8.14.2016

THE SKINNY

When You Stick to the Plan …

Even though Britain said yes to Brexit, it’s still got lofty goals to be the center of all things fintech. (BTW, Brexit means that time Britain voted to leave the European Union then immediately regretted it).

When You Keep On Keeping on…

Two years. That’s how long it’ll take for Britain to exit stage left (if it actually happens). It’s also the deadline that Britain’s Competition Market Authority (CMA) is giving British banks to stop being stingy with their customers’ data.

When You Know What’s Up…

CMA is very aware that bank fees can be…excessive. Customers are paying up but aren’t getting what they deserve. Enter fintech companies. CMA is drinking the ‘fintech koolaid’ and wants banks to share customer data with fintech startups and third party apps. Bank customers must approve first of course.

When ‘Many People Are Saying It…’

CMA thinks by 2018, fintech will not only help save British bank customers money and get them better services but also earn the economy the top spot in “fintech” around the world.

When You Need to Watch Your Back…

About that Brexit thing. No one knows exactly how Britain saying ‘bye’ to the EU will play out. But, Germany’s taking full advantage. It’s on a full on recruitment mode to get fintech companies based in London to hop on over to Deutschland. Do you blame them?

WHAT ELSE IS GOING ON?

Lies, Fairytales, and Fallacies…

Chip and pin cards (we’ve covered this; those cards you dip instead of swipe) were supposed to protect us from thieves. But, it’s not as safe as you think. Payment technology company NCR just unveiled a way for fraudsters to still get at your money. Apparently, they’ve used their genius for evil to figure out how to make chip cards seem cardless. Then, it’s off to the races. Retailers are thinking, ‘more reason not to buy those EMV card reader machines.’ But, it’s not all a lost cause, even with this security flaw, chip and pin cards are still slightly safer than regular ole swipe cards.

THE STREETS ARE TALKIN’

Thanks to Square Capital aka Square’s lending business, the company’s stock is wayyy up. It should feel blessed. Square Capital doles out loans to the company’s existing merchants in exchange for a piece of merchants’ sales. It’s all love all around (for now). Merchants love that they can get loans fast (within a few days) and low default rates. Investors love it too. But, to keep growing, Square Capital will have to do something else (e.g., handing over $$$ to non-Square merchants).

The war on cash in Boston is on its way. Boston area eateries like Sweet Green, Amsterdam Falafelshop, and Clover Food trucks want to go cash-less. They’ve picked up on the trend that young people are choosing plastic over paper when it comes to payment. But, a little known law in Massachusetts makes it illegal to turn down cash. The law and how it’s enforced is all very wishy-washy. But, seems like shops are willing to take the risk.

Been Around the World, Uh Huh

India’s mobile phone game is strong (smartphones are up 220 million making it the second largest market in the world). Should be good news for financial inclusion but not so much. Not many rural and underbanked folks are using their phones for banking or payment. And, taxes for use aren’t helping. But, the Indian government won’t be giving up on this.

The Nigerian Central Bank likes to walk the road less traveled when it comes to remittances (transferring money across borders from one country to another). The rest of the world wants to cut down costs on remittances. But, no. Not Nigeria. It’s going the opposite way. No secret that Nigeria’s economy is struggling. So to ‘maintain the exchange rate’ it’s up-ing the price on remittances.

In other news dealing with the continent, the Brookings Institute (U.S. think tank) says more regulations protecting consumers will help grow financial inclusion and innovation in countries like Kenya, South Africa, Uganda, Rwanda and Nigeria. Interesting since, a lack of banking regulations is a major reason money transfer service M-PESA is a success in Kenya …

Australia’s postal service is looking to the future. It’s looking into applying blockchain technology to the mail – mainly for identity reasons.

2.18.2016

Good to Know: The Oscars are coming up. Pretty much everyone’s pulling for Leo DiCaprio to take home his first little gold man. Now, there’s a game to help him do just that. Leo’s on a rampage!

THE SKINNY

What We’re Not Gonna Do Is …

Remember the terrorist attack in San Bernardino, CA a couple of months back? Well, the U.S. government wants Apple to “unlock” the attackers’ iPhones so they can get some info. But, Apple said “nah.”

When You’ve Gotta Pull Rank …

The U.S. Department of Justice (DOJ), the FBI, and Apple couldn’t settle their differences in closed door discussions so a federal district court judge stepped in at the DOJ’s request. The FBI said they couldn’t access the information they needed off one of the attackers’ phones so Judge Sheri Pym issued an order earlier this week to get Apple to help out law enforcement. #SetItOff

When You Use Fighting Words …

Apple CEO Tim Cook was not pleased with how the government took the issue public. So, he fired off an 1,100 word “customer letter.” In a nutshell, the letter says that what the U.S. is asking Apple to do is not right. Cook wants everyone to know that encryption is key to keeping users safe and secure. He admits that not even Apple employees can access people’s phone data. That’s how serious the company is about users’ security and privacy. And, this letter is basically his attempt to “rally the troops” and get everyone talking about this important issue. #KnowledgeIsPower

When You’re Either With Me Or You’re Not …

Google’s CEO Sundar Pichai, WhatsApp Founder Jan Koum , and your fave resident whistleblower Edward Snowden are rallying behind Apple and its stance against this whole thing. But of course, everyone has their critics. U.S. Republican presidential hopeful doesn’t understand who [Apple] thinks they are and says the company is “disgraceful.”

When You’re Not Sure What’s Coming Next …

Things are just getting started. Think tons of articles and opinion pieces, possible action from Congress in terms of legislation and maybe even a Supreme Court battle.

WHAT ELSE IS GOING ON?

Well, That’s Interesting …

Since we’re on the topic of the U.S. government trying to get access to people’s info … Turns out the NSA isn’t hoarding troves of your information like most people think. A new declassified NSA report says that the information it collects from online companies is usually limited to email to, from, or about its target. Hmmmm…

THE STREETS ARE TALKIN’

Ride hailing app Uber is shelling out a billion dollars annually just to play in China.

Uganda voted to elect its next president this morning. Citizens tried to access social media (Twitter & Facebook) but couldn’t. Turns out the country’s electoral commission requested to block the services. #UgandaDecides

In routine fashion, Yahoo let go of more of its employees this past Wednesday. And, it also shut down several of its digital magazines.

Sports network ESPN may be coming to a streaming service near you.

Google Express now delivers fresh food but only if you happen to live in select areas like Los Angeles or San Francisco. In more Google news, the time may soon come to ditch your Rosetta Stone, the number of language on Google Translate just went over the 100 mark.

Back to deliveries for a hot sec … Amazon is growing its on-demand delivery service by quietly hiring drivers to join the team.

Shop Snapchat soon, according to the company’s board member Joanna Coles.

Say hello to Twitter’s new Gif button (and we’ve learned that’s Gif with a “hard G’) … Also, Twitter just lost another user. Who? God, apparently.