Weekly analysis & opinion highlights 21 August 2020

PYMNTS looks into Apple’s decision to go for subscription bundles via “Apple One”, combining services such as Apple Music and Apple TV into one offer for iPhone and iMac users. The main benit and attraction point that online subscriptions have involves the service revenues, which have a constant increase even when the hardware sales remain flat. Read more

Riccardo Conte, founder at Virtus Flow, looks into the future path of the financial industry, represented by banking automation. Automation has become a key for banks and financial institutions, fulfilling the 3 key features for the 2020-2021 industry: digital transformation, improvement of customer experience and cost management. By moving from a customer-centric automation and focusing instead on the back-office automation, new offerings are available in terms of competitive advantage during these times. Read more

Fintech Business analyzes the effects of AI for InsurTech. Among a panel of interviewed executives from the InsurTech industry, only 51% responded that they considered AI to be an important element for their company’s success. For the insurers struggling to remain relevant in their field, Fintech Business suggests two approaches: either investing in technologies that help and support their business model or seeking new partnerships in order to evolve. Read more

In a recent Forbes’ article, Megan Gorman explores how fintechs are dominating the Paycheck Protection Program (PPP). Due to the fact that fintechs have been long targeting the small businesses which were able to work with PPP, the end result was positive. However, for the small businesses, there are still some disadvantages that fintechs have not perfected yet, such as automation, which can be seen as frustrating. Another issue that clients brought up when working with fintechs was the lack of humanization throughout the process, which is at points was nameless and faceless. Read more

Chuck Waterfield, developer of Microfin, a financial planning software in the microfinance industry, draws a parallel conclusion on the similarities between microfinance and social media platform Facebook. Although both microfinance and Facebook were presenting at the beginnings an offer to make a difference for people in terms of services, the mission changed. Now Facebook has the status of one of the most profitable businesses in the world and microfinance became a booming industry, with businesses going from an NGO project phase to for-profit corporations. Read more

According to the World Economic Forum, with the rise of the pandemic, digital innovations have provided banks an important support. As such, fraud for credit card transactions can be overcome, by implementing AI technology. Furthermore, advanced analysis techniques to enrich the banks’ client portfolio has been a widely adopted practice among Swiss banks. Not only does data analysis help banks meet their clients’ demands better, but it also helps them when it comes to the legal and regulatory requirements. Read more

According to Robin Newnham, Head of Policy Analysis at the Alliance for Financial Inclusion, the 2008 financial crisis was a preparation for the current times of pandemic. With the latest reforms under the Basel Committee (Basel III), financial institutions are required to hold minimum high-quality capital and liquidity buffers. In addition, the standard setting bodies are in favor of using technological innovations in order to increase financial stability. Read more

For the insurance industry, further challenges are ahead, primary due to the fact that customers are rated in a discriminatory manner. Sam White, chief executive of Pukka Insure, explained during an online MoneyNext Summit panel the downsides of personalization in insurance. According to White, the main problem lies with biases derived from historical data: “With things like credit scoring and that sort of real detail that we can get down to from a postcode level analysis, we are going to run the risk of actually excluding large swaths of people who really do need the support”. Read more

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