Michael Ting

I need some help - Anyone in payments has likely ran into the "what do you do" question from friends and family, and some of the time just saying "Oh - I am in Payments" is good enough. For when it isn't good enough, we may go into CX, auth rate optimization, Fraud prevention, etc etc. I had a conversation with 3 family members this month and we somehow ended up on the topic of account updater... To me, account updater is a solid solution solving an interesting problem. To them, their first responses were "That doesn't seem fair", "Is that even Legal?" and "What if I got a new card because I didn't want to get charged anymore?" They're looking at it from the buyer's perspective, not the supplier / merchant side. Anyone else run in to this before? And does anyone actually have an answer I can bring back to them for our 4th of July get together? #payments #accountupdater #tokenization

21

18 Comments

Big news came recently that Moov has partnered with Jack Henry to embed Visa Direct and Mastercard Send to enable push-and-pull to debit for their core banking customers. I will be onstage today with Ben Metz CTO at Jack Henry Connect to share more and what we are doing tp help SMB's! This launch is solving one of the biggest pain points for smaller banks and credit unions competing with big banks - speed of funds movement. Bank customers on a Jack Henry core can now link external debit cards for instant money movement in and out of accounts over the card networks. Moreover, we've added tools like Account Name Inquiry and Address Verification to decrease fraud, a critical concern for banks adding instant payment functionality. Some real examples: ◼️ My HELOC payment is due. Move money from my external account the same day. ◼️ My big bank frustrated me with a fee, open and fund my new small bank account same day. ◼️ I need to send my vendor money for supplies. Push to her debit card instantly. ◼️ My credit card's auto pay went through today, pull money from my external account instantly. Yes, customers can use Zelle or Remote Deposit capture to transfer funds. But, every bank offers a debit card, allowing ubiquity in real-time money movement through the existing account transfer user interface. This is a game changer because it helps those banks achieve parity with the money centers and surpass the user experience of most regional institutions. If you are at Jack Henry Connect, introduce yourself at the welcome reception! #JHConnect Press Release Here:

304

32 Comments

The problem is not bundling - the problem is fintech’s selling you smoke and mirrors - locking you into a 10 year contract - then relying on their big VC pockets to outspend you in legal to terminate. Everything we do at BankSocial has an easy out - we want you as a partner. To come share your problems and needs with us so we can fix them and help you grow. And if we end up not being the right partner- we want you to be free to find the right partner. That’s why we believe in the power of open banking and the coming wave of Web3. The fix is not unbundling and signing MORE contracts - it’s finding partners who care. #sorrynotsorry

31

3 Comments

In 2022, Wells launched a credit card with Bilt Technologies, a fintech startup. But ...losing as much as $10 million every month..the program has also been hit by fraud. The partnership also poses money-laundering risk. Khwaja's Reflections from Board Oversight Standpoint: Wells Fargo has been making some (good) progress on the corporate governance front. Some of the forward-thinking areas include: ✅ Enhancing disclosures regarding board oversight of human capital management and risks, culture and ethics, and framework for workplace harassment and discrimination.  ✅ Technology and Innovation as one of five strategic pillars. More can be done. Here is My Take: ✅ There is a misalignment or lack of interlock between tech/innovation and risk oversight. ✅ I recommend the lead director establish a standing technology/innovation and cybersecurity committee. ✅ Make the pie bigger for value creation and don't delegate innovation/technology agendas to other committees such as audit or risk. ✅ Per proxy report, 38% of Director nominees only have technology/innovation/cybersecurity expertise while 92% have risk management expertise. Get more innovation/technology/Cybersecurity expertise. ✅ Get the right incentives aligned to take the lead in the innovation game. What do you think? *********Subscribe here to get all my 🔥 takes on the Board and C-suite effectiveness. 👉🏿 https://bit.ly/3VCkqyV ******** #CEO #KSgems #TheVentureMindset #Startup #Technology #Innovation #BoardOversight Manuj Aggarwal Nitin Gaur Christopher Hetner Ilya Strebulaev Alex Dang https://lnkd.in/euXAN-9b

5

7 Comments

Celebrating ten years since founding Female Founders Fund, we’re thrilled to announce a major milestone: the full return of Fund I. With notable exits such as Walmart’s acquisition of ELOQUII, Fiserv’s acquisition of BentoBox, and Maven Clinic’s recent $125M growth round, we’re seeing firsthand the power of women-led innovation. Being an early investor in Maven Clinic has shown us the transformative potential of female founders reshaping legacy industries like healthcare. Kate Ryder’s success story in building Maven into a category-defining business has become a beacon of inspiration for other female founders across all sectors. With this milestone, we’re proud to double down on our commitment to the next generation of female founders building tomorrow’s leading companies. As FFF investor Erin Harkless Moore, CFA of Pivotal Ventures put it, 'Female Founders Fund has shown that investing in women isn’t niche—it’s mainstream.' A special thanks to Allie Garfinkle at Fortune for covering our story! https://lnkd.in/ejTw7zWr

956

127 Comments

Curious about how we spot the most unobvious winners at seed? It’s simple - we invest in those we’d never want to bet against. In 2017 slice was a scrappy fintech financing smartphones for college students. Today, it’s set to become India’s first true digital bank, catering to the needs of India’s Gen Z. With this merger, Slice is poised to simplify digital banking for a billion Indians, establishing a new gold standard of customer-focused banking.

146

3 Comments

Catching up on a busy week of fintech news: 1.) Footprint raises a Series A. The combination of identity verification and vaulting/authentication is hard to sell but highly differentiated. 2.) Walmart breaks up with Capital One. The problem with classic co-brand credit card partnerships is the incentive to push cards on every customer, whether or not they are the right fit. Walmart now has an opportunity to take a more tailored approach. 3.) Frich raises a seed round. Social media is wrecking the relationship between money and happiness. Can anonymous financial benchmarking help fix it? https://lnkd.in/gqh9m4y4

36

1 Comment

Learn how the recent classification of MCC 5968 to high risk is reshaping the subscription payment processing landscape for many merchants, with insights from payment expert Melanie Stout. Read more 👉 https://lttr.ai/AS379 #subscriptionmodel #subscriptioneconomy #subscriptionbusiness #subscriptionbilling #subscription #recurringrevenue #churn #involuntrychurn #negativeoption #autorenew #premium

2

Introducing the next generation of in-person payments for enterprise In-person payments is known for clunky hardware and legacy systems. Adyen enabled platforms to change the game for SMBs; we’re now setting a new standard in the enterprise space. Meet the SFO1, the most advanced payment device ever built for enterprise. Here's what it looks like 🔥 ➡ This is Adyen’s first proprietary multimedia countertop terminal. It runs on Android, making it a multi-purpose, “all-in-one” device for a range of business needs. ➡ Each transaction enhances a shopper’s profile; the SFO1 takes this further by making it easy and intuitive for shoppers to share more data in-store. ➡ The SFO1’s comes with a high-resolution 8-inch screen that not only optimizes checkout but also elevates customer engagement via customizable marketing and promotions, all managed remotely without dev work. ➡ During its pilot phase, the SFO1 already supports a wide range of features, including tokenization, QR code wallets, marketing activations, and more. Expect even more functionality later this year and into 2025. ➡ With Adyen Giving built in, businesses can effortlessly offer 1-click donations at checkout, with 100% of the donation going to the cause and no extra work for finance teams. ➡ We’re partnering with top-tier POS technology providers like Oracle, Microsoft, Teamwork, Cegid, PredictSpring, Aptos and many others to ensure seamless integration of the SFO1’s advanced features. But that's not all, we have two more major announcements alongside the SFO1 launch! -> Adyen is the first global PSP to launch Klarna’s in-store solution and roll out Alipay+ worldwide. -> We are expanding Tap To Pay on Android support across Europe, UAE, Hong Kong, Malaysia, Australia and New Zealand, now offering the largest Tap To Pay coverage for both iPhone and Android. We strive to be the most customer-focused financial technology platform in the world. None of these advancements would be possible without deep collaboration with our customers. We are not in the business of guessing the next big thing in payments. We listen to our customers and ship products based on what truly moves the needle for them. No exceptions. Just relentless customer focus and ruthless prioritization.

408

7 Comments

Walmart-backed fintech One introduces buy now, pay later as it prepares bigger push into lending. The move puts One in direct competition with Affirm, the exclusive provider of installment loans for Walmart customers since 2019. There are signs that One is making a deeper push into lending beyond installment loans. "Walmart intends to offer its branded credit cards through One in the future,” Capital One said last year in response to Walmart’s suit. “With One, Walmart is positioning itself to compete directly with Capital One to provide credit and payment products to Walmart customers.” One has obtained lending licenses that allow it to operate in nearly every U.S. state, according to filings and its website. The company’s app tells users that credit building and credit score monitoring services are coming soon. https://lnkd.in/eC-iKjeB #digitalbanking #corebanking #bankingsolutions #payments #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #embeddedfinance #nichebanking #bnpl

47

4 Comments

Struggling to categorize transactions for bank and credit card statements? Manually sorting through statements is time-consuming and often leads to costly mistakes. But it doesn’t have to be that way! With tools like Uncat, you can automate the categorization process, saving time and ensuring accuracy. Whether you're managing personal finances or running a business, smart categorization is key to better financial insights and decision-making. 📊 Say goodbye to manual entry and streamline your workflow. Read more: 👇

10

1 Comment

I think the payment industry’s reliance on sponsor banks is finally reaching a tipping point. Stripe’s recent challenges with sponsor banks like Wells Fargo and Goldman Sachs have raised a big question: are we moving too fast and risking long-term issues just to speed up the onboarding process? Sure, getting merchants set up quickly is important, but delaying those crucial compliance checks just kicks the problem further down the road. It’s not just about onboarding smoothly: it’s about doing it right. Adding a few extra steps for compliance upfront is a small price to pay for avoiding bigger problems down the line. In an industry that’s moving faster than ever, maybe it’s time we slow down just enough to get it right.

102

13 Comments

The failure of Synapse is Lehman Brothers Inc. (LBI) all over again! Its just under a new breed of Broker-Dealers termed Banking-as-a-Service(BaaS) companies still too mathematically challenged to properly segregate client funds and calculate net capital in compliance with the SEC rules around it. Or could they have intentionally not deducted the UNSECURED loans given out by its subsidiary Synapse Credit LLC from such calculations? It is also shocking startups would depend on other startups for a core part of their business and even note this in their Risk Matrix or Business Continuity Plan as a low probability risk event. That's why at IMMIN, we run our own microlab, we build/host every part of our super-stack and we do not outsource! #ZERO_SAAS_IAAS #HELL_NO_BAAS #NO_FUN_IN_OUTSOURCING https://lnkd.in/gKrNCbSm

8

Great piece by Miriam Cross at American Banker. As I explained to Miriam, smooth wind downs and disbursements require planning ahead: 📣 Banks need unfettered access to critical customer data. Resilience to third-party failures is essential for a solid TPRM program. Ideally, banks should retrieve daily backups of critical customer data and store them internally. "Any time you have data that lives in one place that is critical to a vendor who can't see it somewhere else, you have a choke point." 📣 Banks should include critical third-party vendors in their tabletop exercises. These exercises typically test the bank's internal response, but including third parties ensures better collaboration and consumer protection when it matters most. "Normally, those happen within parties rather than between parties." 📣 Banks should include a tabletop exercise for rapid fund disbursement. Most banks don't consider account offboarding until it's too late. Whether for routine closures or rapid wind downs, banks need a plan to protect consumers. At Eisen, we offer the first Account Offboarding solution. We help banks prepare for and manage account closures, including data backups, direct outreach, managed disbursements, and state-by-state escheatment. https://witheisen.com/ Check out the other great insights from Jason Henrichs, Michele Alt, Teri Hodgett, Jesse Silverman, and Reid Whiting.

30

AI: it’s disruptive, divisive, and downright transforming small business lending. Watch Jane Prokop, EVP and Global Head, Small and Medium Enterprises at Mastercard, break down how AI and tech innovations are opening new doors for small businesses. Catch this quick clip from our webinar, 'Fair and Accessible Credit for Small Business and the Impact of AI' – a must-watch for anyone curious about the future of small business lending! https://lnkd.in/gcviidRs

3

A Small Bank’s Failure Leaves Big Depositors Feeling the Pain (quoted from the article) There is a big message in a tiny lender’s abrupt failure late last week: Customers with large deposits can lose money when their bank goes belly up. In general, the FDIC insures deposits up to $250,000 per person, per bank, although some customers with multiple accounts may qualify for more. If a bank fails, depositors whose accounts are above the limit face potential losses. That was the case for uninsured depositors of First National Bank of Lindsay in Lindsay, Okla. Federal regulators announced late Friday that it had failed and that another small lender agreed to assume its insured deposits—but not its $7 million of deposits that exceeded FDIC insurance limits. The FDIC said that it would make 50% of First National customers’ uninsured funds available, and that the amount could increase as the FDIC sells the bank’s assets. But there were no assurances. First National, which had only one office, was the second U.S. bank to fail this year. Its last quarterly report showed $108 million of assets as of June 30, along with $98 million of deposits and $10 million of total equity. The FDIC said that First Bank & Trust in Duncan, Okla., would assume First National’s insured deposits and that “all customers of The First National Bank of Lindsay will have access to their insured deposits.” The collapse of First National was sudden. The Office of the Comptroller of the Currency said it closed First National after finding “false and deceptive bank records and other information suggesting fraud.” The OCC added that the bank “was in an unsafe or unsound condition to transact business” and that its assets were less than its obligations. The OCC said it referred the matter to the Justice Department for a possible criminal investigation. In April, Philadelphia-based Republic First Bank failed with $6 billion of assets and $4 billion of deposits. In that case, uninsured depositors didn’t take a haircut because Republic First’s acquirer, Fulton Bank of Lancaster, Pa., assumed its deposits, including uninsured funds. Since 2007, there have been 37 U.S. bank failures where uninsured depositors lost money, according to the FDIC. The last time had been in 2019, when a small Texas lender, Enloe State Bank, failed with about $500,000 of uninsured deposits; about 40% of that was recovered. The largest losses in recent memory for uninsured depositors were at IndyMac Bank in July 2008. Its uninsured deposits when it failed were estimated to be $1 billion, with a 50% expected recovery rate. https://lnkd.in/g35gD5wA

18

I’ve been having tons of conversations with executives at sponsor banks and fintechs, and many are at a loss of how to stay ahead of the regulatory scrutiny that the BaaS industry is under (📣 BaaS is not in crisis, but it is under scrutiny!). We reviewed every consent order targeting BaaS banks by the OCC, FRB and FDIC, and our latest guide includes actionable recommendations for banks (and their fintech partners) to implement to resolve the deficiencies most frequently highlighted by regulators, including: 🤝 Ownership of compliance and outsourcing to third-parties 💻 Insufficient screening at both sponsor banks and fintech partners 📄 Deficient compliance tech stack testing ⛑️ Inadequate staffing that doesn’t keep up with growing compliance needs Any of this sound familiar? Guide with action items and how-tos: https://lnkd.in/ePYqgrFS 

26

3 Comments

Great article on the history and evolution of Capital One...

5