Fintech has a fraud problem, and the onus is on you to figure it out
Hiya! Dan DeFrancesco in NYC.
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Today, we've got stories on a bootcamp for aspiring buy-side analysts, JPMorgan's Jamie Dimon is reportedly getting deposed, and one food reviewer ate every burger on the Wendy's menu.
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1. Fintech's fraud misfortune.
Move fast and break things.
It's a phrase you've probably heard if you've spent time with anyone in the startup industry.
While its origins date back to the early days of Facebook, it wasn't long before the phrase became a rallying cry to every two-bit tech entrepreneur with an idea.
And while that type of philosophy might be suitable for some startups, it's not the best strategy if you're dealing with people's money.
Which brings us to a story by Insider's Bianca Chan and Paige Hagy about concerns over the prevalence of fraud within consumer-facing fintechs in recent years.
It's an issue that was raised in a recent report from a short-seller targeting Block's Cash App. Regardless of whether you agree with the report — Block vehemently denies it, for the record — there is a larger point to be made.
Fintechs have undeniably led to improvements in how people save, invest, and transfer money. However, one of the industry's great strengths — the speed at which it can offer users these services — is its greatest weakness.
Streamlining onboarding processes that previously bogged customers down is also opening fintechs up to letting criminals into their ecosystems.
For some, that's the cost of doing business, to speak. As the old saying goes, "you have to break a couple of eggs to make an omelet." The risk of playing in a world where one might be more susceptible to fraudsters is worth it if it means their finances can be a bit more streamlined.
Others, though, argue that's not acceptable. And when one considers how some of these startups cater to the un- and under-banked, the problem becomes all the more serious.
Whatever the case, understand the onus will be on you, the user. At a time when many fintechs are looking to reach profitability, or, at the very least, slow their cash burn, few will consider changing how quickly they onboard new users.
After all, you know what they say.
Move fast and break things.
Click here to read more about fintech's fraud problem.
In other news:
2. Here come the sharks. The collapse, or near collapse, of some US banks means prime investing opportunities for some of Wall Street, Insider's Linette Lopez writes. Here's who stands to come out on top from all this chaos.
3. Poor Ralph Hamers. UBS announced it is replacing Hamers as CEO and bringing back Sergio Ermotti to lead the takeover of Credit Suisse, less than two weeks after Hamers oversaw the rescue deal. Read more.
4. And poor Michael Klein. The Wall Street veteran was tapped to lead Credit Suisse's spinoff of its investment bank, and potentially make a boatload of money doing it. But with UBS' takeover of Credit Suisse, those plans are basically donezo, per Bloomberg.
5. Fintech pitch decks galore! First up, we have the pitch deck for New York-based Spiral, a startup that helps banks offer charitable giving services. Here's the deck it used to raise $28 million. We've also got the deck StellarFi, a fintech that helps users improve their credit score, used to raise $15 million. For more than 50 different decks used by fintechs to raise fresh funds, check out our library.
6. Everything you need to know about the CFTC lawsuit against Binance. The crypto exchange, along with its CEO and former chief compliance officer, was sued by the US regulator for violating domestic financial laws. Here are seven of the biggest allegations levied against Binance in the 74-page complaint.
7. Drop and give me 15 financial models! Fundamental Edge is a training program for young and aspiring buy-side analysts to get prepared for life in the hedge-fund industry, Institutional Investor reports. Read more about what you can expect at the four-week analyst bootcamp.
8. Jamie Dimon is reportedly getting deposed. The CEO of JPMorgan Chase will be questioned about the bank's involvement with convicted sex offender Jeffrey Epstein, the Financial Times reports. More here.
9. New Rolexes just dropped. The 2023 collection of the luxury watchmaker includes a platinum 60th anniversary Daytona, along with eight other designs I'll surely never be able to afford. Take a peek at them all here.
10. Everyone's favorite food reviewer is back. After conquering Taco Bell, Lucien Formichella is back to test every burger on the Wendy's menu. Here's how the burgers stack up. (As a dad, I'm allowed to make that joke.)
Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.