I was asked this week – what’s the biggest change that’s about to happen in banking. To me it’s data. How we use and what we achieve with it. Banks have moved from one-to-one (teller and a customer) to a one-to-many relationship (online portals, self-service) but smart use of data can enable us to reestablish personalised services and bring back customised one-to-one relationship between the bank and the customer with help with bots, machine learning, and adaptive technologies. Further, the upcoming PSD2 (and UK equivalent) will alter how the data is stored and used. Nailing this (data) step is essential to progress towards the banking-as-a-platform model, which is the future of finance.
Are Blockchain Patents a Bad Idea?
By Jeff John Roberts
A future fight for control of potentially important technology for banks and other big industries. Blockchain is at a crossroads. On one hand, the technology, which promises to revolutionize record-keeping in businesses like banking and farming, is more open than ever with firms including Chain and R3 saying they would make their blockchain software code open to the public. But there is another force at work that could close off access to the technology. That force comes in the form of patents as big banks and others file applications that seek 20-year monopolies over various aspects of blockchain.
Has The Blockchain Hype Finally Peaked?
By Financial Times
Is the hype around a blockchain for financial markets finally over? Sober reality bites on automating networks of trust on which modern finance rests. It has turned out that Silicon Valley’s breezy idea of combining its peer-to-peer computing ethos with that of the money management practices of Wall Street is hard to do. Automating the networks of trust on which modern finance sits has proven complicated. Some have taken comfort in the “Hype Cycle” developed by research firm Gartner a decade ago to describe the trajectory of the average technology. Early executive and investor enthusiasm hits a peak of inflated expectations and is brought crashing to earth. Once through a trough of disillusionment does enlightenment arrive, and the technology becomes useful.
Banks Don’t Understand Their Customers
By Jim Marous
As the banking industry responds to the “Age of the Individual”, big data and advanced analytics will define the winners from the losers. It is critical for banks and credit unions to deliver on the personalization promise. Banking organizations are making some progress towards harnessing consumer insight to enhance the customer experience and to boost overall profitability, but there is still a long way to go. Although consumers prefer a personalized approach, most financial institutions seem to understand their expectations, but can’t meet these expectations as they’re faced by various challenges. For instance, most are unable to offer products or solutions in real time.
Why FinTech and Why Now?
By Evans Munyuki
There is no denying that technological innovation is an evolutionary force in business, politics and even culture; in the industry of finance, it is driving capital, captivating attention and connecting us more efficiently to our institutions, to our communities and to each other. In my experience and in my line of work, you either harness innovation to your benefit (or to the advantage of your customers or company) or else you get left behind. Due to the realization that we now share that FinTech is not a bubble about to burst nor is at the forefront of some dynamic upswing. It is inherently disruptive to the status quo of access, inclusion and interaction with the financial marketplace, driving emerging market development and from it, competition.
Also published on Medium.