FinTech News Issue #113 Thursday, April 13th 2017 02:21PM

The Next Generation of the Internet The first 40 years of the Internet brought e-mail, social media, mobile applications, online shopping, Big Data, Open Data, cloud computing, and the Internet of Things. Information technology is at the heart of everything today—good and bad. Despite advances in privacy, security, and inclusion, one thing is still missing from the Internet: Trust. Enter the blockchain.

We are all familiar with taking a wrong turn or missing a turn altogether while driving and have the GPS navigation system holler at us about recalculating the distance and then suggesting an alternative route. Might that have sounded a little fanciful in the 1980s when people were still relying on printed maps to navigate?

Financial institutions are challenged with innovating a century-old service model. The metamorphosis has been slowed by the dual weight of digital transformation and the broader implications of ever-evolving customers.

Rather than lose revenues, banking organizations are increasing their collaboration with fintech firms in addition to considering the use of corporate venture capital for purchasing financial start-ups. This comes at a time when returns on investment in innovation are being challenged.

Over the past few years, we've come to realize that lending is no longer constrained to the doors and floors of a bank. Now, with the power of digital platforms, we can lend and borrow through online companies at the swipe of a smartphone. This freedom has significantly impacted the lending and banking as industries, most notably the ability of individuals to obtain loan products.

Businesses are gradually understanding the importance and benefits of machine-learning technology. Self-made billionaire Mark Cuban has boldly claimed that the “the world’s first trillionaire will be an AI entrepreneur.” He goes on to say that faster computer processers and large data sets have the ability to push AI into a wealth of industries and services.

“The cloud.” It’s part of the modern lexicon, but what is it, exactly?

By establishing analytics as a true business discipline, banks can grasp the enormous potential.

Over the past decade or so, the workforce in the United States has been going through some major changes. One of the most significant of these changes has been the rise in popularity of freelancing.

Banks and credit unions are evaluating the options of building new business solutions using open banking APIs. Innovation options are vast, with the decisions made today having a significant impact on future success.

As online consumer lending is becoming increasingly pervasive, demand grows for technology that enables consumers to access financial services from anywhere quickly and easily.

A number of financial institutions have already adopted AR and the technology could potentially change the way we view the world.

The digital wallet revolution has not have lived up to its expectations -- yet. According to Gallup, just 13 percent of smartphone owners have a digital wallet app, while the majority of those who do have an app (76 percent), rarely use it.

PwC says the financial services establishment has moved from viewing fintech startups as an amusing aside to seeing them as crucial collaborators, with a huge proportion hoping to partner with new innovators in the future.

Today, financial institutions face two major challenges. First, the large volume of highly sensitive information they process, such as credit card data, Social Security numbers and personal identifiers, is highly attractive bait for attackers. Second, financial organizations in the U.S. are supervised by many agencies...

On the tnsurtech front, artificial intelligence – in combination with the Internet of Things – is where the money is these days.

No one really knows how the most advanced algorithms do what they do. That could be a problem.

Imagine driving through toll booths, drive thru restaurants and gas stations without having to fiddle around with cash and coins.