FinTech Collective

In a bold fusion of science fiction and finance, some ultra-wealthy individuals are turning to cryopreservation, freezing their bodies or brains in hopes of future revival. This trend is not just about cheating death; it's reshaping wealth preservation strategies for potentially centuries-long timeframes.   The intersection of cryonics and estate planning presents unprecedented challenges for the financial sector. How do we manage assets for clients who might be "temporarily deceased" for decades or centuries? This push for extreme longevity will drive innovation in long-term asset management, digital identity preservation, and multi-generational wealth transfer.   Increased life expectancy has already significantly impacted wealth management globally. Now, as we venture into the realm of "immortal" clients, the implications for estate law, trust structures, and the very concept of death are profound.   Wealth and asset managers will face their most chilling challenge yet: bridging the gap between current practices and the needs of a cryopreserved clientele. While cryonics remains unproven, its adoption by the ultra-wealthy signals a paradigm shift in wealth preservation. As cryopreservation techniques gain popularity, financial advisors might find themselves in a scene straight out of Austin Powers, tasked with defrosting not just their clients, but centuries of frozen assets. And when these clients awaken, will they find their fortunes as well-preserved as when they went into the deep freeze, or will they face the less groovy realization that their great-great-great grandkids have spent it all in Ibiza and St. Moritz? Featured Companies: Embroker, Flutterwave, MoneyLion, OpenSea, Plaid, Vestwell https://bit.ly/3xYgGly #fintech #fintechnews

The London Stock Exchange (LSE) is pulling out all the stops to reclaim its standing as a top destination for IPOs. In a bold move to enhance the UK's appeal, the LSE is introducing a suite of measures aimed at making the IPO process smoother and more attractive for companies eyeing the public markets. This initiative comes as a strategic counter to the increasing trend of UK companies opting for listings in the US, where the market conditions have been perceived as more favorable. This revitalization effort is timely. Recent high-profile de-listings, where companies like Flutter and Arm have moved their listings to the US, highlight a growing concern about the UK’s competitiveness in the global market. These moves underscore the allure of the deeper capital pools and higher valuations often found on Wall Street, a trend the LSE is keen to reverse. As the LSE rolls out these new measures, the financial community will be watching closely to see if this market makeover can successfully “bring it home” to the UK. So, hey Jude, don’t let [us] down! Featured Companies: Tivita, Plaid, Vestwell, Termii Group https://bit.ly/3VWtYXH

If you tried going to a car dealership this week, chances are it was back to the dark ages of pen and paper business and all repairs have ground to a stop. A cyberattack on CDK has caused mass-scale shutdowns in thousands of dealerships across the country. While archaic, CDK’s software powers the backbone of operations in over half of car dealerships in the US. Dealerships are a worst-case scenario for cyber hacks given the amount of sensitive consumer data that’s handled in transactions, the large amount of business that’s done, and limited IT expertise and budget to update oftentimes very outdated systems. Demands have also become more outrageous – CDK’s hackers are demanding tens of millions in exchange for unlocking dealerships across an industry that topped $1.2 trillion in the US last year. Featured Companies: MoneyLion, Simetrik https://bit.ly/4eJ4NjX #fintech #fintechnews

Amongst the many benefits of using a credit card - rewards, credit score building etc. - chargeback protection is one of the most important features for consumers. Once considered a last resort option, US consumers today have become more acquainted with using credit card disputes. According to the Wall Street Journal, consumers disputed 105m charges in 2023 for ~$11b in volume, up from $7.2b in 2019.    Theoretically, customers should try to make an effort to resolve disputes directly with the merchants before turning to their bank, but many are choosing to skip that step. Some go so far as to misuse the process entirely to get free items, known as “friendly fraud.”    As account-to-account (A2A) payments become more prolific with companies like Plaid launching Pay-by-bank checkout options, this type of friendly fraud behavior may no longer be possible. It will be up to merchants to entice consumers to use A2A, which have historically been more welcomed by B2B payments. Until then, keep an eye out for the frenemies. Featured Companies: Plaid, mattilda., Underline, Flutterwave https://bit.ly/3VFv89I

The family office scene in Asia is booming, but it's not without its quirks. At a recent Singapore conference, Edoardo Collevecchio of Oppenheimer Generations Asia shared a bizarre encounter: a supposed executive at another “family office” turned out to be a complete fraud. This highlights a growing trend of imposters trying to hustle their way into the industry.    Asia's rapid growth in family offices, fueled by attractive tax breaks and easy visas, has unfortunately attracted scammers.  Despite these shenanigans, the future looks bright. According to UBS’s 2024 Global Family Office Report, the Asia-Pacific region is set to become a top investment destination, with over a third of family offices planning to increase allocations there. So, while the fraudsters may think they're slick…They are probably no match for Ruprecht in Dirty Rotten Scoundrels. Featured Companies: CapIntel, Termii Group, Antler Link to newsletter here: https://bit.ly/4b5iqXJ #fintech #fintechnews

In an era in which innovation should be creating the space for more optionality at lower costs, the opposite shift seems to be occurring in the world of payments. Instead, consumers have been getting squeezed from all angles.    The move to cashless establishments, especially accelerated during COVID, has been a particular problem for low income and older consumers that don’t always have access to alternative forms of payment. The solution? You may jump to the logical answer of accepting cash once again - especially given the historical precedent of paying with cash to receive a discount - but you’ll have to guess again. Rather, businesses have installed reverse ATMs, charging fees of $1-6 to ingest cash and produce temporary debit cards.    Even premium cardholders are not exempt from these challenges. Amex fees have historically limited its acceptance, but this issue has worsened recently. At the Money2020 conference in Amsterdam this week, we found ourselves having to put away our Amex cards, with only Visa, Mastercard or Maestro being accepted for coffee purchases around town. Adding to this trend, major marketplaces like eBay have announced they will stop accepting Amex too.   This begs the question - will Visa and Mastercard continue to eat the world, or is there some other payment solution that will emerge as the happy medium between merchants and consumers? Featured Companies: Vestwell, Plaid, CapIntel, CoinLedger, Sabi https://bit.ly/45nbPXj #fintech #fintechnews

In a historic shift, Wall Street has officially transitioned to T+1 settlement, shortening the time it takes to finalize stock trades from two days to one. This change, aimed at reducing counterparty risk and enhancing market liquidity, marks the most significant adjustment in trade settlement in over a century. This shift is crucial for the future health of markets, representing a long-sought victory for regulators. By lowering trading costs and making the settlement process more efficient and reliable, it enhances the overall market infrastructure. The move to T+1 settlement will encompass stocks, corporate bonds, exchange-traded funds, mutual funds, and options. However, this transition will require significant adjustments from US market participants. As the rest of the world’s stock markets adapt to this new speed, one can't help but wonder: will international authorities keep up or will it all look a bit like the commodities trading pit in “Trading Places” when Winthorpe yells "Sell 30 April at 142!" Featured Companies: Flutterwave https://bit.ly/3Vms7wd #fintech #fintechnews

In realizing what potentially is a client’s worst nightmare, Google accidentally deleted the private Google Cloud account of an $125b Australian pension fund. While Google claims the mistake has never happened before and is very much an isolated incident, this unfortunate event does little to calm the nerves of companies who were already reluctant to move their data to the cloud for fear of leakage or erasure.   Of all the industries who have been embarking on a long journey to migrate to the cloud, financial institutions are perhaps the most fearful of loss of data or leaking highly sensitive information. In addition to storing data, asset managers like Fidelity also need to be able to create insights into its customer base. Fidelity Investments announced that in the first quarter of 2024, the number of 401(k) accounts with balances of $1m or more rose to a record figure, with much of it driven by stock market gains. Although millionaire retirement accounts continue to be rare (and generally old), this data points could point to account balance growth overall which would be much needed given how underfunded America’s retirement pool is. So as long as nobody accidentally hits ‘delete’ on those! Featured Companies: mattilda. https://bit.ly/3VgjSBT #fintech #fintechnews

As AI continues to revolutionize customer service, it's clear that not all AI solutions are created equal. For example, a clear disparity exists between the success of Klarna’s customer-facing AI assistant and the reported struggles of the UK's HMRC (HM & Revenue Customs) customer service AI assistant. Klarna's AI, powered by OpenAI, has been a game-changer: efficiently handling 2.3m conversations in just one month and maintaining high customer satisfaction levels. This AI solution has cut average resolution times from 11 minutes to just 2 minutes. Implemented well though, AI-powered customer support can have an enormous positive impact. Klarna expects an additional $40m in annual revenue. Who knew a chatbot could be such a cash cow? The contrasting outcomes of AI-driven customer service are a powerful reminder that merely implementing AI solutions is insufficient. The success of these solutions depends on their technological nuances and how they are practically applied. After all, who knew that going from “human touch” to “helpline horror” could be so taxing? Featured Companies: Flutterwave, WheeKeep, MoneyLion, CapIntel, Embroker, mattilda., Matta, 1inch Network https://bit.ly/4brN52g #fintech #fintechnews

If you’re thinking about buying tickets for Roland Garros in the next few weeks, the 25 Qualifying Day tickets may seem to be a steal…until you hit checkout and see the additional 16% in “management fees” that you’re also on the hook for. Luckily the starting price tag is low so you’re likely still in the clear. However, that may not be the case for the Premium Privilège Package.   This experience isn’t unique to grand slam events unfortunately. Across both physical and digital purchasing journeys, surprise fees are popping up left and right. This sneaky strategy lets businesses compete based on fixed price, but charge more on the back end, which reduces buyers’ abilities to make their decisions with a transparent view of best pricing throughout the market.    President Biden has moved hidden fees up in his long list of priorities, with Congress introducing a bill last year to “limit and eliminate excessive, hidden, and unnecessary fees imposed on consumers.” In the meantime, in activities from concert-going to going out to eat, it’s important to remember that what you see on the menu may not be as good as it appears – including the price tag. Featured Companies: MoneyLion, Simetrik, Ocrolus, Flutterwave https://bit.ly/3wGCsJN #fintech #fintechnews