Fintech News Issue #178 August 9th, 2018

Shout-out to all those people in big banks actually getting $h!t done! A much needed reality check about blockchain and Europe as a fintech hub. Enjoy yet another issue of your weekly fintech news summary. – Michael and the FinTech Weekly team

Top Stories

    There’s an old saying: The reason God was able to create the earth in 6 days and rest on the 7th is because they didn’t have millions of customers and legacy systems. That said, millions of customers and legacy systems can lead to some odd practices that never get questioned.

    Blockchain is often upheld as a disruptive revolution that will dramatically change the way we conduct transactions on the internet. Its rise has generated somewhat of a ‘buzz’ throughout the technological landscape and many claim it will transform the financial industry and potentially the world.

    A number of technologies and new regulations are poised to disrupt the incumbent financial system. So much so that the emerging field of financial technologies has earned itself the "fintech'" portmanteau. The term "financial institution" no longer evokes visions of a centuries-old, technophobic business, but of an increasingly wide range of startups and partnerships that aim to turbocharge banking and investments on a rapidly evolving playing field.

FinTech Articles

    If no other Facebook FB +4.46%-related privacy issue hasn't made you leave the social platform in disgust, perhaps the notion of Facebook become bosom buddies with your financial institution will. Probably not. You've made it quite clear you have no intention of quitting Facebook. What's a bit more data surrendered at this point? Facebook already knows everything else about you, it may as well be privy to the intimacies of your financial transaction data as well right?

    The combination of new marketing technologies and the ability to access and leverage real-time data allows financial marketers the opportunity to create personalization — at scale — for each individual at the right time, and with the right message.

    Artificial intelligence (AI) is one of the most commonly referenced terms by financial institutions (FIs) and payments firms when describing their vision for the future of financial services.

    The chief of New York's financial regulatory body said Tuesday that the agency is "fiercely opposed" to the U.S. Treasury Department's recent endorsement of regulatory "sandboxes" for fintech firms

    The Treasury Department and the Office of the Comptroller of the Currency both released major documents recently providing guidance on banking innovation, increased controls on the use and sharing of consumer data, and the potential for a new charter for financial technology firms (through the OCC). The response to these proposals varied from enthusiastic endorsement to confusion and rejection of some components of the recommendations.

    Banks planning technology improvements should heed a warning about fintech vendors: Their industry is in a state of churn.

    Our world is full of untapped real-world assets. From real estate, gold reserves, fine art to agriculture, tangible items have been difficult to subdivide or physically transfer. So investors have traded these assets on paper, which is slow, complicated and expensive. These trades are also more difficult to track due to the regulatory nature of paper transactions, especially when it involves cross-border legislation.

    The UK's Financial Conduct Authority has collaborated with 11 regulatory bodies from Europe, the Far East and the US on the creation of a Global Financial Innovation Network (GFIN), building on proposales earlier this year to create a cross-jurisidctional fintech sandbox.

    Most financial institutions are already using different technologies to reduce costs and increase efficiency. The real payoff, however, may be in the revenue growth benefits, and the ways automation can improve the customer experience.

    The number of mobile payments users who tap to pay using a contactless payment solution provided by their mobile device’s maker will grow to 450 million people worldwide by 2020, according to a new forecast from Juniper Research.

    The news that the G20, the grouping of leading economies of the world, has decided to start monitoring virtual currencies has put some cryptocurrency enthusiasts in a spin.

    Technological changes will almost always precede cultural adjustments within an organization. To succeed, banks and credit unions must support the elimination of silos, be willing to embrace risk, and have an obsessive focus on the needs of the consumer.

    Demanding customers. Rising costs. Security threats. As we embark on a digital revolution, banking is becoming a competitive battlefield where only the most efficient, adaptive and inventive survive. And one of the biggest weapons in our arsenal is the chatbot.

    There was a moment, a few years ago, when bankers started talking about our ecosystem. That time was heady with the scent of possibility. The word suggested an open acceptance of connections, dependencies and a food chain where we may not all be friends but we all play a part.

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