This Week in Fintech's Podcast A conversation with Patrick McKenzie
8 snips
Mar 20, 2025 
In this engaging conversation, Patrick McKenzie—a fintech writer and former Stripe employee—dives into topics like the evolution of payments and the societal impacts of generative AI-enabled fraud. He sheds light on the challenges of FDIC insurance and discusses public banking's role in improving financial access. McKenzie also explores the implications of quantum computing on bank security and the significance of his newsletter, Bits About Money, in making financial knowledge accessible and engaging.
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Episode notes
Generative AI Empowers Fraud
- Generative AI will empower fraudsters to create highly plausible fraudulent documents.
- Countermeasures should focus on triangulating observable data rather than just interrogating generated content.
Tailor Fraud Tolerance by Margins
- Payments providers must customize fraud tolerance based on each customer's business margins.
- A one-size approach to fraud rates can cause excessive losses or lost sales.
Banks' Cynical Approach to Zelle Fraud
- Banks bear legal responsibility for fraud under Regulation E but often choose to minimize losses cynically.
- Zelle fraud issues arise as banks try to avoid losses unlike fintechs who absorb risks.