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News and resources on retail banking, consumer finance and reinventing customer experience in finance.

James Berry

Why credit unions must learn to lean on fintech

James Berry - CEO, Great Western Credit Union
Discussion
Build vs. Buy Fintech Software: A Guide to Choosing the Best Approach for Your Product
Ketharaman Swaminathan

Ketharaman Swaminathan

  TY Yuri Kropelnytsky. Fintech: I'm going by the definition given in Why Banks Will Never Catch Up With Fintechs (Disclosure: I'm the author!). It resonates strongly with the Wikipedia description of the term:  "Fintech refers to firms using new technology to compete with traditional financial methods in the delivery of financial services." Spend Management Software: This description by Gartner does not say financial technology software. There's a list of leading vendors on that page. I've not heard anyone call them fintechs. ----- As I said, this is the classical definition at inception. Over time, the bank-disruption posturing of fintechs flopped. The industry started chanting the bank-partnership mantra. As a result, the scope of fintech - and, along with that, of financial technology software category - gradually expanded over time. Which is fine by me, as long as we know which version of "fintech" and "financial technology software" we're talking about - because there are huge differences in business model, TAM, and valuations depending on the specific definition used.  Not to muddy the waters but there's also BaaS, Embedded Finance, etc. now!
Build vs. Buy Fintech Software: A Guide to Choosing the Best Approach for Your Product
Yuri Kropelnytsky

Yuri Kropelnytsky

  Hello Ketharaman, thank you for reading and for your question. In reality, the classical definition of fintech is not limited to simply companies that compete with traditional banks, but many other financial services. And yes, this does include spend management (the example you stated). In our industry, we use the term 'fintech software' as an overarching category to describe all sorts of systems, including, but not limited to: payment apps, prepaid card apps, banking apps, remittance apps, money transfer apps, payment gateways, accounting & expense management systems, mobile wallets, lending apps, blockchain & cryptocurrency, compliance technology, and so on. There are many reputable sources citing this broader definition of fintech and the types of examples I stated, including Columbia.edu, Forbes Advisor, and CFA Institute. Would you please tell me your source that suggests corporate spending software is not considered financial technology software?
Build vs. Buy Fintech Software: A Guide to Choosing the Best Approach for Your Product
Ketharaman Swaminathan

Ketharaman Swaminathan

  Per classical definition, FINTECH is an industry type and primarily refers to companies that compete with traditional banks by offering bank accounts, debit cards, credit cards and other financial services products.  Going by that, I don't get the term "fintech software" used in this post.  Is it the same as core banking software, credit card management system, ATM switch, Online Banking, Mobile Banking and other financial technology software supplied by IBMs, Infosyses, Oracles, and other IT companies? If not, can you please give a few examples of what you call "fintech software" with specific reference to the industry verticals that use them?  Invoicing, procurement and other software used by corporates surely have an element of money but they're not considered as financial technology software. By the same token, AFAIK, Spend Management is also not a financial technology software.
White House to cap credit card late payment fees
Ketharaman Swaminathan

Ketharaman Swaminathan

  Feh on such an egregious instance of price control! Late Fees is between Credit Card Issuer and Credit Cardholder. Third parties have no business interfering, that too in a case when the charge is triggered by sheer negligence on the part of one party and not by any duress caused by the other.   I've heard of so many proposals from CFPB accompanied by lofty sermons by Rohit Chopra. Does anyone know how many of them have actually become rules? When Plaid et al have already used free market ethos to generate 80M users for "Open Banking" apps in USA without any regulation, I really don't see what CFPB's proposal on Dodd-Frank s1033 is going to achieve.