What's really behind a credit score? That's exactly what some fintechs are starting to question, and it couldn't come at a better time. In the wake of Equifax's massive data breach, Robin Raskin (@robinr), contributing for HuffPost, reports on alternative ways tech companies are verifying a consumer's credit worthiness. From SoFi's use of AI, to using a more "holistic picture of a credit applicant," today's FICO score could be a thing of the past.
Fintech is disrupting incumbents. An old headline, yes, but one with a caveat for Goldman. John Detrixhe (@johndetrixhe) of Quartz reports. In response to floundering returns, Goldman presented a new plan to its investors—in it, they outlined how its very own tech-backed, consumer lending arm would soon outpace its tried-and-true securities exchange operations in revenue dollars generated.
Why the Next Phase for Fintech Is Collaboration, Not Just Competition — Knowledge@Wharton
If you can't beat 'em, join 'em! That's the abbreviated lesson both fintech startups and the incumbent institutions they're looking to displace are realizing. Or at least that's the takeaway from the recent fintech conference held at the Federal Reserve Bank of Philadelphia. According to speakers, incumbents are kicking the tires of startups as they bring them into the fold. Fintechs, conversely, are reaping the benefits with direct access to much-needed banking infrastructure.
Pay is Still King, but it's Not the Only Factor in Hiring — Accounting Today
What are today's young accountants looking for in their first accounting job? It's not just pay. Sean McCabe of Accounting Today reports on the perks—monetary or otherwise—young grads are most interested in from accounting firms. Unsurprisingly, the number one most reported perk is the money, but in second, and rounding out a close third, comes “opportunities for growth” (19 percent) and “company culture” (13 percent). But perks aren't only important at hiring time. Ongoing communication of offerings—perks—is equally important in maintaining high morale and satisfaction.
"Small businesses are the backbone to the economy" extols every politician. Incumbent banks, it seems, are just now realizing that. Sarah Kocianski (@sarahkocianski) of Business Insider reports on an upcoming study on the dearth of services incumbents have traditionally provided and the ensuing vacuum, which has been filled by products and services from fintech. And only after being shown a path to profitability by those same fintechs are incumbents clamoring for a piece of the pie.