Hello Subscriber, welcome to Codestories Newsletter!

Have you ever considered how much money you pay to use money? Using your card on holiday can lead to over 5% in fees, which either you or the merchant must cover.

Financial services are similar to petrol in the 20th-century economy; the cheaper they become, the more they help economic growth. Additionally, they offer convenience.

In an effort to enhance both convenience and the cost-effectiveness of payments, authorities are promoting competition in the financial services sector. If you've ever come across terms like PSD2, Open Finance, or Banking-as-a-Service, these are prime examples of initiatives working to shift the financial industry from an OPEC-style oligopoly to an open digital sandbox.

This seismic shift in the world of finance presents both opportunities (e.g., retail companies integrating financial services into their offerings) and challenges (such as cybersecurity and compliance).

Today, I've curated some stories for you that offer a glimpse into the inner workings of the transforming financial industry. Given that it's the holiday season, I've included some thrilling crime stories, as well as updates from the tech world and several practical tips.

🌟 Highlights

Threats and Challenges Related to AI in Finance

It's balanced, witty and not over optimistic, so I say you may want to read it even if overwhelmed with #AI buzz.

Will FED’s New Solution Revolutionize Payments in the US?

FED, the US banking supervisor in introducing FEDNow, a new network allowing for instant payments in the US. Two years ago, PIX, a similar solution introduced by the Bank of Brazil, revolutionized payments in the biggest LATAM economy. Will this repeat in the US?

Revolut Just Lost 20M to Theft – And Why Isn’t a Lot 

This one is a story of record high bank thefts, which I wrote to comment on the recent Revolts 20M blunder. Scary, but there are some lessons to take.

ℹ️ News

Shouldn’t the knowledge be for free?

Biden axes some student debts in the US (but not as much as expected).

Just a few months after most of the economists announced apocalyptic recession in the US (here) seems there might be hardly any. Is the US economy heading for a soft-landing? Read more.

Would you tap your friend's iPhone? As Apple expands tap-to-pay to the UK, many wonder – how will that change our payment habits (and PoS card terminal business)? 

📌 Must Reads

How will the Metaverse change our lives?

350-year-old bank believes in Metaverse future. Can you still be skeptical? 

McKinsey about the money in Generative AI

They took a first look at where business value could accrue and the potential impacts on the workforce.

Banks becoming API providers (Banking-as-a-service) is one of the fastest growing areas of banking business. McKinsey estimates this one could be worth up to 100 B USD by 2030 (TAM). The driver for this would be other industries (mostly retail) embedding payments and financial services.  
Recently, Vodeno published one of the best reports on the subject.

💡 Tips & Tricks

Spending While You’re Abroad – All You Need To Know

Planning to use foreign currencies this summer? This could save you some money.

🔥 Netguru recommendations

If you haven't seen Paweł's presentation during Burning Minds, our annual conference, here you can find the video. It will be a story on what drives transformation and change in the financial industry but shared from the perspective of the future users. Paweł has tested a similar story on an audience in Saudi Arabia and it resonated well.

Sincerely,
Codestories Team