Making A Change With FinTech

Making Change FinTech

Making Change FinTech

Unfortunately, these days making (a) change stands for making money more often than for making a difference. When it comes to companies, the system is flawed, this behaviour is fuelled by the investor ecosystem who want a quick return and now stripping company’s objectives down to bare basics – profit. Become profitable ASAP (then more profitable) and then worry about everything else. But how many companies have worried about something else after their successful exits? Facebook is trying, so did Google but the majority didn’t. The scariest thing that only businesses used to operate like that, now, seemingly, governments are stripping down their objectives to basic economic performance discarding human values as a secondary priority. Let the invisible hand do the rest? I’m deeply concerned with this approach.

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Making a Difference with FinTech – Three Examples
By Elena Mesropyan

There is enough said about the scale of the FinTech industry, its inclusive agenda and massive surrounding ecosystem, but the real value of this industry is not in millions that are moving around in funding, expansion and acquisition deals. The value is measured in micro-processes, in the real, everyday difference FinTech startups make for small businesses and individuals. One of the most important hallmarks of the FinTech community is its focus on solving cumbersome operational problems, allowing business leaders to recalibrate resource allocation (talent, financial resources) to deliver value to their clients rather than to simply remain afloat in a highly competitive market.


The Passporting Gambit
By Pascal Bouvier

Apparently, Trump’s has suggested The US-UK passporting system and I quote the Telegraph: “A deal to reduce barriers between American and British banks through a new “passporting” system was considered by Mr Trump’s team…”. How easy would it be to build a financial services passporting system between the US and the UK. Fairly easy on the UK side given there is only one financial regulator, the FCA. Less so on the US side given we are dealing with several federal regulators (the OCC, the Federal Reserve, the FDIC, the CFPB, FinCen to name the main ones) and 50 state regulators on the banking side, as well as 50 state examiners on the insurance side.


11 FinTech Trends You Need To Follow
By Chris Skinner

Chris Skinner offers a breakdown of fintech trends we ought to be following, including insurtech, regtech and artificial intelligence. The first few weeks of 2017 bombarded us with articles predicting the future of fintech and financial services. I’ve now analysed them all and identified the top 11 trends that the leading banking and fintech experts agree we should be following now.


The Future of Chatbots
By Jim Marous

Artificial-intelligence-powered chatbots work in real-time and provide personalized and contextual answers to customer questions. It can tell your current account balance, transfer money to a friend, pay a bill, and report recent spending activity. It will eventually be more equipped to provide know you, look out for you and reward you with the benefits of deeper learning and timely advice. Last but not least, the bot will work on the messaging services and integrate with the personal assistants that customers are already using. Facebook Messenger, Amazon’s Echo as well as WeChat, Siri, Cortana, Slack, Line, Kik, and other platforms will all be supported. 

The Digital Bank vs Digital Banking

fintech banking bots

fintech banking bots

As we’re nearing the end of the year I think it is suitable time to do some predictions. So here are my two cents – I think next two years will be extremely volatile for the banking industry. The dawn of bots will apply immense pressure on the banks, way more than online or mobile has previously. Banks will slowly started to be pushed behind the slick interface of a tech giant or a fintech. The business model will require rapid change to accommodate for it. This week I’ve picked some articles that discuss how this could look like and WTF are the chatbots.

Thanks for reading; YOU are awesome!

Have a wonderful week,


FinTech Chatbots – The Millennial Command Line
By Chris Gledhill

Banks have churned through a good few channels recently: Mail, Branch, ATM, SMS, Telephony, Web, Mobile App. It’s fair to say the Mobile App currently rules supreme. However, the next #1 customer touchpoint for the majority of incumbent banks will be chatbots. Banks and other industry vertical players will toy with their own chatbots but they will ultimately fail as the best bots will be multi-disciplined. This change is not far off. Banks won’t have the time to adjust like they did will apps and the impact of losing the customer will be huge for the incumbent banks that don’t adapt.


Chatbots – Saviour or Disintermediator?
By Stephen Greer

Chatbots offer incredible scale at a pretty cheap price, making adoption potentially explosive. They give the bank the ability to automatically appear in almost all of the most used apps in the world. The opportunity with digital assistants is immense, and given the nature of bank transactions, it’s not hard to imagine chatbots becoming a widely used engagement method. However, Chatbots will only further fragment the customer journey, requiring an even clearer understanding of how consumers are choosing to handle their finances and make transactions. Banks need to start thinking about how chatbots and AI fit into a long-term digital channels strategy, one that doesn’t handcuff the institution into a no-win proposition of competitive disadvantage versus wilful disruption.


The Digital Bank vs Digital Banking
By Sudhir Kesavan

For a few years now, it has been expected that digital will spur the creation of banks as platform, marketplace banking, identity as a service offering and other constructs of a radical nature. There is a sharp chasm emerging between a large number of traditionalists and the smaller set of pioneers. Banks are essentially risk management businesses. The business of attracting customers outside of product or services that don’t involve this function is lost on a bank. This thinking has led traditionalists to continue to view digital as first and foremost a channel strategy, and second as a cost management one. Prioritising the customer-need-driven agenda can only be successful if it forms part of the overall strategic agenda, or else it will end up as proof of concepts. While a majority of FIs will become digital banks, it’s only the pioneers who will practice digital banking.


Banking Is Not An Industry, Nor A Business Model
By Periklis Thivaios

Banks are not in the banking industry. Banking is not an industry, nor a business model. Instead, banking is an umbrella term referring to a number of services that just so happen to be performed by banks. Practically, banks are in a number of industries, namely lending, payments, transaction processing, advisory, investments and so on. As a consequence, their competitive strengths and weaknesses have to be evaluated per industry; their competitors as well. Banking analysts can draw a number of lessons from other industries that have experienced disruptive forces in the past. An analysis of banking as an industry is likely myopic and would require a decomposition of the business models that make it up. Don’t look for answers in banking. Instead, try to understand and improve the actual industries you are really in.

I Just Got Back From The Future – This Is How Banking Will Look Like In 2025

I just came back from the future - this is how banking will look like

I just came back from the future - this is how banking will look like

Banking has hardly changed until very recently. Yes, in the early 2000’s we started slowly adopting telephone banking, then there was Internet banking, now there is mobile banking. However, all of this ‘innovation’ simply changed how we access bank, not how we bank.
I believe the upcoming changes in banking will change beyond how we access banks and change how we bank too, hopefully, making it more secure and convenient.


Banking In 2025

Let’s have a ride in my DeLorean DMC-12. Year 2025, GO!
Ok, sorry about some turbulence, we’re here. See that’s future you, for some reason, you need to go to the bank branch. I know, it’s 2025, but you insist…
Other you (the one from the future) quickly tells your voice assistant that you are going to bank branch; it finds the nearest one near you and loads the details to your Augmented Reality (AR) headset. You get into your flying self-driving (or self-piloting) car. Those will exist; don’t shatter my dream. The car flies you to the branch, you don’t need to worry about parking, your car will just drive away and find a parking spot nearby. You will simply hail it from your smart watch once you are leaving the building (that’s a scary thought for Uber).


The Branch of the Future

Apple Store - FinTech Summary

Apple Store

You walk into all white bank branch that feels like an Apple store. There are huge touch screens and iPad Vacuums (you know they are so light it’s practically vacuum so they called it vacuum because Air is considered heavy these days) on the table. You will find the nearest available iPad, launch authentication app which will scan your retina, fingerprint and 3rd party (bank employee who is present nearby) approval that you are not being forced to authenticate your account against your will. More like supermarket self-checkout experience where there is one employee who only approves age for alcohol purchases and helps if something goes wrong.

Self Service - Digital Banking

Self Service – Tescos


 Instant Secure Service

You’re logged in, and the app has synced with your augmented reality handset. You seem to be transferring a large amount of money, so you need to verify the transaction with your voice, the app asks you to read out a sentence and say your name. All matches.
The reason you are transferring a large amount of money is because you are moving to a new bank, you like their app better. Since it’s 2025 changing banks is as easy as changing the brand of your shampoo. All data is owned by the customer and can be provided to all other institutions via API, instantly.
Money is wired instantly because of advances in blockchain technology and settlement.


Bots Are Running The Bank!

Your phone vibrates. You got a new message on Facebook Messenger from your new bank saying that your new account has been activated. You can start using it right away. You only registered for it 30 minutes ago.

Chat Bot - Fintech Summary, Digital Banking

Chat Bot – Digital Banking

You respond with a thank you because your conversation feels very natural and human-like even though you are talking to bot called Jenny (you can change it Jack if you want). She asks you if you would like to enable personal finance manager support and personal accountant support, free of charge. You ask what they are and Jenny kindly explains:
Personal finance manager, Bob, is an AI-powered bot that gives you a holistic view of your finances and provides forward-looking advice. For example – good investment opportunities for your risk profile, remortgaging your house loan or consolidating your loans into a more attractive P2P loan to shave off interest payments if better deals are available.
Personal accountant, Diana, is also a bot, who has a more backward look at your finances, identifying largest expense pools, comparing spending of any specific category month-to-month to understand the changes and providing suggestions how to make more with your money.
Diana asks if you want her to help you save better with smart saving. You quickly type – ‘what’s smart savng?’ Diana is not phased by the spelling mistake and explains that smart saving will use your previous spending data to understand when is the best time for you to save and how much you can afford to put aside. It will occasionally transfer a small amount to your savings account when according to the algorithm you need will miss it least, and sends you a message on WhatsApp (you can change it to WhatsApp or even Snapchat if you want) to ask if you’re happy about it. If you say no, the money is instantly returned to your main account.
This way, Diana explains, we can develop better saving habits and taking out the most difficult part of the savings equation – ourselves. You agree.

Digital Banking - Savings

Digital Banking – Savings – Every Bit Adds Up


Exceptional Service

You thank Diana and got back to your chat with Jenny. You say that you would like to use both services, it’s free after all. You say thank you, because, again, it feels like talking to a friend with a very casual language and emojis. Now you ask her to change your monthly rent payments (all payee details are stored centrally, and you don’t need to reenter them even though you just opened this bank account) to include that 2% annual rent increase and then send it to your landlady. 15 seconds later you get a message that it is done. At this point, you are not even typing but simply talking to the microphone. It’s easier this way, and you are constantly authenticated (voice authentication) to carry out most operations. At the critical moments such as money transfer, you are required to tap fingerprint scanner as a second step confirmation.
Ok, you’re done, you press the 1-button logout. The session is closed (it would close anyway as soon as you step more than 5 feet away from the iPad due to NFC sync between your AR set and the iPad as an added security measure).
You tap your smart watch to hail your car and fly into the sunset… Banking feels more like shopping for gadgets than, well, banking!
Ok we need to go back now, DeLorean is running out of fuel. They haven’t invented electric time travel cars yet…


Back to Reality

How do you imagine banking in the future? Would you be more likely to trust your banks with services like that? Leave a comment.

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I need to go and wash DeLorean before dad finds out…

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