NEWSLETTER 2.0
FEBRUARY 16, 2024
MasterCard Generative AI
By: Connor Menke
Mastercard is a commonly known credit card company, and is the second largest payment technology corporation in the world. This payment network processor has partnered with financial institutions, such as Bank of America, Chase, Capital One, and many more banking institutions around the globe. Since credit cards became prevalent, Mastercard has been a leading figure in the payment transaction processing. The payment services its cards offer have been critical in how almost every person operates in their day to day lives.
The average American has 3 credit cards, which means that Mastercard being one of the largest corporations to provide services for credit cards has had the opportunity since their popularization in the 1960s to adapt to changes that occur within the market or new ways of allowing transactions. One evolution that has happened recently is Apple Pay, this mode of payment has streamlined the forms of payments, and with the next evolution of artificial intelligence there are more opportunities for Mastercard to continue to innovate for the future.
In a recent announcement it was revealed that Mastercard joined the generative artificial intelligence sector and has now created a model that predicts that fraud detection can now be propped up nearly 300%. This massive increase in fraud detection is just one example of how generative artificial intelligence can change the game in how people using mastercard can live more comfortably knowing their payment information is more protected. The ability to predict credit card fraud, and creating more preventative measures to hinder fraud to take place is a positive action that Mastercard is using to continue to grow their business model into the future.
An Emerging Amplifi Capital (UK)
By: Kelvin Sekigahama
An emerging company in the FintTech world is Amplifi Capital, a consumer lending platform that offers unsecured personal loans and provides access to consumers who can’t access credit from traditional high-street banks. Amplifi Capital hopes to support the growth ambitions of community-orientated financial institutions such as Credit Unions, Building Societies, and CDFIs by providing their state-of-the-art fintech platform. Amplifi has been trading in the UK and working with Community Development Financial Institution (CDFI) and Credit Unions since 2015. In 2018 Amplifi set up “My Community Finance”, a consumer-facing brand and marketing platform to generate leads and allocate loans to the credit unions and CDFIs in the Network. Some services Amplifi provides are: data risk management, credit control and collection, market access, banking as a service, and capital raising. Amplifi also has a goal of committing to responsible lending. It’s revolutionizing how these banking platforms operate by attempting to increase access to credit products for underserved households, ensuring affordable and inclusive financial solutions. The company tries to combine their technology with its customer-centered approach. They market themselves on the idea that their credit unions are customer owned, contrasting from traditional banks who in the past have lost their customers' money in attempts to create greater profits for shareholders. For customers this platform offers reasonable security with the FDIC insuring up to 250000$ worth of asset deposits, while also having the investing focus of long term sustainability. Additionally, Amplifi Capital has secured £22.5 million (USD 28.3 million) in funding from M&G Investments, which marks a pivotal moment for the growing company. Amplifi also has an entire ecosystem. Gojoko is their front-to-back FinTech platform which suits the needs of credit unions and covers the entire spectrum of savings and loans. The platform is a combination of best-in-class software suppliers such as Mambu, Modulr, ADP, AWS, etc built around an in-house micro-services and orchestration platform allowing for automated credit, KYC, Fraud, affordability, and identity checks. Keep tabs on this company as it seems like the game-changer in the FinTech world.
Apple Vision Pro: Seeing into the Future
By: Kelvin Sekigahama
Apple, one of the most renowned and well established tech giants known for their innovative phones, high quality computers, and much more has just released a new product ready to dominate the market and flood into many homes. Their new product, Vision Pro, is a virtual reality set up that allows for its users to actively engage in many different activities and make imagination become reality. The product itself isn’t of much importance, it’s the effects it has on the market and how it will revolutionize not only the virtual reality industry, but Apple and other businesses as well.
Apple’s credibility has already given it the ability to sell out 200,000 units of its Vision Pro’s set within the first 10 days of making preorders available (New York Post). This rapid sellout showcases the changes within the technological industry and the push to make virtual reality more accessible and mainstream. The features included in the Vision Pro allow its user to have spatial computing, revolutionized interactions with apps, and so much more. It is said to be “an infinite canvas for apps, allowing them to coexist side by side seamlessly”(Merge). Apple is now leading the way in the virtual reality industry and it puts pressure on other businesses like Microsoft, Nvidia, and other companies exploring the virtual reality market. While Apple may be leading the way right now, other companies are going to be forced to step up if they want to compete in this competitive market.
The introduction of the Vision Pro will not deteriorate the market for virtual reality, rather accelerate it as more companies will try to mimic Apple and their invention. The future is now, and many industries will look to try and improve their own virtual reality softwares. This could lead to a major shift in the job market. Within 2022, the virtual reality market stood at $58.7 billion, but by 2030 will be boosted to $441.84 billion. VR is back on top as the latest trend and will be exciting to examine as the competition continues to increase.
Bitcoin ETF
By: Luke Meyer
The Bitcoin Exchange-Traded Fund (ETF) has gained significant attention in the financial markets, representing a landmark development in the integration of cryptocurrency into traditional investment portfolios. An ETF is a type of investment fund and exchange-traded product, with shares that are tradable on a stock exchange. The Bitcoin ETF allows investors to gain exposure to the price movements of Bitcoin without going through the process required to directly own digital currencies. The ETF provides investors a regulated and familiar form of security for institutions that might be cautious about directly holding cryptocurrencies.
Blackrock, the world's largest investment manager, has come into play with this recent ETF. Blackrock and many other major investment management companies have shown increased interest in cryptocurrencies over the years. Some of these major funds now offer their own individual Bitcoin ETFs that directly track the day-to-day movement of Bitcoin prices, known as spot prices. These companies have explored ways to incorporate digital assets into their offerings, and the emergence of Bitcoin ETFs aligns with this strategic shift. Traditional investors who may have been skeptical of cryptocurrency will now be more inclined to invest seeing institutional acceptance through major investment managers such as Blackrock. There are many people who are hesitant about cryptocurrency due to concerns about regulatory uncertainties and security, but this brings a level of credibility to the digital asset market for these types of investors.
As Bitcoin ETF’s continue to gain popularity, more institutional players will enter this market underscoring the integration of cryptocurrencies into traditional financial markets. This evolution signifies a major stride towards widespread acceptance and advancement of digital assets. Yet, there are questions around whether Bitcoin, and by extension the wider cryptocurrency market, is truly suitable for everyday investors. Reasons for this concern are due primarily to the extreme volatile nature of crypto currency, along with instances of fraud and pump and dump schemes occurring in Crypto marketplaces.
The release of Bitcoin ETFs signifies a greater acceptance of cryptocurrencies in financial markets. The ETFs future will be shaped by the regulatory environment and its institutional adoption in the market. While this product offers new opportunities for investors, it also presents challenges and risks that require careful consideration