Regulatory Landscape - Senator Lummis urges US regulator to finalize open banking rule [1] - The open banking rule supports cryptocurrency [1]

🗞️ Canada’s British Columbia plans to permanently ban new crypto miners from connecting to its electricity grid.🗞️ A coalition is urging the CFPB to maintain strong open banking rules against bank lobbying.🗞️ CEOs, including @brian_armstrong and @SergeyNazarov, join the Federal Reserve: Payments Innovation hearing.@JennSanasie hosts "CoinDesk Daily."Thank you to @MidnightNtwrk, @Stablecoin and @OwlTing 🫵 for being a sponsor of the CoinDesk media network. ...

Crypto and fintech groups urge Trump administration to defend CFPB's open banking rule https://t.co/6w5YIkbbJO ...

Open Finance & Innovation - Openness fuels iteration and progress, benefiting consumers through faster innovation and cheaper products [2][3] - Closed access slows innovation, allowing large players to control APIs and pricing, shifting from value creation to rent collection [4] - Open banking promises portable user data and permissioned access, contrasting with platforms that capture distribution and control [5][6] Regulatory & Policy Implications - The Consumer Financial Protection Bureau (CFPB) is rewriting rules for financial data access, determining whether open banking becomes a foundation for innovation or a closed system [3] - Section 1033 of Dodd-Frank should empower individuals with control over their financial data, not restrict it [7] - The industry emphasizes the importance of submitting public comments to the CFPB by October 21 to advocate for open systems [7][8] Crypto & Blockchain Perspective - Crypto, specifically public blockchains, exemplifies permissionless innovation through open ledgers [6] - Public blockchains operate at the speed of code, enabling anyone to build without permission [6] Strategic Imperative - The industry believes that failing to embrace open systems will result in being left behind [8]

Core Insights - FIS has partnered with Glia to integrate AI technology into its Digital One suite, aiming to enhance customer service for retail and business banking products [1][2] - The integration is designed to provide financial institutions with tools for a more personalized and efficient customer experience, addressing routine inquiries with AI while escalating complex issues to human agents [1][4] Group 1: Technological Integration - The collaboration allows banks and credit unions to benefit from a virtual workforce while maintaining high-touch, personalized service [2] - The AI agents are programmed to handle basic inquiries immediately, which is expected to reduce wait times and improve first-call resolution rates [4] - The service is context-aware and available across various platforms, including mobile apps and web platforms [4] Group 2: Operational Efficiency - The integration aligns with FIS's Banking Modernisation Framework, emphasizing open banking as a key element for transforming operations and customer experiences [3] - Bank staff can focus on more complex customer interactions rather than repetitive tasks due to the AI's capabilities [3] - The AI system can manage account inquiries, transaction support, and provide basic financial advice outside standard banking hours [5] Group 3: Strategic Developments - Glia's CEO highlighted that the AI-powered platform allows organizations to achieve both efficiency and customer experience without compromise [5] - In May, FIS launched the Money Movement Hub, which streamlines payment processing across multiple networks for financial institutions [5]

Group 1: Global Payments and Technology - Global Payments has launched its Genius payments technology in higher education, targeting on-campus merchants and facilities in the U.S. and Canada [1] - The Genius system includes features like inventory management and support for various payment methods, marking a shift towards a more payment-focused strategy [7] - The rollout follows a significant acquisition and divestiture strategy, including the sale of its issuer business to FIS for $13.5 billion and the acquisition of Worldpay for $22.7 billion, expected to close in early 2026 [8] Group 2: Lloyds Banking Group and PayPoint - Lloyds Banking Group is closing 136 branches as part of its digital transformation, while PayPoint has seen over £3 million (approximately $4 million) deposited using its barcode cash deposit feature since August [2][4] - The barcode cash deposit feature allows customers to deposit cash into their debit accounts without visiting a traditional branch, with a limit of £300 per transaction [3] Group 3: Walmart's OnePay - Walmart's OnePay fintech aims to provide banking services to underbanked populations and has recently expanded its offerings to include phone plans and credit card services [5] - OnePay is planning to introduce cryptocurrency trading and custody services, indicating a broader trend among banks and firms to tap into cryptocurrency demand [6] Group 4: BBVA and AI Integration - BBVA is utilizing Apple Intelligence's Image Playground to allow customers to design Visa-branded payment cards, starting with virtual cards and planning to introduce physical cards [9][10] - The bank has also partnered with Google to enhance its internal AI capabilities, including the deployment of generative AI tools [11] Group 5: Mastercard and Open Banking - Mastercard is expanding its open banking technology through partnerships, enabling account-to-account payments without requiring card details, which enhances user experience [12][13] Group 6: Coinbase and Stablecoins - Coinbase has introduced P2P transfers for USDC stablecoins, providing a fee-free alternative to traditional P2P payment apps [14] - The platform has also enabled users to lend USDC stablecoins with yields up to 10.7%, enhancing its competitive position in the payments landscape [16] Group 7: India's UPI and Biometric Authentication - India's Unified Payments Interface (UPI) is set to implement biometric authentication, allowing users to approve payments using facial recognition or fingerprints [17][18] Group 8: Ramp and AI in Finance - Ramp has launched an AI agent designed for accounts payable, automating tasks such as coding invoices and streamlining approvals, aiming for near 100% automation in certain workflows [19][20]

PayPal and BNPL Loans - PayPal has entered into an agreement with Blue Owl Capital to sell approximately $7 billion worth of its Pay in 4 buy now/pay later (BNPL) loans originated in the U.S. over the next year, while continuing to originate and service the loans [1] - The Pay in 4 service, launched in 2020, allows customers to split purchases into four interest-free payments over six weeks, with PayPal processing over $33 billion in BNPL payment volume in 2024, marking a 21% year-over-year increase [2] - PayPal has a similar loan purchase agreement with KKR for up to 40 billion euros of its European BNPL loans, indicating a strategic move to enhance its capital allocation and support the growth of its Pay Later portfolio [4] Market Trends and Competitors - There is a growing interest among asset managers and investment firms for short-duration BNPL loans, with Klarna and Affirm also engaging in significant loan purchase agreements with various investment firms [3] - Analysts suggest that while the agreement with Blue Owl is strategically beneficial for PayPal, the immediate impact may be minimal as the actual outstanding receivables for Pay-in-4 loans in the U.S. are likely a fraction of the $7 billion agreement [5]

Open banking comes at a price that benefits the biggest the most, writes @MarcRuby (via @opinion) https://t.co/cZTIgfgUJS ...

Core Insights - Deutsche Bank's CFO James von Moltke highlighted that the regulatory rollback in the U.S. is providing American banks with a competitive advantage over European banks [1][3] - Changes to leverage ratio rules may enhance U.S. banks' capacity to support market clients, potentially leading to margin contraction in fixed income and currency financing [2][3] Regulatory Environment - The Trump administration's efforts to loosen banking regulations have raised concerns in Europe regarding the competitiveness of European banks [3][4] - Von Moltke stated that while U.S. deregulation does not directly affect Deutsche Bank's operations, it will create a competitive disadvantage for European banks over time [3][4] Market Implications - The ongoing capital deployment by banks and private credit companies in fixed income and currencies is expected to continue, which may lead to margin contraction [2] - The balance between financial stability and growth is a critical consideration, as noted by von Moltke, indicating that the current regulatory environment may need reassessment [4] Open Banking Discussion - Dr. Bill Roberts emphasized the need for tailored approaches to open banking regulation, suggesting that legal powers may be more effective than relying solely on market forces [5]

Core Insights - Finclusion has entered the UK's motor finance market through a partnership with fintech company Sikoia to enhance car finance decision-making processes [1][3] - The integration of Sikoia's API will enable AI-driven document analysis and Open Banking data usage for income and affordability verification, leading to faster and more accurate lending decisions [1][4] Company Strategy - Finclusion adopts a dealer-first strategy to create a more efficient car finance experience, allowing dealers to receive expedited verifications via Sikoia's platform [2] - The partnership aims to serve customers who are often overlooked by traditional finance, thereby increasing access to car finance for underserved populations [4] Technology and Automation - Sikoia's technology automates essential parts of the customer verification process, providing a centralized solution for accessing customer data and delivering automated insights [4] - The integration of Open Banking with intelligent document automation is expected to enhance customer experience while maintaining full automation behind the scenes [4]