What’d I miss? News and Insights that got noticed - Week 27

Key themes this week (June 28 - July 4)

• Apple co-founder Steve Jobs had a 'beer test' he would use for interviewing people at company
• New York BNPL bill is dead, for now
• Revolut soars to record profit
• Australia Outpaces US in Online BNPL Adoption Nearly 3 to 1

Apple co-founder Steve Jobs had a 'beer test' he would use for interviewing people at company

“…He had a clever test to help him decide who to hire…”

Key takeaways:

• Steve Jobs used an unconventional "beer test" to interview potential employees at Apple which involved taking candidates for a walk and a drink in a casual setting.
• The relaxed atmosphere encouraged honest answers and helped Jobs get to know the candidates better.
• Questions were open-ended and focused on personal experiences and accomplishments.
• Jobs' goal was to find the best of the best, or "A-Players," who would thrive working together.

LinkedIn Post

New York BNPL bill is dead, for now

"...Hopes for passing a 2024 buy now, pay later bill in New York state to regulate the nascent industry expired with the end of the legislative session last month. But next year could be a different story..."

Key takeaways:

• Efforts to pass a New York state bill regulating the buy now, pay later (BNPL) industry failed to pass before the end of the legislative session in June.
• The push for regulation began with Gov. Hochul's proposal in January, followed by competing bills from Assembly Democrats and Senator Sanders.
• These bills aimed to establish consumer protections such as fee limits, disclosure requirements, and credit reporting standards.
• The main obstacle to passing the legislation was a lack of time to reconcile the different versions of the bill.
• Stakeholders, including the American Fintech Council, are optimistic that a mutually agreeable bill can be passed in the next legislative session.

LinkedIn Post

Revolut soars to record profit

"...Fintech juggernaut Revolut has surged to a record profit of $545 million in 2023, boosting its long-term quest to secure a UK banking licence.

Revolut group revenue increased by 95% from $1.1bn in 2022 to $2.2bn over the course of the past year, aided by record customer recruitment and higher interest rates..."

Key takeaways:

• The company added 12 million new customers in 2023, reaching a total of 38 million globally.
• Customer balances grew from $16.4 billion to $22.7 billion, and paid subscriptions increased by 41%.
• CEO Nik Storonsky expressed confidence in securing a UK banking license despite the complexities involved due to the company's size.

?LinkedIn Post

Australia Outpaces US in Online BNPL Adoption Nearly 3 to 1

"...The results revealed that only a small fraction of consumers paid for their most recent eCommerce purchase using BNPL — roughly 1% in most countries surveyed. While only 0.9% of U.S. consumers reported having used BNPL to pay for their last online purchase, that share nearly triples to 2.5% for consumers in Australia. Indeed, adoption in Australia was considerably higher than in any other country with the next-greatest share being the Netherlands, at 2.1%..."

Key takeaways:

• The high adoption rate in Australia is attributed to the early introduction and integration of BNPL services like Afterpay and Sezzle into the market.
• However, the Australian government is introducing stricter regulations for BNPL firms, including mandatory credit checks for users.
• Despite regulatory challenges, the BNPL industry continues to grow, with companies like Klarna expanding their services and subscription base.

LinkedIn Post

Lloyds Bank to close further 60 branches

"...Lloyds Banking Group has revealed 60 new branch closures for the remainder of the year and 2025. In total, the banking group, which includes Halifax and Bank of Scotland, has earmarked 190 branches for closure in 2024 and 47 next year. The new branches added to the list include 28 Lloyds Bank, 17 Halifax and 15 Bank of Scotland sites and will take place between October this year and June 2025. Lloyds Group says use of the latest 60 branches set for closure had fallen by an average of 52% in the last five years, as more customers chose to manage their money online or via apps..."

Key takeaways:

• Lloyds Banking Group, including Halifax and Bank of Scotland, will close 60 more branches between October 2024 and June 2025.
• Lloyds emphasizes alternative banking options like mobile apps, online banking, phone banking, Banking Hubs, and Post Offices.
• Other banks, including NatWest, Barclays, and TSB, have also announced branch closures this year.

LinkedIn Post

Accounting Industry Ripe for GenAI Integration, Andreessen Horowitz Says

"...The integration of AI in accounting is not surprising. Bookkeeping, tax preparation, and auditing involve repetitive tasks that can benefit from AI. The accounting profession faces a dual challenge: an aging workforce and a decline in new entrants. The report states, “75% of CPAs could retire in the next 10 years.” Additionally, the decreasing number of students completing accounting degrees in the U.S. exacerbates the problem of maintaining a workforce to meet client demands..."

Key takeaways:

• AI is set to transform the accounting industry, with accounting firms eager to leverage its potential for increased efficiency and managing heavier workloads.
• The accounting profession faces challenges from an aging workforce and a decline in new accountants, making AI integration a timely solution.
• AI can streamline accounting workflows by automating tasks like data extraction, reconciliation, and report generation, allowing accountants to focus on higher-value work.
• Despite the benefits, AI adoption in accounting faces challenges, including the need for fine-tuned models, potential risks associated with data misuse and errors, and the inability of AI to fully replace human judgment in areas like client service.

LinkedIn Post

POLL Results: What industry is most ripe for AI integration?

The article from PYMNTS on the Andreessen Horowitz report that indicates that accounting is ripe for AI Integration was the inspiration for this week's poll question.

So I asked the LinkedIn audience to help out by indicating which industry you think is MOST ripe for AI integration?

Key takeaways:

• 42% of respondents think it is banking
• 33% of respondent think it is the legal industry
• 17% think it is accounting
• 8% selected insurance as their answer

These were the answers at time of publishing of this newsletter for final results go to:

LinkedIn Post

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If you just want to listen to the What’d I miss Top 3 from last week you can watch this video…?

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