As Umberto Eco once said “You can not make a spoon that’s better than a spoon”. We are so clung onto an idea of FinTechs replacing banks. They won’t. We need banks and you can’t make a better bank than a bank. In my eyes bank’s main responsibility is to protect our documents and money, everything else is an add-on. These add-on services are what we can disrupt and improve, or encourage banks themselves to improve them. Money-transfer is a great example, you can do it outside bank; cheaper and better. Banks won’t disappear but they may change their face drastically over the next decade by losing some services, drastically altering others and, possibly, creating new ones.
Have a fantastic week,
Counting Down to the Bank of Facebook
By Lionel Laurent and Leila Abboud
The biggest risk comes when technology heavyweights like Google, Apple or Amazon really start to zero in on their business. These tech giants are relentlessly innovative, and their reach — Facebook alone boasts 1.65 billion monthly users — and grip on customers’ personal data is virtually unparalleled. For now, the tech giants have barely scratched the surface. Apple and Google have mobile payment tools, Facebook users can send money to friends through Messenger and Amazon is pitching student loans in partnership with Wells Fargo, but they’re not exactly setting the financial world on fire. Their Asian cousins are more advanced: WeChat and Tencent can now be used to pay for everything from rent to a taxi, and Alibaba runs mutual funds.
A Seven Year Old Idea Comes of Age: Bank-as-a-Service
By Chris Skinner
Bank-as-a-Service is an idea came from and point to banks opportunities to grow business by releasing more of their capabilities as APIs, as software, as apps, as widgets … as anything that can plug-and-play into anything else. Part of this is that it’s not just banks’ products, processes and designs that should plug-and-play, but we should be able to plug-and-play any other services into the BaaS model, such as Stripe, PayPal, Fidor, Moven or any other APIs, apps and analytics we want.
Ethereum’s Two Ethereums Explained
By Alyssa Hertig
What started as an attempt to rescue investor funds in a high-profile project has resulted in a schism that has effectively split the community on the second-largest public blockchain. There are now two slightly different versions of this platform available to users – ethereum, the ‘official’ version of the blockchain maintained by its original developers, and ethereum classic, an ‘alternative’ blockchain maintained by a wholly new team. Now that it’s happened though, and ethereum classic exists, the community has tons of questions. These include whether hard forking the blockchain, or rewriting the code to reverse transactions without near-unanimous consensus, is worth the risk, and if ethereum developers forked again to solve a similar problem, would it split again? Either way, it’s not clear if the rise of ethereum classic is a bad thing for the technology. The protest blockchain gave the minority a chance to build their own system, and some people think it’s an exciting development.
What Is FinTech And Where Does It Live?
By Vinod Sharma
Fintech can manage your money automatically for betterment or wealthfront and not pay for investment advice that may or may not outperform the market. Fintech companies whose line of business combines software and technology to deliver financial services – will reshape and improve finance by cutting costs and expanding access to financial services. FinTech companies can create a more diverse and stable credit landscape by gathering data from social-media and other sources to assess the needs of young businesses and borrowers on the fringes of the banking system. To model the Fintech enterprise, its better use a method rather than make things up on the go. A method guarantees results and increases the productivity, predictability, repeatability and reliability of the business modelling and transformation. Most of the FinTech companies wins on the principal of “The ability to relate to people, to inspire and motivate them is what you must ever work on as a leader”.
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