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

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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.

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ANECDOTE

Jason's Book

Jason Mikula wrote a book titled "Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models".
It's available for pre -order with a 20% discount using the code "BaaSIsland".

ANECDOTE

Evolve Data Breach

Evolve Bank and Trust suffered a massive data breach by Lockbit, a Russian cyber gang.
The leaked data includes sensitive information like SSNs, account balances, and internal emails.

INSIGHT

Lax Compliance and Security

Evolve's lax approach to AML, KYC, and KYB likely contributed to their security vulnerabilities.
Fintech companies prioritizing speed and cost over compliance when choosing partner banks is risky.

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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