8.3.2016 – Virtual Skinny FinTech: Move It or Lose It

Posted by The Virtual Skinny on August 3, 2016 in FinTech Edition, Newsletter 0 Comment

8.3.2016

Good to Know: We want to get your thoughts. Take our poll below!

THE SKINNY

When You Can’t Beat ‘Em …

Join ‘em. Wells Fargo, JP Morgan, Bank of America, and US Bank are all jumping on the instant cash bandwagon.

When You Don’t Really Have A Choice …

Their hands have been forced. In the U.S., moving money between bank accounts is slow AF. Mobile services like PayPal’s Venmo and Square Cash handled the issue…Customers love it … Now U.S. banks don’t want to get left behind.

When Your Age is Showing …

Banks have tried to pull an Instagram by offering their very own money transfer apps. Think Chase QuickPay. But, it isn’t quite the same ‘copy and paste’ job Instagram just pulled on Snapchat (read more on that later this week in our Internet & Tech edition). They want customers to believe that their apps are just as ‘hip and cool’ as the Venmos of the world with the help of star-power ads. But, some people aren’t buying it.

When You’re Not Leading From Behind…

The U.S. is playing ‘follow the leader’ with the rest of the world when it comes to faster payments. Note to self: The U.S. is doing the following. So, the Federal Reserve Board’s ‘Faster Payments Committee’ is telling banks to ‘pick up the pace’ on money transfers.

When You Need to Make A Move …

Meanwhile everyone and their moms in the financial ecosystem (including financial OGs like Mastercard and Visa) are in an arms race to build the “payments network of the future.” Mastercard snatched up a huge chunk of Vocalink, a UK biz with a mobile and internet payment network, and Visa’s strategically linked up with Paypal.

When You’re Just Happy to be Here …

Since people are still using the cash money and writing checks, there’s lots of opportunity to get in on the instant payments action. It won’t be easy for banks to catch up with Venmo and other peer-to-peer apps that are hybrid payment and social platforms. But, at least U.S. banks are making moves.

PENNY FOR YOUR THOUGHTS?

Now that banks are stepping up their instant payments game, are you willing to give up your current money transfer app (i.e., Venmo, Square Cash, etc) and give your bank’s app a go?

WHAT ELSE IS GOING ON?

Ain’t Nobody Got Time for That …

The U.S. is still trying to get consumers to dip their credit cards rather than swipe them. Turns out chip and pin cards aka EMV cards aka cards that keep us waiting at checkout for life are way more secure and help cut back on fraud. That’s great and all, but we hear that making just two purchases daily for a year with an EMV card adds up. It’s literally 85 minutes of our lives that we’ll never get back just waiting to check out. No bueno! Even retailers want to avoid installing EMV card readers because long lines aren’t good for biz. Only 28% of all U.S. merchants require dips v. swipes. Shopping at places that take Apple, Android, or Samsung Pay may be a better, faster option. Meanwhile, some of us will continue to struggle with the process.

And The Winner Is…

We hope China’s been practicing it’s surprise face and pageant wave. The U.S. Department of Commerce just crowned Asia’s largest economy as the 2017 Fintech Leader. Expect China to lead the world in payment exports.

Sorry Seems To Be The Hardest Word …

Banks in Africa are are like that ex who took you for granted but now wants to make things right. Sure, they did the basics like setting up infrastructure but didn’t go the extra mile to take care of everyone’s needs. Banks on the continent dropped the ball on figuring out mobile money services and left potential bankers out of the loop. Now that fintech startups have stepped in to offer way better services that can help way more people, the banks are seeing the error of their ways. To right their wrongs, banks are teaming up with startups like MFS Africa and Nomanini to reach untraditional young consumers.

THE STREETS ARE TALKIN’

Hong-Kong based Bitcoin exchange Bitfinex told us its system had been compromised. Like thieves in the night, hackers allegedly made off with a cool US $65 million in real money. The exchange is looking into the breach. In the meantime, Bitcoin’s value dropped by 7.8 percent earlier this week.

China’s got a trust problem with its charity organizations. Alibaba’s CEO Jack Ma wants to use blockchain technology to make sure charities are using donations for the right purposes. Alibaba’s Ant Financial is leading the effort on this. Transparency FTW …

The charity world is pretty old school when it comes to donations. It’s all about those cash money donations. But, you can only give what you have. So, if people are short on dolla bills, charities are SOL. DipJar wants to change that up by allowing people to donate with credit or debit cards for “impulsive, on-the-spot giving.”

While Alibaba’s trying to figure out this blockchain situation, IBM seems to be way ahead of them. The tech company is all set to kick off the first major implementation of the technology for its business. IBM’s figured out how to use the technology to settle financial disputes between partners and customers. #NBD

One last thing on the checkout process, Venmo’s no longer for just easily reimbursing your friends. It’s branching out into checkout services for retail apps. Buying things you probably don’t need just got easier…

The Virtual Skinny FinTech Ed.: Get Those Paypers…

Posted by The Virtual Skinny on December 21, 2015 in FinTech Edition, Newsletter

12.21.2015

Good to Know: 2015 is on its way out … ICYMI, here’s what FinTech can look forward to in 2016.

THE SKINNY

Thinking In the Alternative…

Tech companies and banks are banding together to build their own version of the blockchain, the underlying technology behind virtual currency bitcoin. The project is called the Open Ledger Project. Think alternatives to the blockchain like the Ripple network.

Tell Us More…

Nonprofit Linux Foundation is overseeing this alternative-blockchain movement. And, IBM, Intel, Cisco, the London Stock Exchange Group, JP Morgan, Wells Fargo, and State Street are in. The goal is to build something similar to the blockchain that will help increase transparency and automation across the business world. Think stock exchanges and financial markets, specifically.

If You Build It, They Will Come …

Yes, improving services in the business world is good and all. But, this move seems to be a lot about control. Currently, the current bitcoin network is decentralized just like the Internet. In other words, no one person or entity can claim the bitcoin network. With the Open Ledger Project, the participating companies can have a say in how the technology is built and operated. Word on the street is companies involved in the project want to ultimately keep this new blockchain-type technology open and non-proprietary.

WHAT ELSE IS GOING ON?

Starting Things Off Right …

In what will be a relatively light week on Wall Street on account of the holidays, things are looking up for tech and the financial sector. Not so much for energy stocks, which are trailing behind.

If It’s Broke, Fix it …

Global nonprofit organization Kiva is re-working its playbook for the U.S. market. The organization’s lending platform, kiva.com, has been a hit in when it comes to helping finance small biz in emerging markets, but it’s not so popular in the U.S. One reason? It’s just easier and cheaper to access capital. So, what’s the new angle? Kiva’s offering what it calls the Kiva Zip platform so small biz owners can bank on their friends and family to help fund their operation. We’re talking – raising $10k with 0% interest and zero fees and terms for three years. Not bad …

By Any Means Necessary …

We all heard about the massive data breach at JP Morgan earlier this year leaving 76 million homes vulnerable. Now, banks are shaking in their boots and are spending racks on racks on racks of cash to secure their systems. They’re also sending fake “phishing” aka “spear phishing” emails internally to see how employees react. Turns out employees are falling for it. In addition to training employees on what to do if they receive “phishing” emails, banks are also doing things like banning employees from using their work email address for play, using “out of office” emails or voicemail message, and from using portable devices like USBs. Anything for security. Speaking of … this year, entities dropped $75.4 million in the cybersecurity market.

THE STREETS ARE TALKIN’

UK mobile wallet app Yoyo has gone stealth mode in the U.S. The mobile wallet is quietly entering the market via a few chosen partners. It hopes to make things official during Q1 2016.

Investors are looking to Israel’s fintech market, which is hot, Hot, HOT! Turns out the country’s progression in cybersecurity makes it ripe for a fintech boom.

First Walmart, now Target. The retailer is getting into the mobile payments biz. Things are all very early stages, and the company says that it’s keeping its options open.

Breaking into the Chinese market. That’s top of the list on Apple and Samsung’s list of New Year resolutions. Both companies are looking to check that off their list with Apple Pay and Samsung Pay by collaborating with UnionPay. Chinese Internet company Alibaba’s already got a strong hold on the market with AliPay so we’ll see how this goes.

The U.S. Securities & Exchange Commission gave the A-OK to Overstock on its plans to use the blockchain to dole out stock.

The Virtual Skinny: Keep It Short…

Posted by The Virtual Skinny on November 24, 2015 in Internet & Tech, Newsletter

11.24.2015

Good to Know: The holidays can be stressful. Turns out getting on social media may only make things worse.

THE SKINNY

Adding Fuel to the Fire …

U.S. Senators Chuck Grassley (R-IA) and Dick Durbin (D-IL) are throwing in a bill of their own to heat up the U.S. immigration reform debate. It’s called the H-1B and L-1 Visa Reform Act of 2015. Grassley and Durbin want American employers to focus on hiring U.S. citizens first and forget about outsourcing certain jobs. Houston, we have a problem.

Back it up …

Quick background: This isn’t exactly what tech and Internet companies had in mind for immigration reform. These companies want the ability to bring in more foreign-born high-skilled workers like engineers to keep their businesses competitive. After all, there’s been talk about the U.S.’s shortage of STEM (Science, Technology, Engineering and Math) workers. So, tech and Internet companies often have to look elsewhere to bring in talent.

What Do You Want From Me?

These companies want to up the available number of H-1B visas, which are work visas for foreign, high-skilled professionals. The demand for these visas is currently so high that the U.S. government resorts to a lottery system for H-1B applicants. In other words, qualifications don’t matter, it all comes down to luck. Groups like FWD.us, backed by Facebook CEO Mark Zuckerberg, are pushing for “common sense” immigration proposals that focus on high-skilled immigration and immigrant rights.

Taking the Good with the Bad …

The bill wants to limit job outsourcing by targeting companies such as Indian outsourcing firms. But, it also has some redeeming points for the broader tech industry. For one, the legislation would make it easier for H-1B employees to switch employers without fear of losing their visa status. Win! The bill will likely go nowhere, but it’s putting immigration back on the map. With an election year coming up in the U.S. and campaigns moving full steam ahead, expect more immigration chatter.

WHAT ELSE IS GOING ON?

Is IT OR ISN’T IT?

Sports fantasy sites FanDuel and DraftKings will finally get their day in the New York Supreme Court tomorrow. On the agenda? Whether FanDuel and DraftKings’ services qualify as gambling. Since the alleged insider trading involving a DraftKings’ employee a couple of months back, the federal government and states have been on the companies’ backs. Tomorrow’s hearing is key because whatever comes out of New York on this issue could influence how other states deal with FanDuel, DraftKings, and other fantasy sports sites.

THE STREETS ARE TALKIN’

Social media company Facebook is in the business of giving away free Internet access. The company’s Internet.org initiative offers basic Internet access to emerging markets via a program called Free Basics. India’s got next.

Microsoft (MSFT) put out a report on the company’s diversity numbers. Slight improvement in racial and ethnic diversity within the company but not so much for gender diversity. The percentage of women at MSFT dipped 7.6% in the past year.

Amazon CEO Jeff Bezos tweeted for the first time. His side hustle, Blue Origin, successfully landed a rocket ship. Definitely tweet-worthy if you ask us.

Apple’s mobile payment and digital wallet service Apple Pay will be in China by February 2016. Chinese services like WePay and AliPay are already dominating the market. We’ll see if Apple Pay even stands a chance.

Lady Gaga’s ex manager Troy Carter helped her to stardom. Now, Carter wants in on tech talent. He’s launched an LA-based incubator called Smashd Labs.