And here’s why banks and Silicon Valley fintechs clash over consumers’ data.
Goldman Sachs Group partnered Apple for a credit card deal to gain traction in the mass market, particularly iPhone users.
According to Goldman chief executive David Solomon, the consumer business is a critical part of the bank’s strategy to grow revenues and cut costs, as revenue shrinks in traditional areas of strength for Goldman like bond trading.
Citigroup is developing a consumer-payments platform by offering credit cards and e-wallets to expand product portfolios within its B2B payment offerings.
Citi is working with Mastercard to facilitate the service as well as other payment companies to incorporate up to 140 alternative payment methods into the service.
Tensions between banks and Silicon Valley startups are head-to-head to battle over valuable data in Americans’ bank accounts. Major banks including JPMorgan and Capital One were the front runners in the fight to control how non-bank players use sensitive customer information, citing consumer protection as their highest priority.
There are almost 2,300 fintech apps in the US, offering help with budgeting, investing and payments, according to market research firm Venture Scanner. Many rely on access to users’ bank records. Getting locked out can kill their business.
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