This week in fintech: IBM’s supercomputer tackles insider trading, billionaires start socially conscious investing, and the CFPB sides against big banks who hoard your data.
Watson and Financial Regulation: It knows their methods (The Economist)
Ever since developing the first ATM, IBM has been automating financial institutions. Now, the company’s supercomputer, known as IBM Watson, is learning to automate compliance back-offices, using artificial intelligence to catch insider trading and money laundering before it happens.
Investing’s Crowded Conscience (Bloomberg Gadfly)
On a grand scale, nobody has quite figured out how to get millennials to invest. Now, one of the most famous billionaire hedge fund managers is giving it a go. Paul Tudor Jones has announced he’s building an index of the most socially responsible companies, and will eventually issue an ETF that tracks the index.
Cordray ‘Gravely Concerned’ by Attempts to Obstruct Screen Scraping (American Banker)
The CFPB is supporting fintech companies who rely on gathering bank information from their customers. Technically, your bank, not you, owns your data. However, the CFPB has finally taken a side, saying “consumers should be able to access [their data] and give their permission for third-party companies as well.” In other words, back off, Jamie Dimon.