IBM

8.3.2016 – Virtual Skinny FinTech: Move It or Lose It

Posted by The Virtual Skinny on 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.

Screen Shot 2016-08-03 at 10.32.34 AM

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…

Virtual Skinny: Listen Up!

Posted by The Virtual Skinny on in Internet & Tech, Newsletter 0 Comment

2.4.2016

Good to Know: The Super Bowl is coming up this weekend. Don’t have cable? No problem. CBS Network is streaming the game for free on more devices this year. There’s still time to get yourself a Roku set-top box, Apple TV, Google Chromecast, Amazon Firebox, etc. Even if you’re not into football, band Coldplay is the halftime entertainment; BUT, we hear Beyonce will be stopping by! #YASSSS

beyonce superbowl
SOURCE REBLOGGY.COM

THE SKINNY

Are You Ready For This?

And by this, we mean predictive policing. What it boils down to is using different data sources (e.g., past criminal activity, population density; census data; the locations of bars, churches, schools, and transportation hubs; schedules for home games, etc.) to pinpoint patterns for future crimes.  Trippy, right?

This Is Happening … 

We all saw what happened in Ferguson, Missouri (police officer Darren Wilson shot and killed unarmed black teen Michael Brown). Some people are looking for ways to improve law enforcement’s relationship with local communities.  Just so happens that some police officers think that relying on data could help them make better, more objective decisions. One community is working with HunchLab, a startup that offer the latest version of predictive policing. You should know that other companies like Predpol, IBM, Hitachi, and Lexis have been in on predictive policing for some time now.

We Call B.S. … 

Activists and academics think that this is a pretty terrible idea. They think it’s pretty simple to conclude that the data being used would only reflect a system that already targets young black men at disproportionate rates. Proponents for cops using predictive technology say that at least with HunchLab’s system it protects against racially disproportionate policing by only focusing on serious felonies and not low-level crimes (i.e., drug possession). Seem like most people think that’s a tough sell.

WHAT ELSE IS GOING ON?

Let’s Get Down to Biz … 

Mixing the old with the new. That’s pretty much Yahoo’s plan to do better in 2016. It’s a three-step plan. The first is something Yahoo’s already done – many times.Yahoo’s telling 1600 more of its employees that “they don’t gotta home, but they gotta get the heck outta there!” And in what seemed to be a crazy plan when we first heard of it, turns out not so crazy after all. Yahoo is willing to sell its core Internet business and also its stake in Yahoo Japan. Last on the list? They’re even willing to sell the whole shebang to the highest bidder. It’s an aggressive plan.  Only problem is … How do you motivate people who may not be around for much longer? Things to think about …

thinking
SOURCE WWW.REDDIT.COM
On That Note …

Speaking of selling to the highest bidder, Twitter is struggling and should probably be giving its next steps some serious thought. Otherwise, a hostile takeover may be in its future. Meaning the company could either be bought by or merged with another company whether Twitter’s board of directors likes it or not. The good news here is a hostile takeover probably won’t happen for now mainly because of how the company’s board is structured. But, things could change.

Signed, Sealed, Delivered … 

The U.S. and European Union (EU) finally struck a new deal on transferring people’s personal data across borders. In what seems like a Hail Mary-type move, both economies came together and signed off on what they’re calling the EU-U.S. Privacy Shield, intended to replace the previous agreement known as the U.S.-EU Safe Harbor.  The agreement is likely a huge relief for American companies that do business in Europe. Now, they can somewhat relax and get back to business as usual without having to jump through much legal and regulatory hurdles. Even though the EU and US shook it, an EU watchdog still wants to take a hard look at the new deal to see if it really protects Europeans’ data when it makes its way across the U.S. border.

THE STREETS ARE TALKIN’ 

Sometimes, running your mouth can get you into uncomfortable situations. Just ask CEO of shopping mall operator General Growth Properties Sandeep Mathrani. He said that Amazon plans to open about 400 physical bookstores. Not true!

Action camera maker GoPro has got some news for ya. Are you sitting? The year ahead will be a bumpy ride for the company. And by bumpy, we mean its sales will be taking a dip.

Messaging platform Slack wants to change the way people work. E-mails are a huge time suck, and you’d be hard pressed to find anyone who loves those “reply all” messages. The platform wants to push office convos via channels and figure out how to better manage those discussions.

Let’s get back to the big game … Tech companies are digging deep into their wallets for Super Bowl Sunday. We’re talking US $ 4.3 million for a 30 second spot. Yikes! Expect to see ads from the likes of Amazon, PayPal, Apartments.com, and Squarespace. Ride hailing app company Lyft is taking a different marketing approach. It involves ex-NFL pro Jerry Rice as an undercover driver.

There’s now a text generator emulating unlikely Snapchat star DJ Khaled’s “keys to success” messages. #BlessUp

dj khaled
SOURCE NOWTHISNEWS.TUMBLR.COM

Looking for new things to watch? YouTube’s out with its very own original content February 10.

Virtual Skinny FinTech Ed: When It Rains, It Pours …

Posted by The Virtual Skinny on in FinTech Edition, Newsletter

2.3.2016

Keep Spreading the Word:  We’d appreciate if you’d tell your friends to get in on our FinTech weekly action.  They can sign up here! 

THE SKINNY

When People Are Coming For You … 

The European Union (EU) wants to do more to track how funds are transferred among terrorists.  Looking at you, Bitcoin (and prepaid cards).

Please Tell Me More …

After the Paris terrorist attacks in November 2015, the European Commission (being pushed by France) is focused on Bitcoin and prepaid cards for one main reason: identity. Using these services is a good way for bad guys (or anyone really) to hide financial transactions because it’s hard to uncover people’s identities.

When You’ve Already Got Summer Plans … 

The Commission plans to pitch some new rules by the end of June 2016 that would make users reveal their true identity.  We’ll have to wait and see how that turns out.

WHAT ELSE IS GOING ON? 

When It’s Your Time … 

Peer-to-peer (P2P) lending had a pretty good 2015 and looks like 2016 may be even better. New companies like Lending Club, OnDeck, Prosper, etc. popped up post the 2008 financial crisis to give people the loans they couldn’t get from banks. P2P lending startups will likely be on the rise this year thanks to things like an increase in interest rates, regulation, market size, and competition. Who knows? Internet companies like Facebook, Google, and Amazon have probably got next in the p2p lending game.

THE STREETS ARE TALKIN’ 

Stellar, an open-source payment network based in Silicon Valley, wants in on the instant money transfer situation in Nigeria.  It’s teaming up with fintech company Oradian that deals with microfinance systems in the name of financial inclusion. Transferring money may just get a lot easier for underbanked rural Nigerians.

While we’re on Nigeria, fintech startup Interswitch is about to make it big! It’s CEO isn’t talking, but we have it on good authority that the digital finance infrastructure (think platforms used for processing payments) may soon make its debut on the London Stock Exchange and become Africa’s first tech unicorn (meaning its worth at least a billion dollars). Kind of a big deal…

Ex-JPMorgan Chase exec Blythe Masters is keeping it in the family. Masters’ startup Digital Assets and the bank are playing on the same team for a blockchain trial run on how to make trading faster and more efficient. Oh, and Goldman Sachs and IBM also want a piece of the company for about $8 million combined.

Bitcoin and blockchain are blowing up in Asia. Here’s the rundown: Japanese VC firm SBI Investment pours money into bitcoin exchange Kraken; Bank of Tokyo-Mitsubishi UFJ, Tokyo’s largest bank, has got its own digital currency, “MUFG coin.” Add South Korea’s Central Bank to the growing list of entities looking into blockchain technology.

 

 

 

The Virtual Skinny FinTech Ed.: Get Those Paypers…

Posted by The Virtual Skinny on 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: Run That Back!

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

12.11.2015

Good to Know:  friendswholiketrump.com will tell you if your friends support or are at least interested in Donald J. Trump and what he has to say. 

THE SKINNY

Let’s Go Halfsies? 

After its board meeting last week, Yahoo has decided to keep its stake in Chinese Internet company Alibaba. There’s also a chance it’ll put a “for sale” sign on its main Internet business (things like Yahoo Mail and its other websites).

But, Why? 

Well, Yahoo initially wanted to keep its core Internet business and sell of its Alibaba stake. But, turns out that idea comes with some major U.S. tax headaches. So, the company is switching things up. It has two options: (1) Make the sale or (2) Split off its Internet biz into a separate publicly traded company aka a “reverse spinoff.”  CEO Marissa Mayer and Chairman of her board Maynard Webb choose #2.  They say making a sale on something of low-value is generally not a good move. But, they’re still not completely ruling out that option.

Moving Forward … 

It’s business as usual for Yahoo. It just released an app to help you sift through online streaming content called the Yahoo Video Guide.  And in the midst of all her company drams, Mayer welcomed twin daughters just yesterday. Congrats!

WHAT ELSE HAPPENED? 

We’re Here For You …

That’s what Facebook CEO Mark Zuckerberg is telling the Muslim community. Zuckerberg is committed to protecting their rights.  In the wake of terrorist attacks in Paris and San Bernardino, CA, things got downright nasty. Earlier this week, U.S. presidential hopeful Donald Trump thought it’d be a great idea to suggest banning Muslims from entering the U.S. Pretty much everyone disagreed. Zuckerberg says even though people are turning against them, Muslims are always welcome on his social platform. 

Will The Real Slim Shady Please stand up? 

We all want to know who is responsible for bringing us the virtual currency bitcoin. To date, people credit Satoshi Nakamoto, but no one really knows whether Nakamoto is a person or a group of people hiding behind the name. Recently, publications Wired and Gizmodo think they’ve figured it all out. Based on a ton of evidence, these publications are pretty convinced that Craig Steven Wright either invented bitcoin or we’ve all been royally punked. Coincidentally, Australian federal police officers busted into Wright’s home and office. Authorities say reasons for the raid are tax-related and have nothing to do with bitcoin. Now, people are wondering if id-ing bitcoin’s creator even matters. Some say “who gives” because no single person owns the bitcoin network. But, others disagree. They want someone to step up and help sort out some of the network’s bugs.

It’s All About the Benjamins, Baby… 

Twitter needs to make more money. It’s targeting people who read tweets without actually logging onto its platform. Coming to a desktop near you, Twitter will be playing around with a feature that shows ads to these non-active users. This means about a half a billion more people each month. Since we’re talking numbers, that averages out to an additional US $2.50/user. With Jack Dorsey leading the company, lots of changes are underway. Add changing up the timeline to show tweets based on relevance rather than timestamps to the list. Twitter’s just trying to make sure you get the content you want to see.

Is The Glass Half Empty or Half Full?

The Chinese government says “half full” when talking about it web censorship.  China’s government says bringing more “order” leads to increased online freedom.  And, by order, it means doing things like shutting out Western Internet platforms like Facebook and Gmail. Oh, did we mention detaining bloggers for “spreading rumors online” and “picking quarrels?” China wants people to back off. It says if things were so bad, then its online economy wouldn’t be growing so quickly. Also, it doesn’t appreciate people bashing its ways then trying to make money off of its people.

When Things Aren’t Looking Good … 

In the U.S., drivers for ride-hailing app Uber want employee benefits and are fighting to upgrade from just contractors for the company to legit company employees.  Ohio and Florida state legislators have denied their wishes.  Both states just passed laws classifying Uber drivers as contractors.  It’s unclear what these laws say exactly, but these moves could potentially ease Uber’s pain if it loses a class action lawsuit drivers brought against it in California.

THE STREETS ARE TALKIN’ 

Walmart wants in on the mobile payment game along side Apple and Google. The mega-retailer introduced Walmart Pay, its new mobile payment system. The word is Walmart still plans to work with other retailers like Target and BestBuy on CurrentC, the collective’s answer to Apple Pay.

Speaking of Apple, all you iPhone 6 and 6s users will love this … The smartphone manufacturer’s developed a battery case called the Smart Battery Case.  It’ll let you run your mouth for 25 hours.

Streaming service Netflix raked in more Golden Globe nominations than old-school TV broadcasters (8 nominations to be exact).

Turkey’s government is telling Twitter to pay up TL 50,000 (US $51,000) for not taking down alleged “terrorist propaganda.” At least it’s a fine this time, Turkey’s been known to shut down Twitter within its borders all together.

When you think you’re doing a good thing but not really… Tech company IBM quickly ended its #HackAHairDryer campaign initially intended to encourage female coders and engineers. The “hair dryer” angle didn’t go well … Women engineers fired off tweets letting IBM know that they are capable of much more.

Crowdfunding site GoFundMe just landed its new Vice President of Policy & Communications, Dan Pfeiffer. He was formerly the White House’s Communications Director.

Who hasn’t this guy gone after?  U.S. Presidential hopeful Donald Trump piped up about e-commerce company Amazon’s alleged “tax shelter.” Amazon’s CEO Jeff Bezos now wants to #sendDonaldtospace.

Yahoo can’t keep its people. It wasn’t so hard for Ad Product Chief Prashant Fuloria to say goodbye to the com-pah-nee. He’s getting back into startups.