The Plaid Hack Fallout: Fintech’s Darkest Secret Revealed

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    Fintech Frenzy: The Great Hack and the Rise of the AI Empire

    Welcome to the wild west of fintech, where the stakes are higher than ever and the stakes are higher than ever. This week, we’re diving into the chaos of Evolve Bank’s massive data breach, the rise of AI-powered financial services, and the M&A madness that’s taking over the industry.

    The Big Hack

    Evolve Bank, a financial institution popular among fintech startups, has been hit with a devastating cyberattack that could have affected its partner companies and their customers. The hack, which involved the theft of sensitive customer data, has sent shockwaves through the fintech community, leaving many wondering how this could have happened and what the consequences will be.

    AI Takes Over

    Meanwhile, AI-powered financial services are taking over the industry, with companies like Hyperplane and Salt Labs getting snapped up by bigger players. Robinhood is adding AI features to its investing app, and Plaid is expanding its product offerings to include AI-powered tools. It’s clear that AI is the future of fintech, but what does this mean for jobs and the economy?

    M&A Madness

    The M&A frenzy is in full swing, with companies like Chime and Nubank making big moves. Chime is acquiring Salt Labs for a reported $173 million, while Nubank is snapping up Hyperplane. What’s driving this M&A madness, and what does it mean for the future of fintech?

    Dollars and Cents

    Payabli and Rainforest are raising millions to build out their payment infrastructure, while Connect Money is tapping into the African market. Feather is helping expats navigate health insurance systems, and Plaid is expanding its enterprise customer base. It’s a wild world out there, but someone’s gotta make the deals happen.

    What Else We’re Writing

    We’re keeping an eye on the latest developments in fintech, from Citi’s AI-powered job displacement to Goldman Sachs’ generative AI tool. We’re also tracking the rise of AI-powered financial services, from trade-in platforms to insurance platforms. And, of course, we’re keeping an eye on the M&A madness, with deals like Flipkart’s payments app and Point72 Ventures’ pivot towards AI.

    High-Interest Headlines

    • Citi sees AI displacing more bank jobs than any other sector
    • Goldman Sachs deploys its first generative AI tool across the firm
    • Billionaire Steve Cohen’s Point72 Ventures lays off fintech team in pivot towards AI
    • Pay for new stuff by trading in your old stuff right at checkout
    • Prudence, Profits, and Growth (global fintech report co-authored by BCG and QED Investors)
    • Only up from Here: 2024’s State of Fintech and the Hero’s Journey (from Bain Capital Ventures partner Matt Harris)

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