Fintech Takes

Hello, and welcome back to Source of Truth, the new podcast miniseries from Fintech Takes, sponsored by our friends at SOLO. This series is about information asymmetry (the enemy of financial services; especially lending).  In Episode, we tackled truth vs. trust. And in Episode 2, we explore history vs. overconfidence, which goes something like this: In 1995, Fannie Mae and Freddie Mac effectively mandated the use of FICO scores in mortgage underwriting. Almost overnight, credit scores went from a niche tool in bankers’ back rooms to the market’s law of the land. Joining me to unpack that history and its consequences is Martin Kleinbard, Founder of Granual Fintech (and author of the great research report How Cashflow Data Can Diffuse the Credit Score Time Bomb, which I was proud to publish at Fintech Takes).  Highlights include: * What began as an additive tool for underwriting quickly became a substitute for judgment (lenders skipped the W-2s and leaned entirely on the number) * The three pillars of credit: Willingness to pay (FICO’s wheelhouse), ability to pay (cash flow, income, assets), and product risk (loan terms that can themselves trigger default) – the financial crisis showed what happens when you ignore the latter two! * Second-order risk today. From BNPL quirks to payment hierarchy surprises (why personal loans sometimes get paid before mortgages), context still matters more than any one score This episode explores what happens when we reduce everything to a single number: lenders miss nuance, consumers get misread. A credit score can predict repayment, but only context explains it. And in the end, context is king. Subscribe now and catch the rest of Source of Truth … we’re just getting started! This miniseries is brought to you by SOLO. SOLO resolves and connects customer data across silos — so teams stop rekeying the same customer info for the hundredth time and finally move forward. Break the cycle at SOLO.one [https://solo.one/pull/resolve?utm_campaign=15934874-Fintech%20Takes&utm_source=podcast&utm_medium=episode-2] - That’s SOLO dot o-n-e [https://solo.one/pull/resolve?utm_campaign=15934874-Fintech%20Takes&utm_source=podcast&utm_medium=episode-2]. Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson] Follow Martin: LinkedIn: https://www.linkedin.com/in/sytaylor/https://www.linkedin.com/in/martin-kleinbard-6122aa1a/ [https://www.linkedin.com/in/martin-kleinbard-6122aa1a/] We also chat about his new piece in Open Banker (on AI for consumer bankers), which you can read here: https://openbanker.beehiiv.com/p/aiforconsumerbankers [https://openbanker.beehiiv.com/p/aiforconsumerbankers] Learn more about SOLO here [https://solo.one/pull/resolve?utm_campaign=15934874-Fintech%20Takes&utm_source=podcast&utm_medium=episode-2].

Hello, and welcome to Source of Truth, a new podcast miniseries from Fintech Takes, sponsored by our friends at SOLO. This series is about information asymmetry (which is *the* enemy in financial services — especially in lending).  Information asymmetry (the gap between what the customer knows and what the financial service provider knows) explains most inefficiencies. It’s the reason why qualified applicants get declined for loans or approved for loans at rates much higher than they should have to pay. And it’s the reason why borrowers and human underwriters spend a mind-numbing number of hours locating, aggregating, and verifying information. We’ve added APIs, alternative data, and automation. Yet, the core process of collecting and trusting information still looks much like it did decades ago. Why is that? And what can be done to reshape that process in a more fundamental way? These are the questions that Source of Truth will explore. In Episode 1, I’m joined by Georgina Merhom, Founder & CEO of SOLO.  Georgina, a data scientist by training, unpacks how lending data is collected, verified, and (too rarely) reused. Highlights include: * What the old-school branch lending process got right that digital still misses * Why banks still burn through $30B each year on manual collection despite APIs * The difference between standardized inputs (useful) and standardized outputs (misleading) This opening episode tees up the larger theme of the series: building systems that don’t just capture truth but create trust.  Because when information can be reused and verified, lenders and borrowers stop starting from zero. Subscribe now and catch the rest of Source of Truth. This miniseries is brought to you by SOLO. SOLO resolves and connects customer data across silos — so teams stop rekeying the same customer info for the hundredth time and finally move forward. Break the cycle at SOLO.one [https://solo.one/pull/resolve?utm_campaign=15934874-Fintech%20Takes&utm_source=podcast&utm_medium=episode-1] - That’s SOLO dot o-n-e [https://solo.one/pull/resolve?utm_campaign=15934874-Fintech%20Takes&utm_source=podcast&utm_medium=episode-1]. Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson] Follow Georgina: LinkedIn: https://www.linkedin.com/in/sytaylor/https://www.linkedin.com/in/georginamerhom/ [https://www.linkedin.com/in/georginamerhom/] Learn more about SOLO here [https://solo.one/pull/resolve?utm_campaign=15934874-Fintech%20Takes&utm_source=podcast&utm_medium=episode-1].

Bank Nerd Corner is back with Kiah Haslett returning … not just as co-host, but as an official member of Fintech Takes!  That’s right, big news: Bank Nerd Corner will soon be its own podcast feed, with Kiah hosting (and Alex dropping in monthly as a guest).  Kiah’s podcast launches this September alongside her new weekly newsletter, Fintech Takes Banking! If you’re listening to this episode, you basically asked for it (sign up at fintechtakes.com/banking/newsletter-subscription [http://fintechtakes.com/banking/newsletter-subscription]). Now, onto Bank Nerding!  First up,  the topic that's going to end up on my tombstone when I die: open banking.  We dig into the CFPB’s sudden flip on open banking. JPMorgan Chase tried charging for data access, the Bureau hit pause on litigation, and now an accelerated rulemaking process is underway. Will banks get the green light to price data, or did Chase just overplay its hand? Is this the beginning of monopoly pricing in disguise? Next, Kiah schools Alex (and the rest of us) on why crypto firms are suddenly obsessed with national trust charters (what they are, why they matter, and how they could function as narrow banks in disguise). Stablecoin reserves, custody rules, and OCC oversight are all on the table. And finally, the Palmer Luckey-backed digital bank Erebor enters the chat, promising to be the new Silicon Valley Bank for startups, crypto, and defense companies. Their pitch: political connections will fast-track their national bank charter with the OCC. But can political connections really expedite a de novo charter without wrecking regulators’ credibility? Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos].   Follow Kiah: LinkedIn: https://www.linkedin.com/in/khaslett/ [https://www.linkedin.com/in/khaslett/] Twitter: https://twitter.com/khaslett [https://twitter.com/khaslett]   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson]

Welcome back to the Fintech Takes podcast. I’m Alex Johnson, joined by Dan Murphy — Founder of Sunset Park Advisors and former CFPB official who helped craft the agency’s open banking rule (finalized last October). Our plan is simple: for listeners less steeped in the regulatory process, we’ll walk through how the rule took shape, assess where things stand today, and focus on what comes next (and what should come next, realistic or not.) Granted, “today” remains a moving target. Just 20 minutes before we hit record, breaking news dropped that changed the open banking conversation yet again. Highlights include: * The unusual bipartisan and cross-industry consensus (banks and fintechs alike) that pushed the rule across the finish line (and why that consensus collapsed after October 2024) * Why JPMorgan’s aggressive API fee move  rolled out while the no-fee rule was technically still in effect) may have backfired by uniting fintechs, crypto firms, merchants, and even regulators against it * The hardest unresolved questions: whether banks can charge for data access, how liability is allocated when things go wrong, how far the rule should extend beyond checking and credit cards, and what counts as legitimate secondary data use. If you care about the future of data portability, the balance of power between banks and fintechs, or just want a front-row seat to the regulatory drama reshaping U.S. finance in real time, this is the episode you don’t want to miss. Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Follow Dan Murphy: LinkedIn: https://www.linkedin.com/in/danieljmurphy01/ [https://www.linkedin.com/in/danieljmurphy01/]   Follow Alex Johnson:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] X: https://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson]

In the finale of Model Citizens: AI Compliance for Banks and Fintech Lenders (a six-part miniseries from the Fintech Takes podcast in partnership with FairPlay), we confront the biggest questions yet:  What does financial regulation look like in the age of AI (when the very concept of governance is under strain)? And in a world where algorithms move faster than institutions can react, how do we protect consumers, ensure fairness, and keep power in check? If you’re looking for quick answers or one-dimensional takes, this isn’t that episode.  But if you’re looking for a candid, wide-ranging exploration of the forces reshaping financial services, law, and society, you’ve come to the right place. With Kareem Saleh (Founder & CEO of FairPlay) as cohost, we talk deepfakes, regulatory dysfunction, and more with two experts in the trenches: PR Stark (Director of Machine Learning Research at FinRegLab) and Tom Brown (Senior Counsel at Paul Hastings). Highlights include: * Why deepfakes could trigger the next bank run — and why most banks aren’t ready * The return of “model risk management” as the most underrated regulatory export * How agentic AI could upend overdraft revenue, shopping for a mortgage, and the regulatory calendar Don’t miss this closing chapter of Model Citizens; a conversation as complex, candid, and full of possibility as the future itself. This miniseries is brought to you by FairPlay. FairPlay is an AI enablement company for financial services. They help companies build, test, optimize, validate and govern AI models. Learn more at Fairplay.ai [https://fairplay.ai/fintech-takes?utm_source=podcast&utm_medium=traffic&utm_campaign=fintech+takes] Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/ [https://workweek.com/brand/fintech-takes/] And for more exclusive insider content, don’t forget to check out my YouTube page [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos]. Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos [https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos] LinkedIn: https://www.linkedin.com/in/alexhjohnson [https://www.linkedin.com/in/alexhjohnson] Twitter: https://www.twitter.com/AlexH_Johnson [https://www.twitter.com/AlexH_Johnson] Follow Kareem: https://www.linkedin.com/in/kareemsaleh/ [https://www.linkedin.com/in/kareemsaleh/] Follow PR: https://www.linkedin.com/in/p-r-stark-1a9786142/ [https://www.linkedin.com/in/p-r-stark-1a9786142/] Follow Tom: https://www.linkedin.com/in/tpbrown5/ [https://www.linkedin.com/in/tpbrown5/] Learn more about FairPlay here [https://fairplay.ai/fintech-takes?utm_source=podcast&utm_medium=traffic&utm_campaign=fintech+takes].