Facebook taps banks, but for chatbots not purchase data like Google

Facebook taps banks, but for chatbots not purchase data like Google

Backlash swelled this morning after Facebook’s aspirations in financial services were blown out of proportion by a Wall Street Journal report that neglected how the social network already works with banks. Facebook spokesperson Elisabeth Diana tells TechCrunch it’s not asking for credit card transaction data from banks and it’s not interested in building a dedicated banking feature where you could interact with your accounts. It also says its work with banks isn’t to gather data to power ad targeting, or even personalize content such as which Marketplace products you see based on what you buy elsewhere.

Instead, Facebook already lets Citibank customers in Singapore connect their accounts so they can ping their bank’s Messenger chatbot to check their balance, report fraud or get customer service’s help if they’re locked out of their account without having to wait on hold on the phone. That chatbot integration, which has no humans on the other end to limit privacy risks, was announced last year and launched this March. Facebook works with PayPal in more than 40 countries to let users get receipts via Messenger for their purchases.

Expansions of these partnerships to more financial services providers could boost usage of Messenger by increasing its convenience — and make it more of a centralized utility akin to China’s WeChat. But Facebook’s relationships with banks in the current form aren’t likely to produce a steep change in ad targeting power that warrants significant heightening of its earning expectations. The reality of today’s news is out of step with the 3.5 percent share price climb triggered by the WSJ’s report.

“A recent Wall Street Journal story implies incorrectly that we are actively asking financial services companies for financial transaction data – this is not true. Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management. Account linking enables people to receive real-time updates in Facebook Messenger where people can keep track of their transaction data like account balances, receipts, and shipping updates,” Diana told TechCrunch. “The idea is that messaging with a bank can be better than waiting on hold over the phone – and it’s completely opt-in. We’re not using this information beyond enabling these types of experiences – not for advertising or anything else. A critical part of these partnerships is keeping people’s information safe and secure.”

Diana says banks and credit card companies have also approached it about potential partnerships, not just the other way around as the WSJ reports. She says any features that come from those talks would be opt-in, rather than happening behind users’ backs. The spokesperson stressed these integrations would only be built if they could be privacy safe. For example, signing up to use the Citibank Messenger chatbot requires two-factor authentication through your phone.

But renewed interest in Facebook’s dealings with banks comes at a time when many are pointing to its poor track record with privacy following the Cambridge Analytica scandal, where people were duped into volunteering the personal info of them and their friends. Facebook hasn’t had a big traditional data breach where data was outright stolen, as has befallen LinkedIn, eBay, Yahoo [part of TechCrunch’s parent company] and others. But users are rightfully reluctant to see Facebook ingest any more of their sensitive data for fear it could leak or be misused.

Facebook has recently cracked down on the use of data brokers that suck in public and purchased data sets for ad targeting. It no longer lets data brokers upload Managed Custom Audience lists of user contact info or power Partner Categories for targeting ads based on interests. It also more adamantly demands that advertisers have the consent of users whose email addresses or phone numbers they upload for Custom Audience targeting, though Facebook does little to verify that consent and advertisers could still buy data sets from brokers and upload them themselves

Facebook’s statement today shows more scruples than Google, which last year struck ad measurement data deals with data brokers that have access to 70 percent of credit and debit card transactions in the U.S. That led to a formal complaint to the FTC from the Electronic Privacy Information Center. [Correction: Google tells us the deals are for ad measurement data, not ad targeting as we originally published. It only learns the annonymous aggregate purchase value, not what the items were bought, and the data is encrypted.]

Cambridge Analytica has brought on an overdue era of scrutiny regarding privacy and how internet giants use our data. Practices that were overlooked, accepted as industry standard or seen as just the way business gets done are coming under fire. Internet users aren’t likely to escape ads, and some would rather have those they see be relevant thanks to deep targeting data. But the combination of our offline purchase behavior with our online identities seems to trigger uproar absent from sites using cookies to track our web browsing and buying.

Facebook’s probably better off backing away from anything that involves sensitive data like checking account balances until Cambridge Analytica blows over and it’s proven its newfound sense of responsibility translates into a safer social networking. But at least for now, it’s not slurping up our banking data wholesale.

Source: Mobile – Techcruch

N26 launches a revised metal card

N26 launches a revised metal card

Fintech startup N26 is updating its N26 Metal product and launching it tomorrow. You might remember that the company first announced its premium card at TechCrunch Disrupt Berlin in December 2017. Shortly after the conference, the card was available in early access for existing N26 Black customers.

But the company had to go back to the drawing board and update the card design. N26 Metal customers had some complaints about the design of the card in particular.

While the original metal card was primarily made of a sheet of tungsten, the metallic part was still surrounded by plastic. Customers complained about scratches and the overall feel of the card.

It didn’t really feel like a metal card. It was more or less a heavy plastic card with a metal core. You could easily get scratches and the MasterCard logo was just a sticker.

Even more surprising, some customers had some issues going through airport security because tungsten was an uncommon material.

At an event in Berlin, the company announced a revised version of N26 Metal. The front of the card is going to be made out of actual metal. The MasterCard logo will be engraved. And the name of the customer is moving to the back of the card.

You can join the waiting list now and customers will start getting the new metal card tomorrow. Everybody will be able to sign up next Tuesday.

But N26 Metal isn’t just a fancy card. For around €15 per month, you get all the advantages of N26 Black as well as partner offerings.

These offerings include the basic $45 per month WeWork subscription so that you can access a WeWork office for free for one day per month and pay for extra days. You also get 10 percent off hotel bookings on Hotels.com, promo codes for Drivy, Babbel and other services. The company says that there will be new offerings in the coming months.

Source: Mobile – Techcruch

Meet the speakers at The Europas, and get your ticket free (July 3, London)

Meet the speakers at The Europas, and get your ticket free (July 3, London)
Excited to announce that this year’s The Europas Unconference & Awards is shaping up! Our half day Unconference kicks off on 3 July, 2018 at The Brewery in the heart of London’s “Tech City” area, followed by our startup awards dinner and fantastic party and celebration of European startups!
The event is run in partnership with TechCrunch, the official media partner. Attendees, nominees and winners will get deep discounts to TechCrunch Disrupt in Berlin, later this year.
The Europas Awards are based on voting by expert judges and the industry itself. But key to the daytime is all the speakers and invited guests. There’s no “off-limits speaker room” at The Europas, so attendees can mingle easily with VIPs and speakers.
What exactly is an Unconference? We’re dispensing with the lectures and going straight to the deep-dives, where you’ll get a front row seat with Europe’s leading investors, founders and thought leaders to discuss and debate the most urgent issues, challenges and opportunities. Up close and personal! And, crucially, a few feet away from handing over a business card. The Unconference is focused into zones including AI, Fintech, Mobility, Startups, Society, and Enterprise and Crypto / Blockchain.
We’ve confirmed 10 new speakers including:

Eileen Burbidge, Passion Capital

Carlos Eduardo Espinal, Seedcamp

Richard Muirhead, Fabric Ventures

Sitar Teli, Connect Ventures

Nancy Fechnay, Blockchain Technologist + Angel

George McDonaugh, KR1

Candice Lo, Blossom Capital

Scott Sage, Crane Venture Partners

Andrei Brasoveanu, Accel

Tina Baker, Jag Shaw Baker
How To Get Your Ticket For FREE
We’d love for you to ask your friends to join us at The Europas – and we’ve got a special way to thank you for sharing.
Your friend will enjoy a 15% discount off the price of their ticket with your code, and you’ll get 15% off the price of YOUR ticket.
That’s right, we will refund you 15% off the cost of your ticket automatically when your friend purchases a Europas ticket.
So you can grab tickets here.
Vote for your Favourite Startups
Public Voting is still humming along. Please remember to vote for your favourite startups!
Awards by category:
Hottest Media/Entertainment Startup
Hottest E-commerce/Retail Startup
Hottest Education Startup
Hottest Startup Accelerator
Hottest Marketing/AdTech Startup
Hottest Games Startup
Hottest Mobile Startup
Hottest FinTech Startup
Hottest Enterprise, SaaS or B2B Startup
Hottest Hardware Startup
Hottest Platform Economy / Marketplace
Hottest Health Startup
Hottest Cyber Security Startup
Hottest Travel Startup
Hottest Internet of Things Startup
Hottest Technology Innovation
Hottest FashionTech Startup
Hottest Tech For Good
Hottest A.I. Startup
Fastest Rising Startup Of The Year
Hottest GreenTech Startup of The Year
Hottest Startup Founders
Hottest CEO of the Year
Best Angel/Seed Investor of the Year
Hottest VC Investor of the Year
Hottest Blockchain/Crypto Startup Founder(s)
Hottest Blockchain Protocol Project
Hottest Blockchain DApp
Hottest Corporate Blockchain Project
Hottest Blockchain Investor
Hottest Blockchain ICO (Europe)
Hottest Financial Crypto Project
Hottest Blockchain for Good Project
Hottest Blockchain Identity Project
Hall Of Fame Award – Awarded to a long-term player in Europe
The Europas Grand Prix Award (to be decided from winners)
The Awards celebrates the most forward thinking and innovative tech & blockchain startups across over some 30+ categories.
Startups can apply for an award or be nominated by anyone, including our judges. It is free to enter or be nominated.
What is The Europas?
Instead of thousands and thousands of people, think of a great summer event with 1,000 of the most interesting and useful people in the industry, including key investors and leading entrepreneurs.

• No secret VIP rooms, which means you get to interact with the Speakers
• Key Founders and investors speaking; featured attendees invited to just network
• Expert speeches, discussions, and Q&A directly from the main stage
• Intimate “breakout” sessions with key players on vertical topics
• The opportunity to meet almost everyone in those small groups, super-charging your networking
• Journalists from major tech titles, newspapers and business broadcasters
• A parallel Founders-only track geared towards fund-raising and hyper-networking

• A stunning awards dinner and party which honors both the hottest startups and the leading lights in the European startup scene
• All on one day to maximise your time in London. And it’s PROBABLY sunny!

That’s just the beginning. There’s more to come…

Interested in sponsoring the Europas or hosting a table at the awards? Or purchasing a table for 10 or 12 guest or a half table for 5 guests? Get in touch with:
Petra Johansson
[email protected]
Phone: +44 (0) 20 3239 9325

Source: Gadgets – techcrunch

DFS Lab is helping the developing world bootstrap itself with fintech

DFS Lab is helping the developing world bootstrap itself with fintech

Entrepreneurs have it rough in Africa, India, Pakistan — places where VC cash doesn’t fall from the sky and necessary infrastructure like reliable banking and broadband can be hard to come by. But companies grow and thrive nevertheless in these rugged environments, and DFS Lab is an incubator focused on connecting them with the resources they need to go global.

The company was founded, and funded, on the back of a $4.8 million grant from the Gates Foundation, which of course is deeply concerned with tech-based solutions for well-being all over the world. Its name, Digital Financial Services Lab, indicates its area of focus: fintech. And anyone can tell you that sub-Saharan Africa is one of the most interesting places in the world for that.

This week DFS Lab is announcing a handful of new investments — modest ones on the scale companies are used to in Silicon Valley, but the money is only a small part of the equation. Investment comes at the end of a longer process, the most valuable of which may be the week-long sprint DFS Lab does on the ground, helping solidify ideas into products, or niche products into products at scale.

The relative lack of VCs and angel investors puts early-stage companies at risk and can discourage the most motivated entrepreneur, so the program is aimed at getting them over the hump and connected to a network of peers.

The latest round puts a total of $200,000 into four startups, each touching on a different aspect of a region or vertical’s financial needs. All, however, are largely driven by the massive growth of mobile money in Africa over the last decade and the more recent, ongoing transition to modern smartphones and the app/data landscape familiar to the U.S. and Europe.

  • Nala aims to move p2p payments away from the antiquated but widely used USSD system (more on this later) to a Venmo-like app interface that integrates multiple native mobile currencies like M-Pesa into a single tool.
  • Cherehani connects female entrepreneurs with financial resources; the idea is to provide both much-needed credit and financial literacy at as early an age as possible. (They have a chatbot too, naturally.)
  • Nobuntu is a platform through which South Africans can open and contribute to pension plans via mobile money, simply and with low overhead costs.

The fourth company is choosing to remain in stealth mode for now, but you see the general theme here.

For one reason or another there are major gaps in everyday services that many of us take for granted — the ability to prove one’s identity, for example, is critical but commonly absent. I talked with Paul Damalie, founder of a DFS-funded company called Inclusive that helps address that particular shortcoming.

Basic ID verification can be difficult when you remove many of the things we take for granted. So when, for example, someone wanted to get a loan, a savings account, or some other basic financial service, “Originally you’d have to literally walk into the bank to do it,” Damalie said. Needless to say that isn’t always convenient, and banks as well as users want better options.

“We’ve been collecting existing databases and building a layer of rich access around it,” he continued. “Now we can use facial recognition to check those details. Once you have the ID, you need to check it with the government records” — which Inclusive also does. A range of other data creates a confidence score in the person’s identity, helping avoid identity fraud.

Another opportunity arises not from these gaps but from the unique ways in which the African ecosystem has evolved. USSD, which I mentioned before, is probably unknown to many of our readers — it certainly was to me. But it’s become a standard tool used regularly by millions for important tasks in Africa; if you want to work in that market, you have to deal with USSD one way or another.

The problem is that, as you might guess from Nala trying to deprecate it, USSD is a technology dating back to the ’90s, a text-based interface that’s rudimentary but, much like SMS, universally accepted and intelligible. The importance of cross-platform compatibility in mobile markets as fragmented as these can’t be overstated.

So bridging the gap between USSD and a “traditional” (as we might call it) payment app is a unique opportunity, and one a company called Hover (also in the DFS Lab portfolio) is addressing. Its tech acts as a sort of translation layer between USSD and smartphone app interfaces, allowing for modern app design but also deep back-compatibility. It’s an opportunity specific to this time and this area of the world, but nevertheless one that may end up touching millions.

And from the narrowness of its vision that DFS Lab derives its effectiveness.

“They’re one of the most specialized accelerators in the world,” said Damalie. “It goes beyond just funding — it involves having the right kind of network: access to partners, data, sources across the continent. They had context-relevant fellows, people who had very specific challenges.”

“The grant was useful and let us build a proof of concept, and of course the Gates Foundation gives us credibility. But they were taking bets on us as individuals.”

Although DFS Lab has heretofore been funded by the Gates infusion, that well will run dry soon. Jake Kendall, DFS Lab’s executive director, indicated that the plan is to move towards a more traditional investor fund. They already focus on profitability and the potential for growth to the continental stage or beyond; this isn’t a charity but tactical investment in such a way that social good is a necessary byproduct.

“The best way to have a global impact is to be self-sustaining,” he said.

Source: Mobile – Techcruch