PayPal reported third quarter earnings this week, in which it reported strong user growth and future plans for its digital financial product suite.
Read MoreDemocratic lawmakers Alexandria Ocasio-Cortez (N.Y.) and Rashida Tlaib (Mich.) last week introduced the Public Banking Act, which would allow for the creation of federally chartered and supported public banks.
Read MoreThe banking-as-a-service ecosystem got a big boost this week through the release of APIs that allow clients’ programmers to build on top of the bank’s platform.
Read MoreThe Federal Deposit Insurance Corporation reported that in 2019, 5.4% of American households were unbanked, the lowest rate since 2009.
Read MoreJPMorgan Chase launched Chase First Banking, a fee-free account to allow Chase customers to offer their children bank accounts. Chase’s kids account rollout follows the footsteps of fintechs seeking to create financial tools for parents seeking to teach their children budgeting and personal finance management habits, while offering capabilities to send payments to their kids, set spending limits, and receive alerts on account activity. Chase First Banking doesn’t include overdrafts, check writing, ACH transfers or wires, positioning itself as an educational and convenience banking tool for parents. Chase First Banking completes the circle of Chase’s products for young people, including Chase High School Checking and Chase College Checking, paths to help create a customer for life as needs change over time. Fintechs, including Current and Revolut have also introduced kids accounts. It’s telling that Chase chose to collaborate with Atlanta-based fintech Greenlight, which specializes in accounts for financial products for kids, instead of building the product internally.
According to Lindsay Davis, director of Caliber Intelligence "Chase is partnering for two reasons. The first is previous attempts to build the tech in-house have fallen short of customer expectation. The most notable failure was Finn, its neobank the firm shuttered just one year after launching. Another reason is deposits are at record levels during the pandemic which are the lifeblood of a bank. Fintech apps have also surged in popularity among next-gen customers and many are or have plans to get into digital banking which puts deposits at risk for bulge bracket banks. By partnering with fintech Greenlight, Chase can accelerate the time-to-market versus building the product in-house."
Banks’ fraught relationship with data aggregators got a little more tense this week because of a patent infringement lawsuit brought by TD Bank against aggregator Plaid.
Read MoreJPMorgan Chase launched Chase First Banking, a fee-free account to allow Chase customers to offer their children bank accounts.
Read MoreDigital banking platform Greenwood seeks to serve communities traditionally ignored by the financial sector, particularly Black and Latinx communities.
Read MoreWells Fargo announced that it is cutting more than 700 jobs in commercial banking.
Read MoreBBVA-backed digital bank Azlo launched a subscription-based service called Azlo Pro, which includes invoicing, and automated budgeting for payroll and taxes.
Read MoreHarit Talwar, who has been Goldman Sachs’ global head of consumer business and the public face of its Marcus unit since 2015, is leaving his position, according to a Bloomberg report.
Read MoreWells Fargo has signed an agreement to enable API-based secure data sharing with aggregator Envestnet Yodlee, allowing customers to securely share data with 1,400 third-party financial applications
Read MoreCitibank and the Citi Foundation committed $1B in funding to enhance access to financial services for communities of color.
Read MoreThe Financial Revolutionist is weekly newsletter and blog focused on the torrid pace of financial innovation. Today, thanks to the exponential rate of technological change, explosion in global trade and new regulations ushered in by the Great Financial Crisis, a new financial revolution is under way. In this battle, virtually every aspect of the greater financial services sector is subject to rigorous challenge. With the Financial Revolutionist, we are aspiring to create a boots-on-the-ground and highly opinionated assessment of important financial innovation developments in the past week.
