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Sorry to toot my own horn but, after observing scam behaviors and reimbursement rules in various markets, I've come to the conclusion that my Three Strike Rule To Eliminate Cybercrime is the best way to counter APP Scam. 

Actually, there's NO confusion over which Synapse bank partners hold which funds belonging to these customers - they hold whatever funds Synapse moved into them minus whatever funds Synapse moved out of them.  The real confusion is over what Synapse did. Synapse has already said it doesn't have the money or the employees required to do a thorough reconciliation.

I'm guessing consumers are suing Evolve and other sponsor banks because they know they won't get anything by going after the bankrupt Synapse. But, unless they have something on bank stationery acknowledging their balance claims, the courts might dismiss their class action lawsuit for being frivolous. 

I don't get why consumers are not suing the fintechs (e.g. YOTTA) whom they handed over their money to in the first place. 

Nice post.

Being in Marketing, I'm fully familiar with the term AI-SDR - Artificial Intelligence-based Sales Development Representative.

But "Artificial Intelligence and Software-Defined Radio" is a first for me! Major TIL Moment!!

I find it hard to accept the speaker's claim “When algorithm trading ... came in, people thought it would be the end of the human trader - and it wasn’t." Data says it was. While AlgoTrading did not literally end human trader, it did replace 50% of them (Source: ChatGPT).   

Brilliant post!

I've read several articles about Embedded Finance - and written one, too - and I've always been left unconvinced about specific use cases for the technology. 

Yours is the first article I recall reading that provides very sensible use cases for Embedded Finance. That you've been able to do so despite focusing on only one target market segment for the technology - SaaS - is all the more admirable.

Kudos!!

OTOH, ChatGPT gives answers in realtime, so 24 hour response time is bad.

OTOrH, banks are not used to giving answers in less than 5 working days, so 24 hour response time is good. 

In a typical APP Scam, the scam happens first and outside the bank's systems and the payment happens later in the bank's systems. Not sure how AI - or anything else a bank can do - can act as a "first layer of defence" and block "fraudulent attempts before they reach users".

TY Anna Antimiichuk!

Are these challenger banks neobanks working off of a sponsor bank or do they have banking license of their own? If latter, not sure if any "honeymoon period" was warranted - or even legal. End of the day, a hospital is liable for malpractice from Day One of its operations. And I don't recall traffic police cutting me any slack for breaking traffic rules from the very next day after I got my Drivers License.

One regulator will cite fraud and shill data sharing. Another regulator will cite GDPR or some other data privacy regulation and block data sharing. Banks will cite APP Fraud Compensation rules to delay payments. Hope the regulator who mandated faster payments remembers that it did so to speed up payments and cut down float.