Fintech Takes

Hello, and welcome to Source of Truth, a new podcast miniseries from Fintech Takes, sponsored by our friends at SOLO. This series is about information asymmetry (which is *the* enemy in financial services — especially in lending).  Information asymmetry (the gap between what the customer knows and what the financial service provider knows) explains most inefficiencies. It’s the reason why qualified applicants get declined for loans or approved for loans at rates much higher than they should have to pay. And it’s the reason why borrowers and human underwriters spend a mind-numbing number of hours locating, aggregating, and verifying information. We’ve added APIs, alternative data, and automation. Yet, the core process of collecting and trusting information still looks much like it did decades ago. Why is that? And what can be done to reshape that process in a more fundamental way? These are the questions that Source of Truth will explore. In Episode 1, I’m joined by Georgina Merhom, Founder & CEO of SOLO.  Georgina, a data scientist by training, unpacks how lending data is collected, verified, and (too rarely) reused. Highlights include: What the old-school branch lending process got right that digital still misses Why banks still burn through $30B each year on manual collection despite APIs The difference between standardized inputs (useful) and standardized outputs (misleading) This opening episode tees up the larger theme of the series: building systems that don’t just capture truth but create trust.  Because when information can be reused and verified, lenders and borrowers stop starting from zero. Subscribe now and catch the rest of Source of Truth. This miniseries is brought to you by SOLO. SOLO resolves and connects customer data across silos — so teams stop rekeying the same customer info for the hundredth time and finally move forward. Break the cycle at SOLO.one - That’s SOLO dot o-n-e. 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 Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos LinkedIn: https://www.linkedin.com/in/alexhjohnson Twitter: https://www.twitter.com/AlexH_Johnson Follow Georgina: LinkedIn: https://www.linkedin.com/in/georginamerhom/ Learn more about SOLO here.

Bank Nerd Corner is back with Kiah Haslett returning … not just as co-host, but as an official member of Fintech Takes!  That’s right, big news: Bank Nerd Corner will soon be its own podcast feed, with Kiah hosting (and Alex dropping in monthly as a guest).  Kiah’s podcast launches this September alongside her new weekly newsletter, Fintech Takes Banking! If you’re listening to this episode, you basically asked for it (sign up at fintechtakes.com/banking/newsletter-subscription). Now, onto Bank Nerding!  First up,  the topic that's going to end up on my tombstone when I die: open banking.  We dig into the CFPB’s sudden flip on open banking. JPMorgan Chase tried charging for data access, the Bureau hit pause on litigation, and now an accelerated rulemaking process is underway. Will banks get the green light to price data, or did Chase just overplay its hand? Is this the beginning of monopoly pricing in disguise? Next, Kiah schools Alex (and the rest of us) on why crypto firms are suddenly obsessed with national trust charters (what they are, why they matter, and how they could function as narrow banks in disguise). Stablecoin reserves, custody rules, and OCC oversight are all on the table. And finally, the Palmer Luckey-backed digital bank Erebor enters the chat, promising to be the new Silicon Valley Bank for startups, crypto, and defense companies. Their pitch: political connections will fast-track their national bank charter with the OCC. But can political connections really expedite a de novo charter without wrecking regulators’ credibility? 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 Kiah: LinkedIn: https://www.linkedin.com/in/khaslett/ Twitter: https://twitter.com/khaslett   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos LinkedIn: https://www.linkedin.com/in/alexhjohnson Twitter: https://www.twitter.com/AlexH_Johnson

Dan Murphy, Founder of Sunset Park Advisors and former CFPB official, shares his insider knowledge about the transformative journey of open banking regulations. He highlights the surprising bipartisan consensus that initially supported the rule and examines how JPMorgan's API fee strategy backfired, uniting various stakeholders against it. The conversation also delves into unresolved issues like data access fees, liability in cases of error, and the future of data portability in a rapidly changing financial landscape.

Tom Brown, a seasoned lawyer and investor, and PR Stark, Director of Machine Learning Research at FinRegLab, dive into the intriguing future of AI in finance. They discuss the transformative potential of agentic AI—systems that not only analyze but also make decisions. The conversation explores how AI can reshape customer loyalty, re-evaluate compliance roles, and why traditional banks may be surprisingly prepared. They highlight both opportunities and risks, emphasizing the need for innovative regulatory frameworks to ensure consumer protection in this rapidly evolving landscape.

Dive into the tumultuous history and ongoing culture war surrounding the Consumer Financial Protection Bureau. Explore fascinating anecdotes, like cockroach-infested offices and chainsaw-wielding regulators. Gain insights from former staffers about the agency's struggles against governmental overreach. Discover fresh updates on recent CFPB actions and their implications for the future. This engaging exploration sheds light on the vital role of consumer protection in financial markets while providing a captivating narrative throughout.

Guest Alex O’Rourke is a fintech advisor, lawyer, and AI cofounder who aids in understanding AI's roles. Joining him is Jay Budzik, Senior VP at Fifth Third Bank and an expert in applying AI in finance. They dive deep into agentic AI, discussing its potential to redefine customer interactions and loyalty by acting autonomously. The conversation highlights risks like compliance issues and ethical concerns, emphasizing the need for human oversight. It’s a fascinating exploration of how AI could reshape financial services for both businesses and consumers.

Alana Levine, Chief Revenue Officer at Fintel Connect and a seasoned growth marketer, joins to unpack how AI is transforming customer acquisition. She discusses the power of AI in pinpointing target customers with unprecedented precision while navigating the thin line of personalized marketing and privacy. The conversation also dives into the rise of ‘no click’ discovery and its impact on tracking, alongside the vital need for compliance in marketing strategies to foster trust in an AI-centric consumer landscape.

In this intriguing discussion, Simon Taylor, author of Fintech Brain Food and a fintech expert, delves into innovative solutions reshaping the industry. He introduces Alix, a service easing estate settlements, blending AI with human support. The conversation shifts to Narrative, an AI startup streamlining consumer complaint resolution. Finally, they explore Ogment AI's vision for agentic commerce, aiming to empower merchants in the era of large language models while tackling the challenge of brand representation. It's a blend of compassion, compliance, and cutting-edge tech.

Eli Corbett, VP and Deputy General Counsel at Affirm, and Chelsea Keegan, Chief Compliance Officer at Flex, share insights on compliance in fintech amidst the AI revolution. They emphasize that compliance can't simply be a legal afterthought; collaboration is essential among product, engineering, and legal teams. With regulators scrutinizing marketing language and AI-driven compliance evolving, they discuss the importance of nimble tech and cultural understanding over traditional audit methods. They highlight the unique compliance risks fintechs face compared to banks, advocating for proactive governance in this new landscape.

Explore JPMorgan Chase's bold pricing strategy for open banking API access, raising concerns about the future of fintech and consumer data access. Delve into the passing of the Genius Act, which introduces a federal framework for stablecoins, and its implications for banks and DeFi. The hosts also discuss the ethical issues surrounding prediction markets that bet on personal events, alongside amusing anecdotes from their Washington, D.C. visit, painting a vivid picture of the political context affecting financial innovations.