Data-driven disruption

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Note from the editor

Fintechs are seeing data as a difference maker as they aim to take a broader swath of financial services business.

A leading data aggregator wanted to improve its relationship with banks. So it hired bankers.

In competitive fields like cross-border payments, some fintechs are finding "coopetition" with banks to be the key to growth.

On the regulatory side, six fintechs asked the CFPB for proactive guidance on the intersection of artificial intelligence, alternative credit data and unintentional bias. The FDIC's first chief information officer pinpointed technology as the best weapon to empower the underbanked. And a recent executive order shows financial data sharing is on the Biden administration's radar.

Meanwhile, banks and fintechs alike are facing threats from retailers' business models — and from a massive pandemic-era spike in malicious cyber activity. 

Banking Dive has published a number of pieces that lay out some of the challenges and successes disruptors are facing. We hope you find this collection valuable to better serve your customers' needs.

Dan Ennis Editor

Plaid taps former bank execs to help reach data-sharing goal

The company's mission to forge stronger relationships with banks and increase its API traffic comes amid a sometimes less-than-amicable interplay between data aggregators and financial institutions.

• Published July 23, 2021

Biden executive orders target bank mergers, financial data sharing

• Published July 9, 2021

Fintechs' letter, panel hearing put CFPB's lending, credit stances in spotlight

Varo, Square and others seek clarity from the bureau on 'disparate impact,' while lawmakers debate putting the agency in charge of credit reporting.

• Published June 30, 2021

Fintechs attack cross-border business payments as banks, legacy players rush to innovate

Nonbanks are gaining ground, mainly with small-company customers, but target larger ones, even as competition gives way to symbiotic "coopetition" with banks.

• Published May 26, 2021

New FDIC CIO: 'Technology is the best enabler of banking the unbanked'

"I think the vectors of success for dealing with the unbanked are going to be digital in nature," said Sultan Meghji, who worked on an aid mission to help implement digital banking in Africa.

• Published Feb. 23, 2021

Niche banking could safeguard challengers, incumbents from big tech, retail threat

JPMorgan CEO Jamie Dimon called out Amazon, Apple, Facebook, Google and Walmart in a shareholder letter, saying, "Their strengths are extraordinary, with ubiquitous platforms and endless data."

• Published April 9, 2021

Square launches business banking, savings products

Banking will allow Square to strengthen client relationships as it targets sellers who use the company's payment devices and inventory-management products, analysts said.

• Published July 20, 2021

Inside Marqeta's plans to grow its 'card-as-a-service' offering

The card issuer and processor is differentiating through a flexible, API-based platform that helps clients launch card offerings in months instead of years.

• Published March 3, 2021

Chime, Current lead US banking app downloads in first half of 2021: report

• Published July 6, 2021

Remote work offers test for banks amid 40-fold surge in malicious cyber activity

• Published July 19, 2021

Data driven disruption in the banking industry

Banks and fintechs alike are facing threats from retailers' business models — and from a massive pandemic-era spike in malicious cyber activity. In competitive fields like cross-border payments, some fintechs are finding "coopetition" with banks to be the key to growth.

included in this trendline
  • Square launches business banking, savings products
  • Chime, Current lead US banking app downloads in first half of 2021: report
  • Fintechs attack cross-border business payments as banks, legacy players rush to innovate
Our Trendlines go deep on the biggest trends. These special reports, produced by our team of award-winning journalists, help business leaders understand how their industries are changing.
Davide Savenije Editor-in-Chief at Industry Dive.