Many government employees are turning to alternative lenders to bridge the gap between paychecks; the average pay at the biggest U.S. banks rose by just 3% last year, well below the CEO rate.
The large core banking software vendors are already criticized as large and slow-moving. Consolidations like these are only likely to make them more so.
The numbers behind Fiserv's deal to acquire First Data are huge, particularly considering each company's existing tonnage still makes consolidation the best play when faced with nimble fintechs and mobile startups.
Its mobile banking app comes with bank accounts, merchant accounts, and instant credit on invoices. Behind it is a network of community banks that will gather the deposits the app brings in.
The senator wants Treasury to enhance fraud protection in the Direct Express prepaid program — now a partnership with Comerica Bank — when its contract is rebid in 2020.
The coming year will bring a wave of data-sharing deals between banks and fintechs, increased bank use of automated advice, marked changes to financial jobs as a result of automation, and much more.
