Gopi Tammana

There has been a tremendous amount of news on Bilt Rewards partnership with Wells Fargo. Here is my take: Credit card issuance is an extremely competitive game, when Bilt went to market to seek a banking relationship, some banks leaned in and others leaned out. Wells Fargo leaned in because the opportunity is tremendous and with the appropriate calculation around mortgage conversion, plus % spent on rent vs. other, the partnership could be massive. There are many comparables of co-branded credit cards being hugely successful, so this structure/deal was not completely out of the ordinary. Bilt executed amazingly well and reached 1+ million customers in 18 months. GTM is always challenging, no matter what. Wells Fargo is now losing $10M+ a month and the partnership will end in 2029. The Bilt team is not stupid. They realize the partnership was unfairly struck and will need to figure out how to provide incremental value to Wells Fargo and/or another bank. Prediction: Their customer base will continue to scale and as it does, they will help Wells Fargo cross-sell additional services. Bilt will easily hit 5+ million rent-paying customers, of which a large percentage of them will purchase a home. This “mortgage pipeline” is extremely valuable and needs additional time to play-out. It will certainly become an attractive way for banks to originate mortgages. However, it will be very challenging to drive an increase of spend on the Bilt card within other areas of spend. Is the mortgage origination business sufficient for Bilt to grow into their valuation? What else is needed from their business model to be successful? It’ll be super interesting to follow closely, now that the cat is out of the hat!

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Citi leans on tech modernization to fix data quality management failings. The company invested more than $12 billion in technology last year. They say that they have reduced the time it takes to book loans, automated controls for their traders to reduce errors, moved risk and analytics to a cloud-based infrastructure and increased the resiliency of their platforms to reduce downtime. Citi spent about $3 billion last year on transformation related work and plan to increase that this year. #digital #banking  #technology

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Last week's WSJ article highlighted the growing disappearance of safe-deposit boxes from banks, leaving long-time customers scrambling for alternatives. Count me as one :-) This shift reflects a broader trend in banking toward digital transformation and cost-cutting. But is it the right move? Safe-deposit boxes may seem outdated, but they serve as a unique touchpoint for building loyalty. In today's banking landscape, switching banks is easier than ever. Customers can open accounts, transfer funds, and manage their finances with a few taps on their smartphones. With fewer opportunities to foster meaningful relationships with customers, eliminating a valuable service like safe-deposit boxes could further erode customer loyalty. As one expert quoted in the article pointed out, “A safe-deposit box is the hardest account you can close.” That’s a powerful retention tool banks should reconsider. While home safes might seem like a convenient alternative, they come with their own set of security risks. Home security systems, even the most advanced ones, are vulnerable to hacking and malfunctions. Additionally, in many cities, law enforcement agencies prioritize violent crimes over property offenses, making home burglaries a lower priority. This leaves individuals with limited recourse in the event of a theft.  Banks, on the other hand, offer secure, insured storage that home systems simply can't replicate. The demand for secure storage hasn’t disappeared—it's evolving. Rising interest in gold and other physical assets, as mentioned in the article, underscores the need for secure storage solutions. Rather than abandoning safe-deposit boxes, banks could reimagine them as a premium service for customers looking for additional security for valuables and essential documents. At a time when digital banking tools are largely commoditized, tangible services like safe-deposit boxes can set banks apart. Eliminating them risks ceding this competitive edge to private vault operators, who are already stepping in to fill the void. Safe-deposit boxes may not be flashy or tech-driven, but they represent something invaluable: trust. As banks move further into the digital frontier, maintaining these tangible services could serve as a reminder of their foundational role in protecting customers and their assets. #Banking #CustomerLoyalty #SafeDepositBoxes #InnovationInBanking #WSJInsights https://lnkd.in/g2qGpijk

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🚨 CFPB Sues Major Banks Over Fraud on Zelle: A Wake-Up Call for Consumer Protection 🚨 The Consumer Financial Protection Bureau (CFPB) has taken legal action against JPMorgan Chase, Bank of America, Wells Fargo, and Early Warning Services (operator of Zelle) for failing to protect consumers from rampant fraud on the Zelle payment network. Since its launch in 2017, Zelle has facilitated billions of transactions, but hundreds of thousands of fraud complaints have been reported, with over $870 million in consumer losses tied to its vulnerabilities. The CFPB alleges that these financial giants rushed Zelle to market without implementing effective safeguards, leaving consumers exposed to scams while offering minimal support when fraud occurred. 🔍 Key Allegations 1️⃣ Failure to Prevent Fraud: Zelle’s weak identity verification allowed scammers to exploit its features and redirect payments to fraudulent accounts. Criminals easily moved between banks due to the lack of communication and fraud tracking across the network. 2️⃣ Ignoring Red Flags: Despite receiving hundreds of thousands of fraud complaints, the defendant banks failed to act on these patterns to prevent further fraud. Banks allegedly violated Zelle’s own rules by not reporting fraud incidents consistently or on time. 3️⃣ Abandoning Fraud Victims: The banks failed to properly investigate customer complaints or reimburse victims, violating federal laws like the Electronic Fund Transfer Act and Regulation E. CFPB’s Enforcement Goals Halt Unlawful Conduct: Stop banks and Zelle from engaging in unfair and deceptive practices. Consumer Redress: Obtain restitution for harmed consumers and penalties to fund victim relief. Enhanced Safeguards: Implement stricter fraud prevention and reporting protocols. 💡 Takeaways for Consumers Stay Vigilant: Scammers often exploit payment networks, particularly during the holiday season. Report Scams: Submit complaints about payment fraud to the CFPB at (855) 411-CFPB or via their website. The Bigger Picture This lawsuit underscores the critical need for consumer-first protections in financial technologies. Payment networks like Zelle must balance convenience with robust security to ensure trust and safety for users. AreEn Source - https://lnkd.in/eqanfzbh 💬 What are your thoughts on the CFPB’s actions? Have you or someone you know faced fraud issues with Zelle or similar platforms? Share your insights below to continue the conversation. Source: Consumer Financial Protection Bureau #ConsumerProtection #Zelle #FinancialFraud #CFPB #BankingSecurity #ConsumerRights #FinTech

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https://lnkd.in/g98vGiRW This is well deserved recognition of the efforts of RBI over last decade in putting risk and compliance first.

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This is a good example of how we're seeing the role of the COO evolving to gradually encapsulate more responsibilities - data is a big one of them. Where once data responsibilities almost always sat with a CIO or CISO and compliance with Legal, it's not uncommon for today's COO to have at least some share of data, analytics and privacy-related duties. This means it's absolutely imperative that Chief Operating Officers are breaking down silos, working closely with frontline employees - and those directly collecting, handling and managing data - to understand how data governance is playing out in their businesses. #COOs #compliance #data

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Someone somewhere said a few years back to me that the next generation of Bank CEOs will be tech bread, time tested executives. As the financial sector has transitioned full on to the technology sector ( major banks are technology institutions that offer financial services) this reality seems very possible in the very near future. Wonder what Jamie Dimon ‘s replacement going to be. Banks like JPM and BofA have created tremendous technology, but with slow adoption rates from all tiers of clients the issue is not the technology itself. It is how it speaks and gets visualized as a solution to the masses. We will see… https://lnkd.in/eSz8GeRV

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Silicon Valley Bank's latest State of the Markets report is out with some important updates and insights on the coming Series A crunch, Zombiecorns, and a VC funding raising. An overall important read for the ecosystem as you position your startup and fund to the realities of the current market as you look ahead. - Seed deals are currently outpacing Series A deals by a ratio of 3:1. - AI investment is booming and the sector has minted 28 new unicorn companies over the past 18 months. - A growing minority of VC-backed tech unicorns are unprofitable and face declining year-over-year sales. https://lnkd.in/gPn5J8e7 #startups #VC #svb

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Remaining relevant a continuing worry by many a product management professional. Some may be asking... are seeing the emergence of FedNow becoming the instant payments system for consumer payments and RTP for business payments? Perhaps with due diligence on payers with high dollar payment requirements, RTP could allow payment limit exceptions for those payers. Assuming RTP has anticipated such evolution and included the systematic capacity to allow such payment limit exceptions. Clearly, some banks are better positioned to join new instant payment networks than others. Those RTP banks claiming business case analysis for joining FedNow is the cause for hesitation to join FedNow, were not systematically/operationally positioned for the multiple instant payment networks. This report concludes with this: "A important reason for the Fed starting FedNow was to make real-time inroads with smaller U.S. financial institutions that were leery of joining the RTP network run by their larger rivals." There is no business measurement for "leery". Insecurities by people in community banks are dumbfounding. Confidence is just one of many leadership skills. Being leery, does not put things on a growth trajectory. Leery does keep you at station-keeping, without a doubt. #instantpayments #FedNow #leery #banks

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“The development of full artificial intelligence could spell the end of the human race.” – Stephen Hawking A sad and disturbing experience with delivery of an order placed on bigbasket.com. Delivery executive arrived before the scheduled time and placed the items as requested. Usually, I don't check the itemized list, but today I ran a check and found that against my order of 2 quantities of a certain item, only 1 was delivered. I brought it to the delivery executive's notice. He mentioned that whilst placing the items in the bag, 1 packet tore and he forgot to replace it with another. He courteously agreed to deliver the missing item after a couple of his deliveries were completed. (In hindsight, I could have told him that I will raise a request for a refund and he didn't have to bother coming back). He left with the agreement that he will come back in a while. He had not marked the order as 'delivered' yet. After about 40 minutes, I received a call from the delivery executive saying that he will not be able to replace the missing item as he is not being allowed to do so. He kept requesting me not to raise a complaint against him as that will result in his ID being cancelled / disabled. I politely mentioned that I don't intend to raise a complaint against 'him', but I will raise a ticket for the missing item in the service app and expect that a long-standing customer as I have been, the service team will refund the amount refunded for later use. To my surprise, since the order was not marked 'delivered', the customer representative (I am yet to understand if it was a human or chatbot) refused to take note of my experience. I was trying to type the whole incident, but thought speaking to someone (a human) would be easier and requested for a callback. (By the way, it's been ~3 hours and I have not received a callback). All this while, the delivery executive kept calling on my registered (personal) mobile number (through different numbers - perhaps one provided by bigbasket.com, another his own - which scares me to a different level now). He kept requesting me not to raise any complaint. His pleading with me like this got me thinking - In this technology-overdependent, convenience-based, #gigeconomy that we are all party to, have we completely lost the #humantouch? Can someone not genuinely make a mistake such as tearing a bag of a perishable item? Does he or she have to be so scared of its consequences? Is this not exploitation or workplace toxicity? In the race for next-gen computing, solving for global problems, testing limits of inhabitable space in the universe and using AI / ML tools for almost every aspect of life, are we getting infinitely distant from ourselves as a human race?? By the way, bigbasket.com, I can provide you my order reference number and give more details regarding the above, if someone from your team reaches out to me. Let's resolve this without any of your executives being reprimanded for a genuine mistake, please!

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I believe there needs to be a balance between mandatory reimbursement and holding victims accountable for their actions. Forcing a 100% reimbursement would likely lead to significant financial losses for the affected institutions, potentially resulting in job cuts and higher service costs. Additionally, consumers might become complacent, relying on the safety net of government "insurance" without taking personal responsibility. It’s crucial for businesses to implement robust and effective controls to safeguard against fraud, with continuous regulation and monitoring to ensure compliance. From the consumer’s side, there must be a demonstrated effort to stay vigilant, follow institutional and government recommendations, and maintain digital literacy. Consumers should stay informed about emerging threats and adopt suggested prevention measures and behaviors to protect themselves from falling victim. Finally, the government must address the underlying socioeconomic issues that drive individuals to crime as a means of income or leave them inadequately educated to recognise and defend against these threats.

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Say Cheese and Pay with Ease: Federal Bank's SmilePay Takes Payments to the Next Level! In a world where the lines between technology and magic are becoming increasingly blurred, Federal Bank has launched a product that is truly smile-worthy— SmilePay. Forget swiping, tapping, or fumbling with your wallet. Now, all you need to do is smile, and your payment is processed. It’s like a selfie, but one that actually gets you something in return. It’s fast, it’s fun, and let’s be honest, it’s pretty fabulous! Innovation or Just Pure Magic? You might be wondering, “Is this innovation or just wizardry straight out of Hogwarts or Kalki 2898 AD?” The answer is both! SmilePay is a brilliant blend of the latest advancements in artificial intelligence, machine learning, and biometrics. It leverages facial recognition technology to make payments as seamless as possible. This isn’t just about convenience; it’s about creating an experience—a moment of joy in an otherwise mundane transaction. It’s also a great conversation starter. Imagine the stories you can tell: “Oh, you still use a card to pay? I just smile!” Riding the Wave of Industry Trends SmilePay comes at a time when the payment industry is undergoing rapid transformation. From contactless payments to digital wallets, the race is on to make payments faster, more secure, and more integrated into our daily lives. The Lighter Side of SmilePay But let’s not forget the most important part—SmilePay is fun! It’s a quirky, lighthearted approach to payments. It encourages people to smile more, which is something we could all use a bit more of these days. Of course, there might be some challenges. What if you’re having a bad day and don’t feel like smiling? Will a smirk work? Or how about a Rajinikanth smile - Magizchi? These are the questions the fine folks at Federal Bank have probably considered. And if not, well, there’s always room for updates—SmilePay 2.0, perhaps? Embracing the Future Jokes aside, Federal Bank’s SmilePay is a step in the right direction. It’s about leveraging technology to create a better customer experience. It’s about embracing change and finding new, innovative ways to make our lives easier. And it’s about smiling more, which is never a bad thing. So next time you’re at a store that supports SmilePay, go ahead—flash a grin and pay with ease. And remember, in the world of payments, those who smile, win! So, keep smiling, folks. You never know, your next purchase might just depend on it! #GFF #GFF2024 #GlobalFintechFest #India Global Fintech Fest #NPCI National Payments Corporation Of India (NPCI) #SmilePay #Innovation #Fintech #AI #ArtificialIntelligence #MachineLanguage #Payments #FutureOfBanking #Biometrics #FederalBank #SayCheeseAndPay #Banks #DigitalBank #Rajinikanth #SayCheese #Kalki2898AD

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Looks like the limitations on TD’s ability to grow in the US have become a reality - and given there is usually not an end date, said limitations can continue to apply for years, and their removal must be applied for and granted when/if regulators deem that appropriate. If there is a positive aspect to this development, it might be that these limitations are apparently only going to apply to the retail bank in the US, leaving TD’s other businesses with US footprints free to grow their businesses. Although the specific details of this development were not known, the Bank and the market have expected this news, which may mitigate (somewhat) any short term impact to the bank and its share price. The story about the longer term implications for TD and its growth prospects will play out in the weeks, months and years to come.

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📢 I'm excited to share an inspiring episode of our Banking on Innovation podcast!🎙️FIS CTO Firdaus Bhathena joins Personetics' Jody Bhagat to discuss the transformation of banking; from facilitating simple transactions to becoming an integral part of customers' everyday lives. 👉 "It's not just developing the insight, but also how you then make it actionable so you know, at the moment, giving people the ability to act on it in a way that relates most to them." 📲 Please tune in to hear Firdaus share his forward-looking vision for the future of banking in this exclusive conversation with Jody.   Discover how FIS and Personetics are partnering to democratize financial guidance for all. For the podcast: https://lnkd.in/dwygxYux For a recap article: https://lnkd.in/dc4c5nAu #partnership #podcast #ai #artficificalintelligence #personalization #digitalbanking #mobilebanking #FIS #customerengagement

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📢 I'm excited to share an inspiring episode of our Banking on Innovation podcast!🎙️FIS CTO Firdaus Bhathena joins Personetics' Jody Bhagat to discuss the transformation of banking; from facilitating simple transactions to becoming an integral part of customers' everyday lives. 👉 "It's not just developing the insight, but also how you then make it actionable so you know, at the moment, giving people the ability to act on it in a way that relates most to them." 📲 Please tune in to hear Firdaus share his forward-looking vision for the future of banking in this exclusive conversation with Jody. Discover how FIS and Personetics are partnering to democratize financial guidance for all. For the podcast: https://lnkd.in/dwygxYux For a recap article: https://lnkd.in/dc4c5nAu #partnership #podcast #ai #artficificalintelligence #personalization #digitalbanking #mobilebanking #FIS #customerengagement

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🌟 During a recent Finextra TV interview, Narendra Mistry, CPTO for Universal Banking at Finastra, highlighted the need for banks to swiftly adapt to evolving technology and customer expectations. 🔎 He emphasized the importance of efficient core banking systems that foster innovation at scale and pace, while also navigating AI and data with a strategic focus on mindset and business services. Although lean systems, such as those used by neo and digital-only banks, are beneficial, long-term growth necessitates a clear vision, a robust organizational culture, and a wide range of capabilities. For established banks with existing infrastructures, symbiosis – deploying next-gen solutions alongside current ones – can facilitate the delivery of exceptional experiences, competitive advantage, and smooth transitions when needed. Watch the full interview here: FinextraTV: https://okt.to/wIf9hS

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