Fintech Takes

S8 E1: Fintech Recap: Evolve’s Massive Data Breach, Apple’s Bizarre Announcement, and Klarna Replaces Its Staff with AI

Jul 10, 2024

Author Jason Mikula discusses his new book 'Banking as a Service' and Evolve's data breach. They dive into Apple's strategy shift, regulatory risks, and Klarna replacing staff with AI, while also touching on the overturning of the Chevron Doctrine.

01:04:40

Episode guests

Jason Mikula

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The overturning of the Chevron Doctrine shifts regulator deference to courts, impacting industries like fintech and cryptocurrency.

Klarna's adoption of generative AI for customer service leads to a 20% annual decrease in staff, raising concerns about job security.

Deep dives

Impact of Overturning Chevron Doctrine on Regulators and Businesses

The Supreme Court has overturned the Chevron doctrine, reducing deference to regulators in applying statutes to new situations. This change may require clearer laws from Congress or increased judicial challenges for regulators. The balance shifts to courts deciding on regulatory interpretations, potentially impacting industries like cryptocurrency and fintech. The removal of deference could lead to more legal scrutiny and challenges for regulators.

Intro

2min

Banking Book Announcement and Data Breach News

4min

Massive Data Breach at Evolve Financial Company

42min

Discussion on the Overturning of the Chevron Doctrine and Its Implications on Regulators and Companies

8min

Discussion on Data Breach Impact on Users and Klarna's Use of AI to Replace Staff

5min

He’s been wise. He’s been powerful. But guess what? It’s the first episode we can officially call Jason Mikula an author! Jason chats about his new book, “Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models” and reveals what you can expect from his debut book, which is currently available for pre-order. If you haven’t ordered your copy yet, don’t forget to order it here using the promo code “BaaSIsland” for 20% off!

And speaking of BaaS Island, beware of where you set sail because the seas are unsafe with pirates roaming the dark waters. With a massive cyber security breach, a brand new consent order, and a middleware platform partner at the bottom of the ocean, is Evolve trying to win an award for the worst bank ever?

The guys also discuss the death of Apple Pay Later, and Apple’s announcement that both issuers and Affirm can compete for Buy Now, Pay Later in Apple Pay. What caused the sudden shift in strategy for Apple? Alex and Jason explain how regulatory risk and heightened scrutiny for lending products might have been the catalyst for change. Is Apple Card next on the hit list?

And later, they discuss what the overturning of the Chevron Doctrine means for regulators. Plus, Alex just can’t let it go that Klarna intends to replace its customer service staff with AI. As if we needed one more automated customer service line that doesn’t answer any of our questions…

Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/

And for more exclusive insider content, don’t forget to check out my YouTube page.

Follow Jason:

Newsletter: https://fintechbusinessweekly.substack.com/

LinkedIn: https://www.linkedin.com/in/jasonmikula/

Buy His Book (use promo code BaaSIsland for 20% off) here

Follow Alex:

YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos

LinkedIn: https://www.linkedin.com/in/alexhjohnson

Twitter: https://www.twitter.com/AlexH_Johnson