Initial use cases for AI and machine learning typically relate to powering chatbots or improving fraud detection. But applying the technology to sales and marketing by pushing relevant messages to individual customers can yield tremendous benefits. AI and machine learning tools are quickly moving into the ‘must have’ category of technology needed to remain competitive in the financial services market.
The new Uber Pro Card offers rewards and faster payments to Uber drivers and couriers. This product is a result of a partnership with the card-issuing platform Marqeta, along with global payments firm Mastercard and workforce payments company Branch. A business checking account is also packaged with the card. Earnings can automatically be deposited into the Uber Pro Card account after every trip. The account also has a small credit line attached to bridge short-term cash shortfalls. Services like this support the needs of gig workers and are likely to continue to grow in popularity.
Customers expect versatile mobile banking apps, especially the younger ones. A recent Forrester study identified 7 must-have features that banks should add, along with 5 others that would help your company stand out from the competition. The must-haves include subscription alert tools, flexible ways to use rewards points, digital wallet integrations, account aggregation, automatic savings options, data management tools, and virtual card replacement.
Apple announced a new account for Apple Card that will allow users to direct their rewards balances into a high-yield savings account from Goldman Sachs. Users can also add additional funds from a linked bank account. The no-fee account will be managed from an easy-to-use dashboard within the Apple Wallet. This long-rumored product represents another foray into the banking world by a big tech company.
BaaS partnerships are likely to receive increased regulatory attention. Fearing the innovation may have gotten ahead of regulation, the OCC has signaled that they will be considering the risks of bank-fintech partnerships in the context of what might happen if one of the parties fails to meet their obligations. Banks will also be challenged regarding their abilities to adequately monitor and manage the risks posed by their partners. On the flip side, fintechs may find themselves vulnerable if they are dependent on a single small bank partner.
Does Elon Musk wish to create a ‘super app’? There’s speculation in banking that Musk has ambitions of using his on-again, off-again purchase of Twitter as the foundation for creating an “everything app” that would include social messaging, payments, and commerce similar to China’s WeChat app. He has mentioned “X” as a potential future for Twitter. This is thought to refer to X.com, a 1999 start-up that Musk created as an early online bank and ultimately became a part of PayPal. If that is really his goal, he will have a variety of regulatory, perceptional, and reputational obstacles to overcome.
