Hi, fintech fam! 💜

It is a busy period. I can sense it all around us — everything is exhilarating and overwhelming simultaneously. There’s something about us entrepreneurs and innovators: we thrive in craziness.

In the world of fintech news, it has also been bustling as usual.

There have been just a few pretty big announcements — from the most recent major merger to a fintech company designated as the NBA's official bank.

So, what are we waiting for? Let's delve into the latest news!

WHY UPGRADE?

There’s a big difference between how the mainstream media covers fintech and how I do. Every week, I will provide you with the latest fintech news (minus the BS), profiles of inspiring women in fintech, and insightful analysis to help you stay ahead of the competition.

For our premium members, I send out updates 3x a week through our new column, "On Performance.” These columns will provide tactical advice to improve your entrepreneur and business leader performance.

Plus, premium members support female-led journalism and keep this work going. Because of your support, Fintech Is Femme is more than just a newsletter; it's a media empire and community for women to connect, learn, and support one another.

#TRENDING

What’s Up In Fintech

Every Thursday, I share news stories and trending pieces I follow. Think of it as a way to quickly find the most important news in the fintech world.

#1 Capital One's $35 Billion Gamble on Discover

Consumer advocates like Congresswoman Maxine Waters are not extending a warm welcome to Capital One Financial's planned $35.5 billion acquisition of Discover Financial.

Having evolved into a credit card giant since its IPO in 1994, Capital One announced Monday that it is strategically eyeing its rival card company, Discover, which is likely to become a dominant force in the U.S. credit card market.

The potential merger of Capital One and Discover, ranking among the top four and five players in the market, would create an industry giant with approximately $250 billion in card balances, commanding a significant 22% market share, as reported by TD Cowen analysts.

Why It Matters

This strategic move is not merely a financial chess game; it's a calculated maneuver to navigate the uncertain future of global payments.

In a landscape where traditional banks, fintechs, and tech giants are vying for a piece of the trillion-dollar market, Capital One aims to fortify its position amid the rapid surge in e-commerce and digital payments.

The acquisition also signals Capital One's strong belief in the continued rise of credit card transactions. The last quarter of 2023 saw Americans collectively amass a staggering $1.13 trillion on their credit cards, inevitably leading to higher interest rates, currently hovering around 21.5%, the highest since 1994, according to the Federal Reserve.

However, figures like Congresswoman Waters strongly oppose this move, viewing it as another attempt by megabanks to exert economic power and shape the financial system to their advantage rather than serving the broader interests of consumers, small businesses, and communities.

She’s not wrong.

Plus, consumer groups are gearing up to voice their concerns, pushing for a deal that prioritizes the interests of both consumers and shareholders.

In an industry where 4,000 banks offer credit cards but the top 10, including Capital One and Discover, control over 80% of loans, this concentration raises questions about how the evolution of credit cards could impact consumers, potentially digging a deeper hole in their wallets.

Beyond the financial metrics, the intrigue lies in how this acquisition could reshape the payments landscape.

Capital One gains access to Discover's payment processing network, a revenue generator, albeit not on the scale of Visa or Mastercard.

This strategic move positions Capital One to capitalize on transaction fees, potentially altering the competitive dynamics in the market.

At this stage, it is uncertain how the merger will unfold. However, I know it serves as a reminder of the importance of educating users in financial services.

#2 SoFi: From Fintech Pioneer to Official Bank of the NBA

SoFi has stepped onto the court as the official banking partner of the National Basketball Association (NBA). This announcement marks a significant milestone for the fintech giant and our industry in general, intertwining finance and culture in a major way.

SoFi is not merely putting its name on jerseys; it's taking financial literacy and community impact to a new level.

Teaming up with Boston Celtics' Jayson Tatum, SoFi is committing $1 million to promote financial literacy through the SoFi Generational Wealth Fund.

In collaboration with the Jayson Tatum Foundation, the Fund extends Tatum's S.M.A.R.T. Project, aiding single parents in navigating parenthood, education, and financial wellness.

The focus extends beyond the basketball court, aiming to empower individuals and communities with financial resources, fostering financial literacy, and expanding homeownership opportunities.

Why It Matters

SoFi's journey to becoming the official bank of the NBA has roots dating back to 2011.

Here’s a bit of the company’s story.

SoFi started as an idea to revolutionize financing for higher education. SoFi's founders and fellow Stanford business school alumni embarked on a mission to connect students with alumni, creating a peer-to-peer model for student loans and refinancing.

It’s giving the Facebook of fintech.

Starting with a modest pilot at Stanford Business School, SoFi quickly gained traction.

The company raised $2 million from Stanford alumni, enabling 100 graduate business students to borrow roughly $20,000 each.

The success propelled SoFi to expand its model to prestigious universities nationwide, including Harvard, M.I.T., Northwestern, and the University of Pennsylvania.

Despite evolving from its original peer-to-peer model, SoFi retained two crucial aspects in its DNA.

Firstly, a focus on HENRYs (High Earners, Not Rich Yet), differentiating itself by serving a profitable customer segment.

Secondly, an early foray into unsecured lending, providing a foundation for profitable consumer lending.

Today, SoFi offers a comprehensive suite of products, ranging from student loan refinancing to investing, credit cards, and insurance.

By embracing this holistic approach, SoFi aims to reward customers for improving their financial health, a strategy that has proven both impressive and emulatable.

A notable milestone for SoFi was obtaining a bank charter, placing it in a league of its own among U.S. fintech companies.

This move enables SoFi to offer deposit products directly, utilizing customer deposits as a stable and low-cost lending source.

Moreover, SoFi's strategic investments in fintech infrastructure, exemplified by the 2020 acquisition of Galileo, position the company as a major player in Banking as a Service (BaaS) and embedded finance markets.

As SoFi solidifies its role as the official bank of the NBA, it not only reshapes the fintech landscape but also demonstrates the transformative power of fintech in shaping culture and community impact.

The journey from student loans to NBA partnerships showcases SoFi's evolution and commitment to financial empowerment.

The question now is: what's the next game-changing move on SoFi's playbook?

#3 Generative AI in Fintech Market to Reach $20M

According to recent data from DataHorizzon, the adoption of generative AI in the fintech market is projected to reach nearly $20 million by 2032.

While it may not be a massive market, it certainly warrants our attention.

The conversation around generative AI shows no signs of fading away. We are still in the nascent stages, and the potential for its application in fintech is just beginning to unfold.

Why It Matters

Generative AI isn't just marketing jargon; it's the secret sauce infusing innovation and automation into finance. It drives change in how banks, fintech, and financial services operate.

Generative AI's playground extends beyond fintech; it's making waves in healthcare, pharmaceuticals, product development, research—the list goes on.

How? By diving into historical data, crafting models, churning out fresh data, and serving solutions. It's a tool that makes things happen with minimal inputs, turning industries on their heads.

And the fintech crowd isn't staying on the sidelines. Generative AI is their new best friend, sparking a revolution in innovation.

Every day, banks churn out a tidal wave of data, and if harnessed effectively, it's a game-changer. That's why financial institutions are jumping on the Generative AI bandwagon, decoding customer preferences and dishing out personalized services.

The U.S. is leading the charge in the generative AI in the fintech market, with companies and banks tossing their hats into the ring.

They're deploying intelligent voice assistants and document verification steps, not as mere tools but as unsung heroes fighting financial fraud.

Meet the heavyweights making it happen: Alphabet Inc., Microsoft Corporation, IBM Corporation, Salesforce Inc., Adobe Inc., Trovata AI, Mostly AI Inc., OpenAI, Synthesis AI, Genie AI, and more.

_{MARK YOUR CALENDARS}

Join us every Thursday to stay updated on the top fintech events each week! These events are a great way to network, learn, and connect with our fintech community. Let's fill our calendars with these awesome events - I would love to see you there! If you have an event to share, please inform me!

_{SUNDAY 3/3}

[LAS VEGAS] Fintech MeetUp: Catch me speak on a panel about how fintech is revolutionizing financial health (one of my favorite topics) to kick off Fintech Meetup. Powerhouse speakers like Kathleen Peters, Chief Innovation Officer of Experian, and Liza Landsman, CEO of Stash, will join me.

_{TUESDAY 3/5}

[LAS VEGAS] Women in Fintech Breakfast: Heading to Fintech MeetUp? ​Kick off the second day of the conference with a gathering of female FinTech founders, investors, and executives as we take a unique “behind the scenes” look at the ever-changing 2024 landscape. Hosted alongside Kesi Johnson of Parity at Storm2 and Vanessa DiFrances of SVB. RSVP here!

_{MONDAY 4/8}

[NEW YORK] Fintech Is Femme Leadership Summit: Join us for the fintech event designed for our community. Our big show is a half-day event to kick off New York Fintech Week with a bang! I am going all out for this one, featuring esteemed speakers and premium vibes. We are combining value, community, and culture into a single experience. Are you excited to get your hands on a Fintech Is Femme concert tee? Ready for a dance party? Secure your ticket now!

_{WEDNESDAY 4/10}

[NYC] Empire Startups FinTech Conference: When it comes to putting on a show in New York City that brings the premium members of our fintech community together, Empire Startups is unmatched! Be sure to hang out with us at the event on Wednesday. I’ll be speaking on a panel with Titans of New York Fintech. I cannot wait!

_FINTUNES

🎵 Usher, Alicia Keys - My Boo

Have I listened to Usher a bit more since the Super Bowl performance? Of course. I’m still thinking about how this was one of the best parts of the entire show. And the rollerblades, of course.

That’s all for now! Stay safe, everyone. Hug your loved ones. See you Sunday!

Love,

Nicole

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