[image_with_animation image_url=”17704″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”] We’ve had several recent conversations with DCA members about reducing friction. But do we always want to reduce friction? Low-friction commerce is good. We see products we like, we transact with a few clicks, we don’t have to fill out forms – it flows. But would no-friction commerce be even...

If Points become more fungible, do they still drive consumer engagement? This week I was talking with a new DCA member – Points4Purpose – about setting consumer rewards “free.”  Old-school loyalty programs often issued rewards in a currency akin to Chuck E. Cheese tokens – in a totally closed system.  I mean Mr. Cheese no disrespect: those tokens have been...

Twelve DCA members white-boarded the business opportunities created by open banking. On Wednesday, a dozen DCA member executives worked together to brainstorm and document the business opportunities that will be created by the full implementation of open finance principles.  Like our November Strategy Sprint on tech disruption, the session was an opportunity to look into the near-future and assess likely...

AI Helps FinTech Firms Reach More Borrowers  Fintech lenders including Pentadata Inc., OppFi Inc. and LoanSnap are helping traditionally underserved borrowers get loans. These companies feed a wider range of data and use AI to determine credit eligibility, giving more people access to the credit market. It has been crucial for these fintechs to be able to have access to...

Truist Buys Gamified FinTech Long Game The seventh-largest bank in the nation, Truist, purchased a mobile app—Long Game—that rewards users for saving money. Launched in 2015, Long Game had 12 bank and credit union customers prior to the acquisition. The average user saves $60 per month. DCA Insight: The investment in gamification is intended to increase Truist’s market share. Interactive...

Russia’s Financial System: Visa & Mastercard Sanctions Western economic sanctions disrupted Russia’s financial system, with one exception, the WSJ reported. Russian consumers continued to use their Mastercard and Visa cards, even though these two organizations exited the country as the war began. Why? Payments made by these cards issued in Russia aren’t processed via U.S. networks, but rather through a...

Plaid Founders Buy Bank The co-founders of data network Plaid have purchased Northern California National Bank. The newly acquired one-location FI has been renamed Column and it will manage Plaid’s regulated tasks including holding customers’ deposits and issuing debit cards. DCA Insight: Name-brand banks don’t generally perform these tasks, so the work is usually done by community banks, many of...

Banks Consider Zelle as Card Alternative A group of banks that own money transfer service Zelle are contemplating promoting the payment option, which competes with card networks Visa and Mastercard. The move would open growth opportunities for Zelle, which doubled its number of transactions in 2021 driven by the pandemic. DCA Insight: Collectively, banks and card networks earn billions each...

Banks Make It Easier To Get A Credit Card  Almost 30 million credit cards were issued to people with credit scores of 660 and below in 2021, a signal that the US economy (and Americans’ finances) is strong, according to DCA member and credit reporting firm TransUnion. About 33% of banks reported easing credit standards during the fourth quarter of...

Entrust Acquires Card Issuance Firm Antelop Secure payments and data protection company Entrust is acquiring French fintech company Antelop Solutions, according to PYMNTS.com. The coming together of the two organizations will simplify the process of banks adding digital credit and debit cards to their mobile wallets. DCA Insight: The pandemic continues to drive growth in demand for digital payments. Making digital card...

Mastercard’s Finicity Signs Open Banking Data Agreement With Pentadata In less than one week, DCA member company Pentadata, Inc. disclosed a second major open banking data agreement with fellow DCA member company Mastercard and its Finicity division. The partnership enables developers to create platforms that both respect consumers’ privacy and optimize program benefits—giving consumers control. DCA Insight: This announcement and...

Data JV including Chase, Bank of America, Citi, Wells Fargo signs Pentadata Open Banking API Agreement The industry’s first fully secured API-based financial data platform,  DCA member Pentadata, Inc., today announced that it has signed an agreement to use the data access network comprised of 12 of the largest banks in North America. This leading network offers API-based, permissioned access...