What are Banking App Trojans?

The digital world’s trojans borrow their name from classic Greek myth. First told by Homer in his epic poem the Odyssey, the myth of the Trojan horse describes how Greek soldiers were able to infiltrate Troy, their rival’s city, during war. 

The Greeks hid in an enormous wooden horse left at the impenetrable city gates as an offering to the goddess Athena. The Trojans brought it inside their city limits thinking this gift was a harmless donation from some unknown benefactor. 

When the Trojans pulled the horse inside, they unwittingly invited their opponents into their home, and they suffered a steep price. The hiding Greeks waited until nightfall to creep out, opening the sturdy gates to let the rest of the Greek army into destroy the city of Troy and win the war. 

These days, the Trojan horse myth has become synonymous with any scenario that convinces a target to invite their rivals into their protected circle. When it comes to the tech world, the Trojan horse represents any malware that tricks you into letting it onto your device to do something nefarious.

Banking app trojans are a specific type of virus that targets mobile banking apps. Just like the Greek myth of old, these digital trojans masquerade as legitimate apps you want on your phone — often totally unrelated to finances, like QR code readers or productivity trackers. 

What do Trojan Apps Do on Your Phone?

Getting onto your phone is only the first step. The second step is gaining permissions so that they can track your device and the personal information you share. 

Many of these apps do this by issuing permission screens that all apps have — even the most legitimate ones. You might allow the trojan full access to your phone by granting permission, thinking nothing unusual about these requests.

SharkBot has been heralded as the new generation of banking trojans that follow this strategy. It deposits itself onto your phone as a file recovery service. Once you install and open it on your phone, it asks for the usual permissions to access videos, photos, and audio on your device. However, it also requests additional permissions that, if granted, allow it to interact with other apps and send payments on Google Play. 

If you unthinkingly grant these permissions, SharkBot has the information it needs to go through your phone, stealing personal information. Things like login credentials and passwords aren’t safe. 

Anatsa, a malware dropper, is another banking trojan that goes about stealing your information in a different way. Rather than asking for permissions, it leverages updates to do its bidding. After you install the dummy app, the developers send out an update that alters its AccessibilityService control. This bait-and-switch trick allows the developers to take over the device and steal information. 

Navigating the Evolving Threat Landscape

Recently, there have been more and more of these trojans popping up. They come with lots of fancy features that help them stay hidden and defraud people.

A study done by Zimperium, a mobile security platform, found that ten new banking trojans debuted in 2023. These trojans targeted 985 banking and finance apps in 61 different countries.

Trojan banking apps have the power to do lots of different things, like automatically moving money around or even letting hackers see what’s happening on your screen.

What’s even scarier is that hackers are getting smarter about tricking people into downloading these trojans. They’re using tactics like pretending to be customer support agents or sending out fake messages to trick people into installing the trojans without knowing it.

Protecting Yourself

Forewarned is forearmed. Had the Trojans known the Greeks could hide in a horse disguised as a religious offering, they would never have dragged the horse inside their city limits. You too can keep trojans off your phone now that you know that malware can scam its way on your device. 

Follow these tips to manage accounts, pay bills, and borrow money online safely. 

Stick to Official App Stores

Avoid downloading apps from unofficial sources or third-party app stores, as these are more likely to harbor malware. Stick to reputable platforms like Google Play, and carefully review user reviews and developer credentials before installing any app. 

Exercise Caution with Permissions

During the installation process, pay close attention to the permissions requested by an app. Be wary of applications that ask for unnecessary access to sensitive features, such as device storage or accessibility services. If in doubt, err on the side of caution and refrain from granting excessive permissions.

Stay Updated

Keep your device’s operating system and applications up to date with the latest security patches and software updates. These updates often contain fixes for known vulnerabilities that could be exploited by cybercriminals.

Opt for Web-Based Services

You may sidestep the whole issue of trojan apps by switching to digital banking. Reputable web-based services like Fora Credit offer the same convenience with online, browser-based options and none of the app-based security risks. You can even use your phone to access these sites. 

Enable Security Solutions

Consider using reputable mobile security solutions to detect and block threats in real-time. Antivirus software or anti-malware apps can provide an additional layer of defense against trojans and other forms of malware.

Practice Vigilance

Remain vigilant while browsing the web or using mobile apps, especially when entering sensitive information like passwords or financial details. Avoid clicking on suspicious links or downloading attachments from unknown sources, as this could lead to the inadvertent installation of malware.

Follow this advice even if your financial institution doesn’t have an app. 

By staying informed and adopting proactive security measures, you can significantly reduce the risk of falling victim to banking app trojans and other cyber threats. Remember, when it comes to safeguarding your digital assets, vigilance is key.

Banking on Mobile with Caution

Banking app trojans loom large, posing as formidable challenges to people like you who just want to manage their finances with their phones. You can get out from under their shadow by following the tips you learned here today. 

Armed with knowledge, vigilance, and proactive security measures, you can spot and avoid trojans before they sneak onto your phone. 

The current economic backdrop, characterized by rising interest rates and increased delinquencies, particularly in credit cards and auto loans, has prompted banks to adopt more conservative lending practices. Chen highlighted that these conditions have introduced significant headwinds for NerdWallet, particularly in its lending business. “Natural inclination to be a little more conservative there,” Chen noted, pointing to banks’ cautious stance amid economic uncertainties.

However, it’s not all bleak for NerdWallet. The company has been proactive, investing through economic cycles to bolster its offerings and maintain growth. This strategy reflects a long-term vision that aims to weather the stormy conditions by enhancing product offerings and adapting to market demands.

One significant area of growth has been in the insurance sector. With insurance premiums rising due to inflation and increased costs associated with vehicle and home repairs, consumers actively seek ways to manage expenses. NerdWallet has seen a surge in traffic from consumers comparison shopping for better insurance rates. “People are getting notices of insurance premiums going up a ton. It’s pretty widespread,” Chen explained. The company reported a record quarter for its insurance segment, which was up 5% year over year.

Chen also touched on the broader financial services landscape, noting the company’s efforts to align itself with changing consumer and lender behaviors. With tightening underwriting standards and a cautious approach from banks following recent regional banking crises, NerdWallet focuses on aiding consumers and small businesses in navigating these complex conditions.

“We think that’s normal cyclical dynamics and it will play out over time,” Chen said, optimistic about future easing in the market. He cited indicators like consumer delinquencies, which are believed to have peaked, suggesting a potential loosening of credit conditions as the year progresses.

NerdWallet’s strategic pivot during these challenging times highlights the complexities of operating in the financial services industry under a tightening lending regime. As the market continues to evolve, NerdWallet’s ability to adapt and innovate will be crucial in maintaining its edge and supporting consumers through their financial journeys.

Following Reddit recently going public, many experts believe the market may finally be ready to for more IPOs. Click Capital Markets provides “an API designed to give U.S. and foreign brokerage firms and financial advisors, access to a wide variety of U.S. registered New Issue capital markets products.”

With the rebranding, Click Capital Markets has expanded its investment products, with a view to continuing its goal of democratizing access to IPOs.

“We are very excited about rebranding to Click Capital Markets as it demonstrates our extensive transformation into a more diversified capital markets provider to include our traditional IPO business, as well as Unit Investment Trusts (UITs), Closed End Funds (CEFs), Alternative Investments, and Structured Products. This rebranding is also meant to reflect the confidence in our business, our capabilities and our growing team,” said Scott Coyle, President and Founder of Click. “Over the past 5 years we have steadily grown our underwriter and issuer relationships, expanded the number of broker-dealers globally that are connected to our platform via API, giving their retail customers easy access to U.S. capital markets products. We have participated in over 400 different product offerings in the last few years, made significant technology investments to improve our global platform, and established several new capital markets relationships that enable us to expand our product offerings.”

“In the last few years, AI has changed our world,” remarks Worm, setting the stage for a discussion that delves into AI’s profound implications for the banking industry. Focusing on creativity, science, and various facets of human endeavor, Worm underscores AI’s far-reaching impact and poses a critical question: What about our banking?

As we embark on this exploration, Worm identifies five key areas where AI is poised to make groundbreaking impacts on banking:

1. Customer Service Transformation:
“Have you ever had to reach out to your bank because a number doesn’t look right or there’s something wrong with your accounts?” Worm prompts inviting reflection on the common frustrations encountered in traditional customer service interactions. Leveraging AI-powered solutions, banks can revolutionize customer service experiences, offering rapid, personalized resolutions to inquiries and complaints. Worm emphasizes the potential for AI to enhance speed, reliability, and overall customer satisfaction in banking interactions.

2. Personalized Banking Assistance:
Drawing parallels to the futuristic AI assistant Jarvis from the Iron Man movies, Worm paints a picture of a world where every individual can access a personalized banking advisor powered by AI. Banks can offer tailored guidance on financial decisions through generative AI technologies, from loan applications to investment strategies. Worm envisions a future where AI is a trusted companion, empowering users to navigate complex financial landscapes confidently and efficiently.

3. Proactive Fraud Detection:
Fraudulent activities significantly threaten customers and banks, requiring swift detection and mitigation measures. Worm highlights the role of AI in proactively monitoring transactions, identifying suspicious patterns, and preventing fraud before it occurs. By leveraging advanced algorithms, banks can safeguard customer assets and maintain trust in their financial services, thus enhancing security and peace of mind for all stakeholders.

4. Simplified Compliance Management:
Navigating the intricacies of banking regulations can be daunting, necessitating comprehensive compliance management strategies. Worm discusses how AI-driven solutions can streamline regulatory compliance efforts, providing real-time insights and guidance to banks and their clients. Through automated compliance monitoring and reporting, AI enables banks to adapt seamlessly to regulatory changes and uphold industry standards.

5. Promoting Financial Inclusion:
Reflecting on the broader societal impact of AI in banking, Worm emphasizes its potential to democratize access to financial services. Banks can reach underserved communities worldwide by leveraging AI technologies, offering intuitive and accessible banking solutions. Worm envisions a future where AI-driven innovations foster financial inclusion and empowerment, bridging the gap between traditional banking services and marginalized populations.

As Worm concludes his insights into AI’s transformative potential in banking, he underscores the need for collaboration, innovation, and ethical consideration in harnessing AI’s power for the betterment of society. With a shared vision for a future where banking services are more personalized, secure, and inclusive, Worm invites us to embrace the possibilities that lie ahead in shaping the future of finance.

In the dynamic intersection of AI and banking, Worm’s perspectives serve as a testament to the transformative potential of technology in reshaping traditional industries and driving positive change on a global scale. As we navigate the evolving landscape of banking in the digital age, Worm’s insights provide invaluable guidance for embracing the opportunities and challenges that lie ahead.

“For too long, the banking industry has been inward-looking, focusing on its interests rather than meeting the needs of small and medium-sized enterprises (SMEs),” says Martin McCann, Co-Founder of Trade Ledger. “There’s a significant gap between the demand for working capital among growth companies and the supply provided by traditional banks. We’re committed to bridging this divide.”

With a keen understanding of businesses’ challenges in accessing finance, Trade Ledger aims to revolutionize commercial lending. “Our platform is designed to enhance the efficiency and effectiveness of lending operations,” explains Alan Beattie, President APAC at Trade Ledger. “By leveraging modern technology, we empower banks to serve their clients better while optimizing their capital.”

Capital Copilot, a groundbreaking commercial banking AI powered by Microsoft technologies, is at the core of Trade Ledger’s offerings. This innovative platform gives banks a comprehensive solution to digitize and modernize their lending processes, driving efficiency and enabling better risk management.

“Our partnership with Microsoft is integral to our mission of transforming commercial banking,” says McCann. “Through Azure Open AI services, Capital Copilot offers banks unparalleled insights into their customers’ needs and risk profiles, enabling them to make more informed lending decisions.”

The collaboration between Trade Ledger and Microsoft represents a significant step forward in the evolution of commercial banking. By harnessing the power of technology, they are driving positive change and paving the way for a more efficient and inclusive financial ecosystem.

“With Microsoft and the generative AI, we have the opportunity to revolutionize commercial banking on a global scale,” adds Beattie. “Together, we’re empowering banks to serve their clients better and fuel economic growth.”

As Trade Ledger continues to innovate and expand its reach, fueled by its partnership with Microsoft, the future of commercial banking looks brighter than ever. With their combined expertise and vision, they are poised to shape the future of finance and drive meaningful change in the industry.

“Last year, we observed a significant shift among investors, moving away from high-yield checking accounts and fixed income towards equity and AI,” remarked Miller. “Survey data indicates a strong appetite for AI investments, reflecting a desire to ride the rising tide of AI innovation.”

In response to this demand, Fundrise launched an Innovation Fund aimed at democratizing access to both private and public markets. The fund particularly targets retail investors who previously lacked opportunities to invest in venture capital. Miller emphasized the importance of providing ordinary investors access to mature pre-IPO companies, echoing similar moves by investment giants like Goldman Sachs in the past.

Addressing concerns about the speculative nature of AI investments, Miller underscored the robustness of Fundrise’s diligence process. He highlighted the company’s registration with the Securities and Exchange Commission (SEC) and its team’s expertise in evaluating late-stage, mature companies with substantial revenue streams. Miller emphasized that while there are risks inherent in any investment, focusing on established companies mitigates some of the uncertainty associated with early-stage ventures.

Commenting on the comparison between the AI boom and the dot-com era, Miller acknowledged the potential for both booms and bubbles. However, he pointed to research suggesting that AI could become a $15 trillion market by the early 2030s, presenting significant wealth-creation opportunities. Miller emphasized the importance of distributing this wealth fairly, advocating for diversified fund portfolios that balance established, low-risk investments with more speculative ventures.

Regarding fees, Miller highlighted Fundrise’s commitment to a low-fee model, in line with the ethos of firms like Vanguard. By charging a management fee of 1.85% without carried interest, Fundrise aims to reduce costs for investors and democratize access to AI and other innovative sectors.

As the AI landscape continues to evolve, platforms like Fundrise are poised to play a pivotal role in democratizing access to this transformative technology, empowering retail investors to participate in its growth story.

Money mindfulness is a concept that encourages individuals to develop a conscious and intentional relationship with their finances, potentially reducing this stress. By incorporating financial wellness into your lifestyle, you can achieve a more secure and stress-free financial future, and each conscious step brings you closer to financial empowerment. Consider the following tips to learn how to integrate money mindfulness into your daily routine.

Budgeting with Purpose

Developing a purposeful budget involves tracking expenses and understanding the motivations behind your financial decisions. Identify your short-term and long-term goals, whether paying off debt, saving for a dream vacation, or investing in your education. 

By aligning your budget with your aspirations, you’ll find greater motivation to stick to it. Regularly revisit and adjust your budget as your financial circumstances and goals evolve. 

Emergency Fund Essentials

Consider your emergency fund as a financial safety blanket. Beyond covering basic living expenses, factor in potential health-related costs, car repairs, or home maintenance. The peace of mind with a well-padded emergency fund allows you to navigate unexpected challenges without jeopardizing your financial stability. 

Building an emergency fund is not a one-time task; it requires consistent contributions to ensure it remains robust over time. 

Investing for the Future

Successful investing is not about timing the market but about time in the market. Embrace a long-term perspective and resist making impulsive decisions based on short-term market fluctuations. 

Diversify your investments across various asset classes to minimize risk. Stay informed about market trends, economic indicators, and investment opportunities. Review and rebalance your portfolio to align with your evolving financial goals and risk tolerance. 

Mindful Spending Habits

Cultivating mindful spending habits involves breaking free from impulsive buying patterns. Before making a purchase, evaluate its impact on your overall financial picture. Consider the value it adds to your life and whether it aligns with your priorities. Embrace frugality without sacrificing quality or enjoyment.

Leverage technology to track and analyze your spending patterns, enabling you to identify areas for improvement and make informed choices that contribute positively to your financial well-being. 

Credit and Borrowing Consciousness

Understanding the terms and conditions of any credit or loan is crucial when you’re borrowing money. You can borrow money online in Canada from a reputable lender, but it’s still vital that you scrutinize interest rates, repayment schedules, and potential fees associated with borrowing. 

It’s also important to differentiate between good debt (like a mortgage or student loan) and bad debt (high-interest credit card debt). Monitor your credit score regularly and take proactive steps to address any issues. By approaching credit with consciousness, you empower yourself to leverage it wisely and avoid pitfalls leading to financial strain. 

Regular Financial Check-Ins

Treat financial check-ins as an opportunity for self-reflection and course correction. Celebrate milestones, no matter how small, and acknowledge your progress. If you encounter setbacks, use them as learning experiences to refine your financial strategy. 

Consider involving a trusted financial advisor in your check-ins for expert guidance. Making these check-ins a routine establishes a continuous feedback loop that enhances your financial mindfulness and adaptability.

The Use of Alternative Data

Alternative data, defined as any data that is not traditionally recognized in credit reporting, most commonly refers to specialty finance data and telco or utility data. Because most Americans have some form of bill to their name, including this data in a credit file can make the previously unscorable consumer, scorable. Whether it is paying back a loan, keeping up with utility payments, or any other kind of non-traditional lending, alternative data can help to bolster and prove the financial credibility of millions of Americans.

Having a thin or invisible credit file can present a slew of issues for many different groups of people. 1 in 3 adults suffer from this, and the consequences can be costly. For example, many of those who struggle with a lack of credit have to rely on higher cost alternatives. In addition, a subprime credit score can bring an additional over $32,000 in interest on an average 30 year mortgage. A shocking 57% of Americans have reported being unable to pay unexpected expenses from their savings. This has led most people to use credit cards, some to borrow from others, and some even to take out a personal loan. 1 in 3 Americans currently have more credit card debt than they do in their savings, and the time for change is now.

A Shift is Coming

The biggest shift that the addition of alternative data to the credit file will cause is the creation of a more inclusive economy. Studies have shown that an incremental 2 million consumers could qualify for prime offers, and even more will enter scorable credit brackets. Especially when artificial intelligence is layered, machine learning algorithms can utilize a credit scoring system to generate logical outcomes for consumers. Experts have also found that with telco data alone, individuals have experienced positive credit score changes up to 25 points above their original score. Under this new system, nearly 7 million U.S. consumers would be able to move from scorable to scorable, generating exponentially more financial opportunity.

Conclusion

The traditional method of generating and assigning credit scores is still a reliable guideline when determining financial responsibility. However, as time moves on, the credit industry must evolve with it, working towards a more expansive and inclusive way of operating. Now, those with previously thin credit files can bolster their repertoire, and those who were credit invisible can start their journey to financial freedom. Layering AI and alternative data onto the current considerations for financial reliability will support more people than ever before, fostering a thriving and inclusive economy. 

AI Integration at Klarna: Redefining Banking Services

Siemiatkowski highlighted Klarna’s visionary approach to banking services, driven by the ambition to become consumers’ digital financial assistant. The company’s pivot in 2015 reflected a forward-looking perspective, recognizing the potential for AI to revolutionize financial management. With the advent of AI chatbots, Klarna aims to empower users by providing personalized financial insights and optimizing decision-making processes. The successful deployment of AI technologies has enabled Klarna to achieve significant efficiencies, equivalent to the work of 700 employees.

Impact on Workforce and Cost Savings

While adopting AI may reduce the need for customer service agents, Siemiatkowski emphasized that Klarna collaborates with external providers for such services. The company’s focus on enhancing product usability and efficiency has naturally resulted in fewer customer service interactions. However, the implementation of AI represents a milestone in driving substantial cost savings and operational efficiencies.

Deepening Partnership with Openai

Siemiatkowski expressed gratitude for Klarna’s longstanding partnership with Openai, highlighting the mutual benefits derived from collaboration. As one of Openai’s largest customers, Klarna continues to explore innovative AI solutions to enhance its offerings and deliver value to customers.

IPO Plans and Strategic Considerations

Regarding Klarna’s IPO plans, Siemiatkowski emphasized the importance of timing and strategic readiness. The company’s profitability in key markets, notably the US, positions it favorably for a potential IPO. Siemiatkowski drew parallels with Google’s IPO, emphasizing the significance of proven business models and global expansion trajectories.

Navigating Boardroom Dynamics

Addressing recent boardroom developments involving Sequoia and key stakeholders, Siemiatkowski underscored the stability and continuity provided by longstanding board members like Michael Moritz. Despite occasional tensions surrounding control and governance, Siemiatkowski expressed confidence in the collective interests of shareholders and the company’s strategic objectives.

Looking Ahead: Klarna’s Commitment to Innovation and Growth

As Klarna continues its journey toward IPO readiness, Siemiatkowski reiterated the company’s commitment to innovation, customer-centricity, and sustainable growth. With AI as a cornerstone of its strategy, Klarna seeks to redefine the future of banking services, offering unparalleled value and convenience to users worldwide. As the company navigates evolving market dynamics and stakeholder expectations, it remains steadfast in its pursuit of excellence and leadership in the fintech industry.

According to Bloomberg, the company recently hired Michel Del Buono as chief investment officer. His duties will include overseeing a range of wealth-management services.

Providing wealth-management services could be a highly profitable business for the firm. Companies usually charge 1% of a client’s assets, with profits reaching as high as 50%.

While a16z did confirm Del Buono’s hiring to Bloomberg, it declined to comment on any future business plans.

Whether it’s a credit score, your focus on saving or how you spend your money, your financial habits impact more than your personal life. In fact, it can be a determining factor in your business’s success or failure.

1. Creditworthiness

One of the most significant ways personal finances influence your business’s outcomes is through your credit score. For many small businesses, securing loans or lines of credit is essential to funding your business, maintaining cash flow and fulfilling expansion plans. 

However, lenders may pull records of your personal credit score before providing you with any business credit. This is especially true when your business is in its infancy stage and still needs to establish a good credit history. 

A credit score of at least 670 or higher can give you the means to access low-interest loans and better credit terms. This provides you with the financial stability needed to gain traction for your business.

Conversely, a low credit score may lead to rejections or loans with high-interest rates, placing an extra financial burden on you and your business. If you need to work on your score, consider making timely payments and regularly checking your credit. A proper credit score will ensure you increase your chances of securing business funding.

2. Personal Debt

High levels of personal debt can create substantial vulnerabilities for a small business. When you are obligated to overwhelming debt, this can quickly drain your personal savings and leave you with less capital to invest in your company.

Racked-up debt often correlates to poor credit scores, further limiting your business’s access to credit. For example, a small business owner with high debt may have to use a significant amount of their income to pay it off. In turn, they may leave their business underfunded during critical periods for growth. 

Start getting rid of debt by utilizing the “debt avalanche method.” This tactic involves focusing on paying off debt with the highest interest rate. Then, you will make minimum payments each month on that account. 

Once you pay that debt, you can focus on settling the next debt with the highest interest and so forth. However, you should take the payment budget you previously used, plus some extra cash, to put it toward the next account. Implementing this strategy can give you a confidence boost as you keep going because it is a quick method for debt repayment.

3. Financial Discipline

Your personal financial habits often predict how you will manage your business finances. That is why it is crucial to implement financial discipline in your personal life. These tactics include:

• Sticking to a budget
• Avoiding unnecessary debts
• Making payments on time

Establishing these habits lets you maintain a positive cash flow and manage your business expenses wisely. Additionally, it allows you to plan for future financial needs. All of these factors are crucial for running a successful business.

To ensure you incorporate good financial habits, consider developing a strict budget for your personal and business endeavors. Start by creating a realistic budget that includes all your income sources and expenses, and consciously stick to it.

Sustaining this practice will give your a clear picture of your financial health. Plus, it will instill habits that avoid impulsive spending and keep your finances under control 

4. Personal Savings and Investments

Personal savings and investments are crucial when owning a small business, especially if it is new. They can provide you with a source of capital to kickstart your company, fund expenses and improve cash flow. 

For instance, an entrepreneur may need to dip into their personal savings to cover startup costs — such as paying for a new email marketing platform to set up campaigns and reach new customers. Or, they might need to invest personal assets into their company for business expansion. 

Therefore, it is important for small business owners to practice good savings and investment habits. One way to achieve this is by making it a habit of setting aside a portion of your income regularly. Doing so will help you build a monetary cushion over time. 

Additionally, you could diversify your investments to have a varied portfolio. That way, you reduce risks in your business and provide yourself with various sources of capital.

5. Personal Financial Buffer

A personal financial buffer can be vital, as it acts as a safety net and provides financial stability for your small business. A financial cushion could be in the form of emergency savings or liquidable investments, making it easy to manage unforeseen business expenses or downturns. Plus, it keeps you from accruing additional debts or utilizing crucial aspects of your operations.

For example, a small business owner with a financial buffer can still operate during a period of slow sales. As such, they can keep business as usual without the slow period impacting their business or personal lifestyle. 

Ensure you are gaining a healthy financial buffer by using the 50/30/20 rule. This rule suggests that you allocate a portion of your take-home pay to different parts of your personal life. For instance, 50% of your paycheck should go to necessities, while 30% goes toward things you want. The last 20% of your pay ends up in your savings, which is the portion that contributes to your financial buffer. 

Implementing the 50/30/20 is one of the easiest ways to save money, allowing you to build a reserve over time. As you place more money into your savings after each paycheck, you will have a solid foundation for supporting your business during challenging financial times.

Use Personal Finances for Small Business Success

Several facets of how you manage your personal finances have a way of affecting your business’s growth, stability and overall success. From your creditworthiness and spending habits to your personal savings, these are the most important aspects to pay attention to when focusing on your financial endeavors. 

Take the time to assess your financial situation and look at ways to build it up to a healthy status. While the task of building and managing your personal finances may seem laborious, hard work pays off in the long run and will give your small business the boost it needs to grow.

Yahoo Finance is one of the most popular destinations on the web for investment news, and Yahoo sees an opportunity to expand the insights its provides with Commonstock.

“Our vision for Yahoo Finance is to be the premier singular destination for all our customer’s financial needs,” said Tapan Bhat, President of Yahoo Finance. “Our platform caters to every stage of the investment process – from providing pre-trade market news and analysis, facilitating engaging pre- and post- trade conversations within our community of like-minded investors, to offering effective self-directed portfolio management tools and insights. Acquiring Commonstock reinforces this vision. The Commonstock team has built a trusted community, sharing high-quality insights and knowledge that help everyday investors create wealth. Together, Yahoo and Commonstock will further empower investors of all skills and levels through a one-stop shop for smart financial decisions.”

Commonstock already has 150 million monthly global users, significantly growing Yahoo Finance’s user base.

“Joining Yahoo Finance is a tremendous opportunity to build community and products on the largest consumer finance stage, which will positively impact millions of loyal users,” said David McDonough, CEO and founder of Commonstock. “For me, it’s personal. Yahoo Finance changed my career trajectory during the financial crisis over a decade ago. I was able to teach myself about the stock market and learned from other investors on the Yahoo Finance message boards. The unique blend of Yahoo’s reach and Commonstock’s expertise in creating retail investment communities is an incredibly powerful combination. This acquisition will allow us to accelerate our mission at scale, emphasizing community-driven knowledge and ensuring the amplification of quality insights to separate signal from noise.”

Terms of the deal were not disclosed.

Under US law, taxpayers that earn less than $69,000 per year can file their taxes free. While Intuit technically offers a free option, the company has faced ongoing accusations that it makes its free option difficult for users to find, thereby unfairly charging users who shouldn’t be paying.

The FTC has weighed in, upholding a decision by Chief Administrative Law Judge (ALJ), D. Michael Chappell “that Intuit has engaged in deceptive advertising in violation of Section 5 of the FTC Act and said that the defenses that Intuit raised lack merit.”

Under the FTC’s order, Intuit will not be allowed to market its services as “free” without significant changes to its current practices.

The Commission’s Final Order prohibits Intuit from advertising or marketing that any good or service is free unless it is free for all consumers or it discloses clearly and conspicuously and in close proximity to the “free” claim the percentage of taxpayers or consumers that qualify for the free product or service. Alternatively, if the good or service is not free for a majority of consumers, it could disclose that a majority of consumers do not qualify.

The order also requires that Intuit disclose clearly and conspicuously all the terms, conditions, and obligations that are required in order to obtain the “free” good or service. If the advertisement is space constrained and not displayed on any TurboTax website, app, email or other company owned or controlled platform, Intuit is not required to include all the terms and conditions in the advertisement itself but must disclose either that a majority of consumers do not qualify for free (if true) or the percentage that do as well as provide a link in such space-constrained online ads that details all the terms and conditions, according to the Commission order.

The order also prohibits Intuit from misrepresenting any material facts about its products or services such as the price, refund policies or consumers’ ability to claim a tax credit or deduction or to file their taxes online accurately without using TurboTax’s paid service.

Lowe’s was one of a handful of companies that had yet to support Apple Pay, but 9to5Mac reports that the company has finally adopted the payment system. The outlet’s readers report support for Apple Pay beginning last week.

While certainly one of the largest holdouts, Lowe’s was not the only one. Walmart continues to resist calls for it to adopt Apple Pay.

First spotted by MacRumors, some users started having trouble with Apple Pay, Apple Card, Apple Cash, and Wallet early Wednesday morning. Apple acknowledged the issue, saying that only “some users” were impacted.

According to the company’s System Status page, it appears the issue has been resolved.

Venmo announced the change in a Help Center post:

Due to recent changes, Venmo can no longer be added as a payment method. Venmo will remain available to users who currently have it enabled in their Amazon wallet until 01/10/24. 

A spokesperson for PayPal, Venmo’s owner, provided the following statement to TechCrunch:

“Venmo and Amazon have agreed to disable Venmo as a payment option to pay on Amazon at this time. Customers can continue to add their Venmo debit card or credit card to their Venmo wallet to pay on Amazon. We have a strong relationship with Amazon and look forward to continuing to build on it.”

According to Reuters, Zelle originally pushed back against calls for it to issue refunds for scams, since federal law only requires financial institutions to refund money lost in unauthorized transactions. With a scam, however, the customer is ultimately tricked into transferring the money themselves.

The outlet reports that Zelle was under pressure from lawmakers to address the growing issue, resulting in the company changing its policy:

The new policy marks a major shift from last year when bankers, including JPMorgan CEO Jamie Dimon, told lawmakers worried about rising scams that it was unreasonable to require banks to refund transfers that customers were tricked into approving.

“We have had a strong set of controls since the launch of the network, and as part of our journey we have continued to evolve those controls… to keep pace with what we see is going on in the marketplace,” said Ben Chance, chief fraud risk officer at Early Warning Services (EWS).

“Zelle’s platform changes are long overdue,” said Senator Elizabeth Warren in a statement to Reuters. “The CFPB is standing with consumers, and I urge the agency to keep the pressure on Zelle to protect consumers from bad actors.”

Musk and CEO Linda Yaccarino have made no secret of their desire to see X become a central part of users’ lives, moving far beyond a mere social platform, but a recent call with employees reveals just how ambitious the plan is.

“When I say payments, I actually mean someone’s entire financial life,” Musk said, in audio of the obtained by The Verge. “If it involves money. It’ll be on our platform. Money or securities or whatever. So, it’s not just like send $20 to my friend. I’m talking about, like, you won’t need a bank account.”

Given how irresponsibly Musk has led X — cutting moderation teams, defaulting on lease agreements, not paying employees severance packages, and much more — the idea of X being the center of users’ financial lives is a truly terrifying prospect.

In a report compiled by Partech Africa, funding for new tech and financial startup companies in Africa grew by 8% throughout last year, with the total valuation of new fintech reaching $6.5 billion through more than 764 rounds. Additionally, the same report indicates debt funding doubled by 102% through 71 rounds, making Africa one of the most active emerging startup markets globally. 

Despite the challenging headwinds experienced across the tech sector, African fintech companies prevailed and remain an attractive investment opportunity for venture capital investors. 

The bumpy road of 2023

Although the last several years following the pandemic revealed the upside potential of Africa’s growing fintech ecosystem, conditions have somewhat slowed this year, as venture capital funding has started drying up and those previously enthusiastic over the near-term potential begin to withdraw their support – for now at least. 

A report covered earlier in the year revealed that there has been a 21% downturn in African fintech funding during the first six months of the year. 

The same report suggests that slower, and perhaps less positive growth is expected for the full-year, as venture capital investors withdraw their support against a backdrop of continued macroeconomic difficulties. 

Across the board, central banks have initiated aggressive monetary policies to tame soaring inflation. In the United States, the Federal Reserve began raising interest rates back in March 2022 to fight off sticky inflation. 

Through a series of aggressive hikes, interest rates are now nearing a twenty-year record peak, with some experts suggesting that more rate hikes are still left for the year before the central bank begins pausing its inflation-busting campaign. 

Among other factors that have aided the slowdown in Africa’s fintech ecosystem are political tension, civil unrest, and the slowing of economic activity across the region due to turbulent macro-economic conditions. 

However, there remains a lot of upside potential despite the steady downturn experienced throughout the first half of the year. New technology and the advancement of Artificial Intelligence (AI) on the back of widespread digitalization are helping to expand the competitive landscape even further. 

Fintech activity alive and well 

While new funding rounds have slowed somewhat this year, the overall activity of new and existing fintech startups continues to experience significant growth. 

According to Finnovating Africa, a report published by Disruptive Africa, the number of active fintech startups has increased by 17.7% over the last two years, with more than 678 fintech companies currently active in the region. 

This is a significant increase compared to the 576 fintech startups accounted for in 2021 when the last Finnovating Africa report was released. What’s more, the growth in active fintech companies has been on track with previous estimates. Between 2019 and 2021, the number of active fintech ventures rose by 17.2%, and between 2017 and 2023 that figure has ballooned by 125.2%. 

This development isn’t an isolated event and is seen taking place across the continent, with major markets including Egypt, Kenya, Nigeria, and South Africa seeing the biggest activity. 

The same Disruptive Africa report indicates that participation rates of new fintech startups soared between 2019 and 2021, with nearly 40% of currently active fintech startups established within that time frame. 

The onset of the global pandemic helped to fast-track these developments, as tech-enabled companies and financial service providers leveraged the opportunity to induce the regional market with technology and fintech-based tools. 

Earlier analysis by the global consulting firm, McKinsey and Company showed that African fintechs accumulated between $4 billion to $6 billion in estimated revenues in 2020. 

Yet, despite making inroads, cash remains the biggest and most important form of transacting across the continent, accounting for nearly 90% of financial transactions across Africa. 

Considering the positive growth, the region now has nine fintech unicorns – companies with valuations of $1 billion or more. 

These fintech unicorns, scattered across the continent, have helped reshape the financial landscape, further enabling existing financial service providers to seek more innovative solutions for the future African consumer. 

Among the companies that have established their dominance across the region are Chipper Cash, OPay, Flutterwave, and MNT-Halan, an Egyptian-based financial services provider being the most recent addition to the list. 

MNT-Halan recently secured $400 million in equity and debt funding at a valuation of $1 billion. Around half of the funding – around $200 million – was secured through an investment by Chimera Investments, an Abu Dhabi-based investment firm. The company provided the investment in exchange for 20% equity of MNT-Halan. 

Growth in the region’s fintech market has primarily been driven by increasing demand for more affordable, reliable, and democratized financial services. 

McKinsey research suggests that cryptocurrencies, blockchain, digital wallets, payments, and account management are among the segments that will see the biggest demand in the coming years, with an estimated 10% annual growth until 2025. 

These estimates indicate the future potential new fintech companies can bring to the landscape in the coming years, and how venture capital investors can align their strategies with these companies to leverage these opportunities in the market. 

Reaching global potential 

While domestic activity has steadily been on the rise, a handful of African fintech companies have been making global headlines in more recent months. 

A report compiled by CNBC together with Statista, an independent research firm, revealed that four African fintech companies recently featured on the list of top 200 global fintech companies. 

The report categorized each of the companies and classified them into nine different categories, including neobanking, digital payments, digital financial planning, and digital wealth management, among other categories. 

Among the 200 companies featured on the list, is in no particular order, Nigeria’s Kuda, Egypt’s, Fawry, South Africa’s digital payment platform, Yoco, and OPay, another Nigerian fintech startup. 

These companies already have a significant presence within their home countries, assisting consumers and merchants with innovative and advanced digital payment solutions. 

Kuda, for example, enables users to actively manage their finances and complete transactions online. The company reached more than six million active users in Nigeria last year, four years after its launch in 2019. 

Also in Nigeria is OPay, a mobile-friendly finance application, that allows users to make payments, transfers, loans and manage their savings through the platform. Currently, OPay has more than 10 million registered users. 

Elsewhere in South Africa, the digital payments and software company, Yoco now helps to power small businesses, with electronic card machines and convenient payment methods. The company now supports more than 200,000 South African small to medium enterprises (SMEs) and processes more than $2 billion in annual transactions. 

While these companies only represent a small percentage of the bigger picture, the African fintech landscape continues to offer growing opportunities for both innovators and investors alike, as they set out to revolutionize how African consumers bank and transact. 

Final Words 

Yes, there are still significant challenges ahead, and it would require venture capital investors to carefully consider their options as they seek to leverage the emerging African fintech ecosystem. 

While the global landscape continues to experience softening demand and slowing investment, perhaps investors would look to Africa as the next big opportunity that would not only help fast-track the digitalization of the continent’s financial landscape but further boost the region’s active participation on the global stage. 

According to CNBC, five of the top banks in the US have laid off a combined 20,000 employees. In fact, the only bank that has yet to announce mass layoffs is the biggest, JPMorgan Chase.

Economic uncertainty and a slowing lending market — as a result of higher rates — have contributed to the situation.

“Banks are cutting costs where they can because things are really uncertain next year,” Chris Marinac, Janney Montgomery Scott research director, told the outlet.

“They need to find levers to keep earnings from falling further and to free up money for provisions as more loans go bad,” he added. “By the time we roll into January, you’ll hear a lot of companies talking about this.”

Despite the number of jobs that have already been cut, at least some bank execs are warning that more cuts are yet to come.

“We still have additional opportunities to reduce headcount,” Wells Fargo CFO Mike Santomassimo told analysts. “Attrition has remained low, which will likely result in additional severance expense for actions in 2024.”