Banking on Disruption Daily

BNY Partners with OpenAI, Betterment Acquires Ellevest's Automated Investing Business, & Jonathan McKernan Faces Tough Questioning During his CFPB Confirmation Hearing

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We discuss the recent partnership between BNY, the United States' oldest bank, and OpenAI, which aims to incorporate artificial intelligence into BNY's operations to enhance efficiency and streamline complex workflows. Additionally, we delve into the implications of Jonathan McKernan's confirmation hearing for the Consumer Financial Protection Bureau, where he faced rigorous questioning regarding the agency's mandate and its adherence to statutory authority. Furthermore, we examine Betterment's acquisition of Ellevest's automated investing business, a strategic move that will transfer significant assets and accounts by April 2025, while Ellevest continues to focus on wealth management for high-net-worth clients. Our exploration also reveals insights into consumer preferences for co-branded credit cards, highlighting the contrasting motivations of financially stable and struggling individuals. These developments collectively underscore the evolving landscape of the financial services sector and the regulatory environment that governs it.

Takeaways:

  • BNY has forged a strategic partnership with OpenAI to integrate artificial intelligence into its banking operations, thereby enhancing efficiency.
  • Betterment's acquisition of Ellevest's automated investing business indicates a significant market consolidation in the digital financial advisory sector.
  • During the CFPB confirmation hearing, Jonathan McKernan faced intense scrutiny regarding the agency's regulatory authority and accountability measures.
  • The CFPB's decision to withdraw lawsuits initiated during the Biden administration suggests a potential shift in regulatory priorities and strategies.
  • Consumer preferences reveal that financially stable individuals show a strong inclination towards co-branded credit cards, emphasizing rewards linked to everyday spending.
  • The collaboration between BNY and OpenAI aims to streamline workflows, reflecting a broader trend of embracing technology within financial institutions.

Companies mentioned in this episode:

  • BNY
  • OpenAI
  • Betterment
  • Ellevest
  • Capital One
  • Rocket companies
  • Alkami Technology
  • MANTL
  • Segment
  • Elevest

...more
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Banking on Disruption DailyBy Fred E. Cadena