What’d I miss? News and Insights that got noticed - Week 36

Key themes this week (August 30 - September 5)

• Klarna to use AI to halve workforce
• [POLL Results] most organizations say they can make a Prime Rate change in all your organization's systems in an afternoon (48%)
• Zilch Exceeds $130 Million in Revenue and Marks First Monthly Profit
• [PODCAST] "Banking on Information," with Rab Govil, Founder and CEO of Naehas

Klarna to use AI to halve workforce

[NOTE: This was such big news and a proof point for use of AI that it was still the most noticed news article a second week]

"...In his letter to shareholders, CEO Sebastian Siemiatkowski hailed the impact of AI, revealing: "Our AI assistant now performs the work of 700 employees, reducing the average resolution time from 11 minutes to just 2, while maintaining the same customer satisfaction scores as human agents."

The company has trimmed its workforce through natural attrition from 5000 to 3800 over the last year and Siemiatkowski is expecting more dramatic reductions..."

Key takeaways:

• Klarna has significantly improved its operational efficiency through the use of AI, with its AI assistant now performing tasks equivalent to 700 employees. This has reduced the average resolution time from 11 minutes to just 2 minutes, while maintaining customer satisfaction levels
• The company has reduced its workforce from 5,000 to 3,800 through natural attrition and plans to further reduce it to around 2,000 employees. This reduction is being managed through a hiring freeze outside of engineering roles rather than direct layoffs
• Klarna has seen a 27% increase in revenue in the first half of 2024 and a significant rise in profits, largely driven by its expansion in the U.S. market. The company now partners with a quarter of the top 100 U.S. merchants, contributing to a 93% year-on-year increase in gross profit in the country

LinkedIn Post

[POLL] How long does it take to make a Prime Rate change in all your organization's systems?

With a potential Fed Funds Rate change coming up (I am not making any promises), there is always the resulting change in the Prime Rate. Because it has been over a year since the Prime Rate changed, it might be time to dust off the playbook for making that change in all systems and marketing offers.

That raises the question for this week: “How long does it take to make a Prime Rate change in all your organization's systems?”

Key takeaways:

• 48% of respondents indicated it can be done in an afternoon in their organization
• 21% say it takes them a couple of days to change the Prime Rate in all systems
• For 14% of respondents it takes a couple of weeks
• And for 17% it takes even longer to make the Prime Rate change in all systems
• These were the results at time of publishing of the newsletter for final result check the link here:

LinkedIn Post

[PODCAST] "Banking on Information," with Rab Govil, Founder and CEO of Naehas

We are thrilled to share the latest episode of the podcast, "Banking on Information," hosted by Rutger van Faassen, featuring Rab Govil, CEO and founder at Naehas. In this episode, Rutger and Rab dive deep into his WHY, WHAT, and HOW of customer engagement and compliance in highly regulated industries.

Join us as we explore the proven approach and wealth of experience that Rab brings to the table, helping financial institutions get the customer experience right while also making sure it is compliant and seamless to deliver.?

Whether you're a finance professional or just curious about the future of banking, this episode is packed with valuable information and thought-provoking discussions.

?? Listen now on the Informationbanker’s YouTube channel and stay tuned for more episodes that will challenge the status quo and inspire change in the financial services industry.

You can find the FULL episodes with additional Futures Thinking insights from Rab here: https://lnkd.in/euyazv_A

Key takeaways:

• Rutger and Rab dive deep into his WHY, WHAT, of customer engagement and compliance in highly regulated industries
• Getting the customer experience right when making offers to banking customers is crucial while also making sure it is done in a fully compliant way
• Key use cases Naehas helps clients with are making sure offers are made in a compliant way and create a great customer experience as well as being able to track and measure the elements of an offer to make sure the customer gets what was promised
• Rab describes a possible future where customers will engage more with their financial institutions through multiple channels and making sure messaging and offers are consistent and compliant is a crucial element in this (check out the podcast to see what this looks like)

LinkedIn Post

Zilch Exceeds $130 Million in Revenue and Marks First Monthly Profit

"...The speed at which Zilch has achieved profitability places it in the same bracket as European FinTech giants such as Revolut, Starling Bank and Monzo Bank,” the release said. “All four companies also reported revenues in excess of $130 million within three to five years, with Zilch almost doubling revenues in the year to March 2024.”

By comparison, the time it takes the average tech company to surpass $100 million in revenue is eight to 10 years in the United States, 15 in Europe and 17 in the United Kingdom, per the release..."

Key takeaways:

• Zilch, an ad-subsidized payments network, achieved its first profitable month in July 2024, with its revenue run rate exceeding $130 million
• The company's growth rate is comparable to European FinTech giants like Revolut, Starling Bank, and Monzo, reaching $130 million in revenue within 3-5 years, which is significantly faster than the average tech company
• Zilch recently raised $127 million in debt financing via Deutsche Bank, which will be used to launch new products and expand its customer base as it prepares for an IPO. The company allows customers to make purchases and pay off their debt in interest-free monthly installments

?LinkedIn Post

U.S. Bank works to simplify SMB banking, payments

"...Citing entrepreneurs’ growing desire to get small-business tools from a one-stop shop, U.S. Bank is counting on its ability to provide both merchant acquiring and banking services to stand out in a highly competitive market.

The Minneapolis-based lender, which owns merchant acquiring unit Elavon, Inc., faces no shortage of rivals in serving small-business owners. JPMorganChase is the biggest merchant acquirer, and Bank of America and Wells Fargo have stakes in the market, too..."

Key takeaways:

• U.S. Bank aims to simplify SMB banking and payments with a one-stop shop approach
• The bank is integrating products to offer unified solutions for banking, payments, and software
• U.S. Bank emphasizes SMB access to capital, ranking among top SBA lenders

LinkedIn Post

Bill Gates identifies the biggest burden being passed on to his children after seeing his daughter harassed online

“…A high-profile figure himself, Gates has seen scrutiny extend to his family. His daughter Phoebe, in particular, has struggled with being harassed online.

“Hearing my daughter talk about how she’d been harassed online, and how her friends experienced that quite a bit, brought that into focus in a way that I hadn’t thought about before,” Gates—a father of three—continued…”

Key takeaways:

• Bill Gates sees misinformation as a major issue for future generations, realizing that access to information doesn't guarantee accuracy
• Gates's daughter Phoebe has faced online harassment, deepening his awareness of misinformation's personal effects
• Gates supports rules to manage misinformation while preserving free speech, suggesting AI could help detect and counter false information

LinkedIn Post

Maryland gets tough on BNPL

"...The Office of Financial Regulation determined that BNPL is a loan under Maryland law, and therefore any companies using this financing approach need to be licensed as a loan provider...”

Key takeaways:

• Maryland fined Four Technologies $45,000 for unlicensed BNPL operations
• Zip suspended services in Maryland due to licensing issues
• Maryland requires BNPL providers to have consumer lending licenses, with some exceptions

LinkedIn Post

Sunday Creator and Founder Power Walks over the Brooklyn Bridge

This weekend we had another Power Walk where we walked the Brooklyn Bridge. We had great turnout and the weather was perfect.

We started in FiDi in front of Delmonico's and after walking across the Brooklyn Bridge ended the walk on the rooftop in DUMBO.

As always a great way to walk and talk with new and existing members of the staaake community.

For other Power Walks and events check out the schedule here and sign-up: https://lu.ma/staaake).

Key takeaways:

• Weekly power walk for Creators, Founders and anybody who wants to make new friends!
• Great conversations with very interesting people
• Getting your 6,000 steps in
• Become part of a great community with its own WhatsApp group when you attend the walk

LinkedIn Post

Check this out:

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

And you can now subscribe to the Informationbanker YouTube channel here: https://www.youtube.com/@Informationbanker/featured

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