer in 97 (Wachovia), banks can't own all the dross of compliance, customer support, tech, infrastructure, ... with no upside. At one point in time Yodlee represented 30% of our call center volume and about the same in HTTP requests (before we converted them to OFX). There are real costs to be covered. Customer online credentials were never designed to be given away to 3rd parties. Modernization and tokenization of credentials is another cost.
While PaybyBank was already a stretch against Durbin debit rates of $0.21.. The new access fees (vary by bank) will kill this completely. The aggregators may complain, but the banks will have a solid case by demonstrating the real costs involved in supporting this service.
The aggregtors will need to move up market to RTP and FedNow.. but this also means abandoning consumer eCommerce to focus on markets where speed matter (B2B, Payouts).. and competition has a big head start.
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NOpenbanking :)
The empire strikes back
Banks need to get paid
But jacking up fees unilaterally is harmful to consumers and the overall market. It's irresponsible.
Consumer permissioned data gave us cashflow underwriting. A major lifeline for low income populations.
While banks chase higher income segments for profitability.
It's rational but cynical.
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NOpen Banking.
Open Banking/API thought for the day: "There is no such thing as a free lunch".
Another reason API fees will withstand scrutiny is that the bank pricing is below the pricing of other commercially available services for account verification and identity that Banks, Telecos, Billers and others use. The "Good enough" verification associated with leveraging online banking credentials to verify identity (and ACH account control) for free are over.
Most rationale people would know that building a commercial service (ie priced) off the back of another business, AND building a competing product(s) would be short lived. Commercial alignment is necessary for any commercial interaction. While banking data is the property of the customer, banks making this data available and allowing a third party to directly access them (ie not self attestation) is an important distinction. Customers can still send third parties their banking data for free (ex a file of their transactions). But that is NOT what aggregators or third parties want.
US Banks want this fight. They want the opportunity to show in court how this data is being used. Example of the day, aggregators know how much you make and who you work for (ie Payroll from your bank account). While I'm not aware of anyone selling individual level data, the meta data is sold to put you in segments (ie Affluent, suburban, high travel spend). Is that what consumers signed up for when they linked an account to PayPal or Mint? I don't think so.
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These would look great on @BrettKing :)
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Christopher Danvers retweeted
LoanPro is thrilled to announce our direct integration with @Visa DPS to enhance our next-gen, end-to-end credit card platform!
Visit loanpro.io/visa for more details
Such a nice facility for our team, and for those working outside the Bay Area visiting is always a treat.
This quoted post is unavailable.
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Christopher Danvers retweeted
Wow. The Apple Card was one of the best fintech launches ever.
It was never really a good deal for Goldman to begin with (cost them >$1B), & comes with a broader consolidation in their consumer book.
Wonder who will step in!
BREAKING: Apple is shutting down its credit card partnership with Goldman Sachs.
According to WSJ, the contract will be terminated within the next 12 to 15 months.
The exit will cover their ENTIRE consumer partnership which began in 2019.
This includes shutting down the savings account program that started this year.
Their partnership was supposed to run through 2029.
A rare failure from Apple.
Christopher Danvers retweeted
Buy Now, Pay(Pal) Later
#BNPL accounted for 5% of global e-commerce transaction volume last year and is expected to grow at a CAGR of 16%
#fintech #tech #finserv #AI
@psb_dc @BetaMoroney
@efipm @BrettKing
@spirosmargaris
@jasuja
@enricomolinari
@shi4tech
@chidambara09
Christopher Danvers retweeted
Not a fail from Apple at all—probably one of the savviest corporate partnerships move of all time.
Goldman's been on the hook financially and reputationally, and its been a disaster with them. Meanwhile consumers think Apple put together the best credit card on the market from a financial product & UX perspective.
Goldman had to issue and service these credit lines, have their underwriting models come under fire from regulators, and didn't get much out of it.
Meanwhile Apple will just find other credit partners (perhaps Marqeta, which bought Power earlier this year for ~$300m) to be the financial partner.
BREAKING: Apple is shutting down its credit card partnership with Goldman Sachs.
According to WSJ, the contract will be terminated within the next 12 to 15 months.
The exit will cover their ENTIRE consumer partnership which began in 2019.
This includes shutting down the savings account program that started this year.
Their partnership was supposed to run through 2029.
A rare failure from Apple.
Christopher Danvers retweeted
Fintech. Is. Hard.
Consumer Fintech. Is. The. Hardest.
Apple, arguably, has distribution, design, engagement, consumers with spending power, etc.
You can't have more ideal conditions to launch a consumer fintech product.
It still didn't work.
BREAKING: Apple is shutting down its credit card partnership with Goldman Sachs.
According to WSJ, the contract will be terminated within the next 12 to 15 months.
The exit will cover their ENTIRE consumer partnership which began in 2019.
This includes shutting down the savings account program that started this year.
Their partnership was supposed to run through 2029.
A rare failure from Apple.
Christopher Danvers retweeted
🏦 BaaS Market Forecast: 15% YoY Growth, $66 Billion by 2030
Banking-as-a-Service software is basically built around 3️⃣ pillars:
A licence, a back office, and an API — BaaS companies can therefore provide banking services under a white label instead of through traditional banks and their legacy infrastructure.
BaaS has reshaped how financial products and services are accessed and distributed.
BaaS fintechs offer white-labelled plug-and-play licensed financial products that enable fintechs (e.g., neobanks, lending, wallets, PSPs, etc.) and corporates (e.g., fuel, insurance, retailers, etc.) to embed these products into their own customer journeys.
The BaaS model has proven highly successful for some, but there are also costs to consider. The business might require significant up-front tech investment and, as real-life examples have shown, it can take several years to build a substantial business.
Moreover, banks often need to increase their spending on compliance to ensure their fintech partners are adhering to banking regulations.
I highly recommend reading more interesting info (and use cases) on this topic in the complete source article by Hugo Hazon : medium.com/illuminate-financ…
❓Now over to you: Which BaaS provider are we missing in the market overview below?
Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ]
Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ]
Nice story, Marcel. Next! [ ❤️ ]
#bankingasaservice #baas #fintech #embeddedfinance #financialtechnology #fintechindustry #banking #digitalbanking #openbanking #openfinance #bankingtechnology
Shoot your shot!
Dear @AppleCard - if you're listening, I can help you pull off the most baller move of all time and we have the tech to build a WAY better product than GS did ... sorry @arfrank 😘
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Christopher Danvers retweeted
🏦 Banking-as-a-Service: The $1T Market to Build the Twilio of Embedded Finance:
Over the last several years, there has been an explosion of retail, travel, SaaS, and other companies expanding into financial services.
Walmart, IKEA, ServiceTitan and Toast are just 4 of the companies that have launched products like underwriting, interest-free credit, payments and bank accounts in an effort to provide a better experience to their customers and get closer to their wallets.
Leveraging their reach and data, brands are able to do something with these products that traditional banks like JPMorgan Chase or Bank of America or Wells Fargo have never been able to: deliver personalized experiences at scale and at the point of sale.
Where banks provide a highly regulated and repeatable set of products, brands and FinTechs can harness demographic and behavioral data to build new kinds of product experiences that ultimately bring them closer to consumers.
Read the complete source article by Jan-Erik Asplund to learn all about this: sacra.com/research/banking-a…
Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ]
Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ]
Nice story, Marcel. Next! [ ❤️ ]
#banking #bankingasaservice #bankingtech #digitalbanking #fintech #embeddedfinance #embeddedbanking #embeddedfintech #financialtechnology #fintechindustry
