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The transformation of traditional banking: 3 questions with Rohan Amin, Chief Product Officer at Chase
When the pandemic broke out over two years back, banks around the world were left with no choice but to shut down their branches and restrict access to basic in-person services for consumers.
This shift meant that in order to stay relevant, incumbent banks couldn’t continue to function typically anymore – the way consumers used to bank had changed, and so had the required business model to deliver products and services to them.
Rohan Amin, Chief Product Officer at Chase, shares some insights about digital channels in banking, growing fintech competition, and what Chase intends to accomplish in the future.
How the microchip shortage is affecting the payments industry
With the Covid-19 pandemic, the global semiconductor supply chain took a significant hit. Buying microchips became more expensive as cycle times increased. As video game makers, smartphones, and automobile manufacturers evaluated where they stood, the payments industry found itself no less immune.
China, the world’s largest chip manufacturer, went into a series of lockdowns as part of the country’s zero-Covid policy. This resulted in the closure of factories and a drastic decrease in output. China’s lockdowns decreased total chip output by 5.1% in March this year. Additionally, the Russian invasion of Ukraine has made half of the world’s supply of neon, an essential ingredient in manufacturing chips, inaccessible.
The chip shortage has now dragged into its second year, and firms are knee-deep in trouble. While chip-based payment cards face the biggest threat, experts say the only aspect of payments immune to the shortage is physical currency.
As banks look to address the problem, one of the solutions being discussed is extending payment cards’ expiration dates.
Read more (exclusive to Outlier members)
The latest briefing
Banking Briefing: The SMB/fintech fairytale & what makes a successful challenger bank
By now, you’ve probably seen the news about Brex: The Silicon Valley-based fintech, which started out with the goal of funding early-stage startups, has sent a less-than-welcome message to its thousands of SMB customers, telling them to withdraw their funds by mid-August.
It turns out that in light of the funding dry spell, Brex had to make a quick call on who to serve. It opted for its bigger, venture-backed clients, leaving behind SMBs like restaurants and retailers.
These developments beg the question: what does it take to build a successful neobank?
Read more (exclusive to Outlier members)
Just look at the charts
1. Comparing the benefits of different payment methods
Source: FT Partners
2. Who owns the alternative credit market?
Source: David Jimenez Maireles
Brex cuts off SMBs
The fintech announced it will no longer work with any businesses that don’t have some sort of “professional” funding — either venture capital, angel money or funding from an accelerator (TechCrunch)
“The great negotiation”
A fierce and broad talent war in the asset management industry is driving a “great negotiation” as employers fight to retain and attract staff, according to the chief executive of JPMorgan Asset Management (FT)
Christie’s Web3 expert leaves auction house to run CryptoPunks
After acquiring the coveted CryptoPunks NFT project back in March, Yuga Labs is bringing on Noah Davis, a key part of the NFT team at auction house Christie’s, to be the project’s brand lead (CoinDesk)
Revolut releases its app in five more countries
Revolut is launching a streamlined version of its app in Sri Lanka, Chile, Ecuador, Azerbaijan and Oman, allowing customers to transfer money to over 50 countries using more than 30 currencies (Reuters)
Starling’s moment in the sun
One of a breed of new banks that aims to challenge the UK high street banking giants with technology, Starling sucked up business customers during the pandemic, handing out loans backed with state cash (The Guardian)
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