Fintech News Issue #174 July 5th, 2018

Another week has passed, another fintech news roundup is here. Enjoy! – Michael and the FinTech Weekly team

Top Stories

    Many observers try to build analogies between the transformation of banking and the demise of Kodak, Blockbuster, Borders and the taxi industry. Comparison illustrate differences in each instance, but emphasize the importance of not being complacent regarding consumer expectations and innovation.

    As banks compete simultaneously with traditional peers, financial technology upstarts and big technology players such as Amazon, the industrywide mantra is that they must become technology companies to survive.

FinTech Articles

    [SPONSORED] The successful candidate will be an internationally recognised researcher in the field of data, risk, and innovation and/or financial services at the University of Luxembourg. S/he will be motivated not only by scientific standing, but also by the Chair’s interdisciplinary approach; the Chair will play a pivotal role in linking technical research and developments with economic, financial and regulatory innovations, while also reaching out to key stakeholders in government (ministries, regulators, government-run start-up incubators) and to companies in the financial service sector.

    Implementing new technology can often be met with skepticism. Why fix something that isn’t broken?

    There’s more than one way to gain exposure to blockchain innovation. Beyond buying over-the-counter products or investing directly in blockchain startups some of the largest public companies in the world are already dabbling in the tech.

    In the first five years of the Guide to Financial Marketing report, the priorities had not changed significantly. In 2018, we saw some changes in priorities that are counter to what we believe is needed. The question remains – are today's financial marketers prepared for the future?

    I speak to a lot of banks and I get asked the same question: “How do I test my product ideas?” The secret is understanding how your customers measure value and align your proposition to their definition of success.

    As the cryptocurrency trend continues, buyers in real estate transactions have begun to express interest in financing their purchases using digital currencies like Bitcoin. Before agreeing to accept cryptocurrency as payment in these transactions, sellers should apprise themselves of the benefits of accepting digital currency as payment as well as the substantial risks involved.

    When did FinTech start? It’s hard to know for sure. Chris Skinner, the global FinTech pundit, heralds the beginning of FinTech with the launch of Zopa, a UK peer to peer lender started in 2005. It was the first time he had heard the word FinTech.

    Fintech leader Karen Contet Farzam spoke at Inspirefest 2018 about how much of a cashless society China has become and what the future holds.

    There is a correlation between an FI’s revenues and its digital strategy. A new report from advisory firm EY suggests that the more mature an FI’s digital strategy is, the more revenues it is likely to generate.

    In recent years most Fintech Hub reports have pegged the UK, and more specifically London, at the top of the list when it comes to ranking Fintech centers of excellence.

    All of us in innovation, transformation or digital jobs inside banks sit within strategic priority spaces. We are there because the executives and the board believe that what we represent is useful, vital or inevitable. The end result is we get hired.

    A major review of the banking sector by the financial regulator has warned that established banks have a "captive audience" of loyal customers who are losing out because they are reluctant to switch or shop around for financial products.

    LONDON (Reuters) - Banks saddled with bad loans risk being left behind by nimbler upstarts and Big Tech in the rapidly evolving fintech race, the European Union’s banking watchdog said on Tuesday.

    Nigeria’s financial inclusion aspiration of 80 percent by the year 2020 is failing. This assertion is based on the latest findings by the World Bank Global Findex and Intermedia. Measurement indicators published by both institutions agree that financial inclusion is on the decline — between 2014 and 2017, more people abandoned their bank accounts.

    Banks need to reconsider how best to provide their products to customers as a result of the changes anticipated in the age of Open Banking.

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