U.S. Fed governor talks banks and fintech; Synchrony buys $6B in PayPal loans; U.S. banks set up a vendor management JV; U.S. banks finally get real-time payments; Coinbase rolls out custodial services; and Kabbage gets $200M from Credit Suisse. Plus, what’s the Big Idea with global regulators and ICOs?
The FSB has a report on AI and machine learning in financial services; Visa brings real-time payments to Europe; the U.S. will get bitcoin futures contracts; the SEC told celebrities to cool it on their ICO endorsements; and Quartz has a great report on how Amazon’s cloud is changing the economics of financial services entrepreneurship.
Fed Governor Lael Brainard spoke about banks’ place in the fintech ecosystem; Juniper Research projected that the total value of digital payments will reach $3.9 trillion in 2017; the American credit unions are studying how to leverage DLT; the Center for a New American Security examined the risk that virtual currencies may be used to finance terrorism on a wide scale; and White & Case examined the ability of AI to improve bank compliance functions.
MoneyGram’s board unanimously approved Ant Financial’s latest bid, topping rival bidder Euronet for the coveted U.S. money transfer firm; robo-advisor Wealthfront launched a secured lending product for its investment account holders; PayPal signed a new deal with Google’s Android Pay, expanding its digital wallet services to physical stores; and the NY Times writes on Canada’s attempt to keep its top AI scientists and startups from being lured away to Silicon Valley.
OCC’s Thomas Curry delivered the keynote address at the 2017 LendIt Conference, sharing his agency’s “responsible innovation” agenda with the borrowing and lending community; the Canadian Securities Administrators launched a regulatory sandbox to attract more blockchain and digital currency startups to the country; CurrencyCloud raised £20 million to fund global expansion; and digital payments firm Align Commerce changed its name to “Veem” and announced $24 million in new funding.
The U.S. House of Representatives relaunched its “Blockchain Caucus,” which focuses on issues related to DLT policy; BoA became the first bank to launch mobile payments on the Zelle network; Facebook now offers cross-border payments in its Messenger app, thanks to a new partnership with Transferwise; China’s largest P2P lender, Lufax, will offer online wealth management tools to China’s retail investing market; Goldman Sachs was named “Most Innovative in Finance” by Fast Company; and Bill Gates argues that governments should tax companies that replace human workers with AI-enhanced robots.