Fintech News Issue #204 February 14th, 2019

8 trends the banking industry must act on, why VCs love fintech, webinars, events close to you and the most important developments to keep you posted on what's happening in the industry. Enjoy! – Michael and the Fintech Weekly team

Top Stories

    2019 will not be a continuation of the past with banking technology. But which technology trends will matter most in the months and years ahead? Big data and AI? The cloud? Digital-only banks? The answer is critical because ignoring these trends now will make it more difficult than ever for complacent banks and credit unions to catch up.

    Fintechs are getting a large infusion of venture capital. In 2018, U.S. fintechs raised almost $12 billion from VC firms, a surge of 120% from 2017. Leading the trend are a handful of startups that have managed to attract millions.

    In an industry that’s increasingly competitive on cost, digital technologies are providing today’s carriers with new ways of setting themselves apart from the pack.
    Successfully implementing digital claims will unlock and enable better claims processes, drive innovation and deliver the strategic value of claims to the organization.

FinTech Articles

    More than three-quarters (80%) of bankers believe challenger banks are an increased threat to their business, while almost one-third (30%) believe they will be the single most disruptive threat in 2019.

    Open banking regulatory environment, along with the changing consumer patterns and fintech firms, encourage banks to embrace digital transformation for more profitable operations.

    Somewhere, a banker sits in his office, shoulders slumped, looking at the newest report about how many consumers have turned to digital-only finance — and how many more branches his bank will need to close.

    As the Head of Technology Transformation for Consumer & Community Banking Technology at JPMorgan Chase, Sonia Wedrychowicz is helping to lead the digital transformation efforts that impact one of the largest banks in the world.

    The pitfalls of cryptocurrencies have once again been laid bare, with the news that Canada’s largest cryptocurrency exchange, Quadriga, has applied for creditor protection having been brought to a standstill following the sudden death of its young founder, Gerald Cotton.

    While financial institutions are still in the early stages of adopting AI technologies, intelligent machines are expected to become the most defining for the future of institutions in the financial services and insurance industries.

    The war for fintech dominance in the consumer market is still waging, but a new battle line is forming as they set their sights on small businesses.

    With the need to invest in digital technologies and advanced analytics and reduce fixed costs, are the majority of financial institutions too small to succeed in the digital future? The announced combination of BB&T and SunTrust brings this issue front and center. Will other combinations of large regional banks follow this trend?

    Investment into the UK's blossoming fintech sector broke records last year, as the country's startups reached a new stage in their growth journey.

    An onslaught of so-called "challenger banks" continues to disrupt the competitive landscape in the financial services sector. Also known as "neobanks", these digital-first players are aggressive, app-driven, CX-obsessed upstarts looking to tear up the banking industry.

    In 2017, Societe Generale launched a global intrapreneurship programme called the Internal Startup Call. The objective was to enable disruptive internal projects to emerge that lay the foundations for future products and services by empowering SG’s intrapreneurs.

    The financial picture for Americans over 50 looks far different than it did a generation ago, leaving low- to moderate-income (LMI) Americans especially vulnerable as they age. Using data from the U.S. Financial Health Pulse, CFSI identifies five challenges for the LMI 50+ and opportunities for providers to support this fast-growing segment.

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