Wall Street Won’t Intimidate Walmart This Time

The retailer’s fintech partnership — and poaching of Goldman Sachs leaders — signals it’s serious about encroaching on Wall Street’s turf. For two years before the 2008 financial crisis, Walmart Inc. was embroiled in controversy over a plan to open its own bank, eventually withdrawing amid pressure from regulators and Wall Street lobbies. Some 14 years later, the retail giant is gearing up for an even more serious fight.
Walmart announced in January that it formed a partnership with Ribbit...

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Robinhood Crisis Reveals Hidden Costs in Zero-Fee Trading Model

For all its benefits, the “democratization” of the stock market can quickly devolve into recklessness. Turns out, no-fee stock trades can exact a very high price after all. Not only for the retail traders sitting on deep losses speculating on meme stocks, or for Robinhood, which faces recriminations for “gamifying” the frenzy that spun out of control and was forced to scramble for billions in fresh cash, but also for the stock market itself, which must reckon with the wild...

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Chime is now worth $14.5 billion, surging past Robinhood as the most valuable U.S. consumer fintech

Chime, the start-up that delivers banking services through mobile phones, has closed a fundraising that values the company at $14.5 billion, CNBC has learned exclusively.
 That lofty figure makes Chime the most valuable American fintech start-up serving retail consumers. Robinhood, the popular free-trading app, raised money last month at an $11.2 billion valuation. The moves show that even as investors punish the shares of established U.S. banks — the KBW Bank Index has lost...

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Square Becoming a Bank Is Brilliant. Here’s WhyThe last time any new type of bank appeared was 2010.

It may seem surprising that the fintech disruptor Square is reverting to an old format and become a bank. Square has helped so many small businesses expand their payment methods, embracing fintech ahead of other disruptors.

However, there is much more to this story. In fact, this strategic decision could be one of the best moves the company has made. Square's decision could start a revolution and revamp the entire financial institution structure to address the changes...

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Hedge Funds That Use AI Just Had Their Worst Month Ever

UX, iot Chalk one up for the humans. Hedge funds that use artificial intelligence and machine learning in their trading process posted the worst month on record in February, according to a Eurekahedge index that’s tracked the industry from 2011. The first equity correction in two years upended their strategies as once-reliable cross-asset correlations shifted. While computerized programs are feared for their potential to render human traders obsolete, the AI quants lagged behind their...

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The AI Hierarchy of Needs

Artifical Intelligence design UX Web IOT As is usually the case with fast-advancing technologies, AI has inspired massive FOMO , FUD and feuds. Some of it is deserved, some of it not — but the industry is paying attention. From stealth hardware startups to fintech giants to public institutions, teams are feverishly working on their AI strategy. It all comes down to one crucial, high-stakes question: ‘How do we use AI and machine learning...

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Could Google give fintech apps a needed boost?

Google Chrome Mobile FinTech AppFintech companies that have developed products for the under-served have a big challenge — reaching their intended customers. Google and the Center for Financial Services Innovation are hoping to change that. The tech giant and CFSI, a nonprofit dedicated to promoting financial health, have been collaborating on ways to help customers wade through financial apps in the Google Play store. They are also trying to guide developers on building...

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Deep Dive: Payments

Credit Card Digital PaymentNinety percent of Americans have used a credit card, but far fewer understand the underlying systems enabling their payments. So let’s dive in to see what happens when you swipe your card! Suppose you purchase some carrots from the grocery store. You take out your credit card to complete the purchase, and see a logo with “Visa” on it. That’s the card association. You’d usually see one of the four...

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