Banking on Disruption: Octane’s $50M Series E, Banks Dive into BNPL, CIBC Expands AI Team, JPMorgan Chase’s Surprising Branch Strategy

Banking on Disruption Daily

Welcome to Banking on Disruption Daily for Wednesday, August 7th, 2024. I'm Fred Cadena. First up today, US fintech Octane has secured a $50 million Series E funding round, exclusively from existing backers led by Valar Ventures and Upper90. Founded in 2014, Octane serves the powersports market and plans to use the new funds for market expansion and product development. In other fintech news, traditional banks are delving into the buy now, pay later (BNPL) market to attract Gen Z. Consumer spending on BNPL transactions soared to $17 billion during the holiday season. Banks like U.S. Bank are launching BNPL services to compete with digital-native FinTechs, leveraging established trust, extensive data, and robust fraud protection. Next, CIBC is set to hire over 200 data and AI professionals within the next year to enhance its AI capabilities and client-focused strategy. New hires will focus on developing resilient AI solutions across the bank, improving AI governance, customer experience, and internal interactions. And finally, JPMorgan Chase is increasing branch locations to reach smaller towns and cities, defying the digital age trend. The bank plans to open at least 25 new branches in Iowa alone, aiming for a significant physical presence across all 48 continental states. That's all for today! Thanks for tuning in to Banking on Disruption Daily. Until tomorrow, this is Fred Cadena wishing you success in your digital pursuits.