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  • @fintechna 12:18 am on April 14, 2017 Permalink | Reply
    Tags: , , , , , MobileFirst, Report, , ,   

    Chase, Wells Report Strong Mobile User Growth 

    JPMorgan and Fargo are certainly on the right track to becoming .  Both reported their first quarter 2017 earnings this morning, demonstrating numbers (despite the troubling few quarters that at least one of the banks went through). Chase reached 27.2 million active mobile customers this quarter, up 14.7% from the [&;]
    Bank Innovation

  • @fintechna 3:35 am on November 13, 2016 Permalink | Reply
    Tags: , , , , , Report, , ,   

    New Report: Robo-Advisory Model At a Tipping Point 

    The -advisory is at a with all current players needing further development if the robo concept is to prove long-lasting.

    Without further refinement on the part of the individual robo-advisors themselves, a substantial portion of current providers will have difficulties succeeding in the long-term. This is one of the main findings of the Leading Robo-Advisors 2016 &8211; Benchmarking the current automated investment landscape and mapping the road ahead&; for which the Swiss research company MyPrivateBanking Research analyzed and ranked 30 leading robo-advisors worldwide.

    In their global benchmarking of robo-advisor platforms, the MyPrivateBanking report identifies plenty of examples of good practice at the level of individual functions. However, in the researchers’ view, no providers are yet coming close to offering an end-to-end consistent level of excellence. “We see that most robo-advisors are good at some features, but at the same time missing out completely on other important ones”, say Francis Groves, senior analyst of MyPrivateBanking Research.

    “While this was tolerated by clients at the start of the robo-advisor breakthrough, they now demand a top-performance throughout the full process, from comprehensively explaining the services to superior portfolio reporting.”

    Schwab intelligent Portfolios, Indexa Capital and Nutmeg top ranked robo-advisors

    MyPrivateBanking’s ranking of 30 robo-advisors from 15 countries awarded the highest scores to the these three platforms:

    &; Schwab Intelligent Portfolios (USA) – exhibiting great strengths in the key areas of product and process information and client assessment plus user experience (43 points out of 60).

    &8211; Indexa Capital (Spain) – a good ‘all-rounder’ with a solid performance in all areas (42 points).

    &8211; Nutmeg (UK) – Another example of excellent product and process information coupled with being one of the top three providers of investment knowledge and education (42 points).


    New Report: Robo-Advisory Model At a Tipping Point fintech


    Most robo-advisors fail to offer a user friendly performance across the full process and all channels

    However, with more than a third of the evaluated firms achieving less than half of the possible points, and the highest scoring robo-advisor scoring slightly less than 75% of the maximum available points, MyPrivateBanking sees considerable room for improvement. In particular the survey identified that there are too many gaps in most robo-advisors’ onboarding processes to guarantee a steady stream of new clients.


    New Report: Robo-Advisory Model At a Tipping Point fintech


    MyPrivateBanking’s evaluation covered 43 different criteria and assessed the performance overall including for the robo-advisors’ websites, mobile apps and social media channels. Some of the more troubling key research findings are:

    (1) None of the platforms evaluated have yet developed the robo-advisory model of client recruitment to its full potential, with even the best current players leaving out at least one essential component. For example, analysts found that advisors provided either good information about the product and process OR good knowledge content but rarely both.

    (2) Client assessment, the highest profile component of robo-advisor onboarding, is generally falling well below a sufficiently rigorous standard. Less than 50% of the evaluated advisors failed to explain the purpose of their questions and only 53% included a comprehensive check on a prospective investor’s attitude toward risk.

    (3) A high proportion of the robo-advisors, 23%, are abdicating from the any responsibility for sustaining their own clients’ ongoing investing ‘career’ by the provision of relevant, easily digestible education and knowledge or even, in some cases, providing dedicated social media.


    In respect to robo-advisors offered by well-established institutions the MyPrivateBanking analysts identified a tendency of such actors to enter the robo-advisor space for the first time by creating robo mini-sites. These are characterized as one or two page websites, which may or may not be embedded in the institution’s overall web presence, that are clearly not designed to be revisited by signed-up clients.

    In MyPrivateBanking ‘s view this is a kind of robo-advisory sub-species that may assist with rapid client onboarding but which does not, on its own, do a lot to foster enduring client-advisor relationships. “We foresee the need for leading institutions to be more radical and wholehearted in their automated investment initiatives in the next few years, even if this means starting over again with a second robo-advisor to replace their first.”

    Only robo-advisors constantly pushing ahead for superior client experience will survive

    “The pioneer years of robo-advisors have come to the end and the market will separate the wheat from the chaff“, stresses Francis Groves. „Too many automated investment services target the same, growing &8211; but still not sufficient &8211; client segment to nurture all or most of them. Too few of the automated investment services see their platform through the eyes of a first time user, while many are losing sight of the need for sustaining a customer experience that will – ideally – last for years.”

    New Report: Robo-Advisory Model At a Tipping Point fintech

    In this report, MyPrivateBanking makes a series of recommendations on the basis of our benchmarking evaluation, among them:

    (1) Aiming for transparency is the best policy, especially when presenting the robo-advisor’s pricing and product and process information.

    (2) Automated investment platforms need to be subjected to rigorous user experience testing. Looking good is not enough – equally, content must be in-depth.

    (3) Robo-advisors risk side-lining themselves if they don’t recognize that clients need financial plans as well as investment portfolios. At least a basic financial planning offer should be considered for inclusion as part of the robo value proposition.

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  • @fintechna 3:36 am on November 6, 2016 Permalink | Reply
    Tags: , , , , , , , Globally, Half, Report, , ,   

    World FinTech Report 2017: Half of Banking Customers Globally Now Using FinTech Firms 

    of across the globe are the products or services of at least one firm1, according to the first FinTech (WFTR) from Capgemini and LinkedIn, in collaboration with Efma.

    The inaugural report quantifies and tracks customer response to the rise of FinTechs, includes the views of financial services industry executives at both FinTech and traditional financial institutions2, and summarizes how innovation is key in the emerging industry landscape.

    In particular, the WFTR found that FinTechs are gaining momentum and mindshare amongst younger, tech-savvy, and affluent customers. Emerging markets led the adoption where over 75% of customers in China and India report using services provided by FinTech firms, followed by the UAE and Hong Kong.

    FinTechs have made the greatest inroads in investment management, where 17.4% of customers rely on them solely and another 27.4% use them in addition to their traditional providers. With so many FinTechs specializing in niche services, the WFTR also found that many FinTech customers (46.2%) are using services from more than three FinTech providers.

    FinTechs continue to gain momentum, but overall customer experience and trust remain low

    While FinTech providers continue to have a disruptive market presence, overall customer trust levels in these providers remain low. Only 23.6% of customers say they trust their FinTech provider compared to 36.6% for traditional firms. Customers noted traditional financial institutions still hold some advantage over FinTech providers when it comes to fraud protection, quality of service, and transparency.


    World FinTech Report 2017: Half of Banking Customers Globally Now Using FinTech Firms fintech

    “Rising customer expectations for more personalized and advanced digital experiences, advancements in , greater access to venture capital, and lower barriers to entry have created fertile ground for growing FinTechs,” said Penry Price, Vice President, Marketing Solutions, LinkedIn. “FinTechs are largely gaining momentum by meeting needs traditional players have yet to address, but many FinTechs lack the transparency required to earn the trust of their consumer audiences to capitalize on these opportunities.”


    The drive for collaborating with FinTechs is seen as key to delivering innovation

    Traditional financial institutions continue to face challenges, with less than half (44%) of executives confident in their FinTech strategy. This is not surprising given only about one-third (34.7%) affirmed they have a well-structured or proactive innovation strategy in place that is embedded culturally. The risk-averse nature of traditional firms also makes it difficult for them to create cultures that prioritize innovation, and 40.3% of executives said that theirs is not conducive to innovation.

    World FinTech Report 2017: Half of Banking Customers Globally Now Using FinTech Firms fintech

    “Financial services senior executives are seeing FinTechs in a whole new light as they see greater opportunities to collaborate, but are also making significant headways in building more agile, in-house FinTech capabilities.” said Thierry Delaporte, Head of Capgemini’s Global Financial Services Business Unit and Member of the Group Executive Board. “But with the exception of a handful of industry leaders, most firms are struggling to achieve positive results from their innovation initiatives with only 10 percent of executives stating they have been very effective at achieving desired innovation results.”

    The WFTR found that traditional firms are increasingly pursuing a wide range of strategies in response to FinTechs. A majority of financial institutions (60%) now view FinTechs as potential partners, but nearly the same percentage (59.2%) are also actively developing their own in-house capabilities. Beyond partnership and in-house development, executives are exploring a full range of models, whether it be Investment in FinTech (38%), partnering with educational institutions (34.3%) or setting up accelerators (29.6%), while a much smaller percentage (18.6%) are acquiring FinTechs.


    Traditional firms actively investing in emerging technologies to improve both operations and customer experience

    Traditional firms are in large, part responding to this shift by giving highest priority to investment in technologies which facilitate more streamlined and effective operations, thereby providing better day-to-day customer experiences.

    Nearly 90% of executives report they are most focused on implementing big data and analytics, followed by the Internet of Things (IoT) (55.8%), (54.7%), robotic process automation (52.3%), and open API technologies (50%). Blockchain technology, which forms the backbone of the popular virtual currency , is increasingly penetrating the financial services industry. It has numerous applications including enhanced transfers of digital assets, identity management, and better management of reward and loyalty solutions.

    “Both FinTech and traditional firms still have work to do on delivering a better customer experience,” said Vincent Bastid, Secretary General, Efma. “The arrival of FinTechs has accelerated the improvement of overall customer experience in the industry but it is still not at the level that customers perceive that it should be. It is only a matter of time before BigTech3 companies and players in e-commerce and telecommunications join in to stake their claim to benefit from this industry disruption.”

    To help traditional firms overcome their innate resistance to innovation and address current and potential future disruption, the WFTR has defined a four-step framework which will be essential in the face of a growing number of prospective threats to the financial services business.

    According to the report, traditional FS firms can unlock innovation by: discovering new technologies, devising ideas and insights into business models, deploying aligned executives to support innovation, and sustaining innovation by improving efficiency and implementing best practices. As the “platformification”4 of the industry continues to gain momentum, it will be more and more imperative that financial institutions take aggressive action to innovate to ensure they are prepared.

    World FinTech Report 2017: Half of Banking Customers Globally Now Using FinTech Firms fintech

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  • @fintechna 3:35 am on October 29, 2016 Permalink | Reply
    Tags: , , , Comeback, , , , Investigates, Mutual, Report, Sigma, ,   

    A Comeback For Mutual Insurance? Swiss Re Report Investigates Six Sigma and Digital Technology 

    The sector has undergone a modest recovery in recent years, says Re&;s latest   &;Mutual insurance in the 21st century: back to the future?&; Mutual insurers&8217; share of the overall insurance market increased from 24% of direct premiums written in 2007 to just over 26% in 2014, reversing some of the declines of previous decades. However, the segment faces challenges, including adapting to new risk-based capital requirements and more stringent corporate governance arrangements, which could put some mutuals at a competitive disadvantage.

    A Comeback For Mutual Insurance? Swiss Re Report Investigates Six Sigma and Digital Technology fintechFurther, mutual insurers must embrace technological disruption. Exploiting such as smart analytics and social media should allow mutuals to better serve the interests of their member-owners, while their ownership structure should enable mutuals to keep insurance affordable for some individuals and risks.

    The primary purpose of mutual insurers is to provide risk protection coverage for its owner-members, rather than to make profits or provide returns to external shareholders as in the case for stock-based insurers. Over the past few years, cumulative premiums written by mutual insurers have outpaced those of the wider insurance market, with much of the outperformance concentrated during the height of the financial crisis in 2008-09.


    &8220;That mutuals&8217; relative premium performance did not reverse once economic growth resumed after the financial crisis, suggests a degree of permanence to the segment&8217;s recovery,&8221; says Kurt Karl, Chief Economist at Swiss Re. &8220;Some mutual groups have expanded internationally in recent years, and new mutuals have been established in a number of markets, another indication of the segment&8217;s renewed popularity.&8221;

    However, while mutuals&8217; share of the global insurance market has increased modestly since 2007, it remains well below previous highs. For example, in the life sector, the share of global premiums of life mutuals was 23% in 2014, well below levels of around 66% in the late 1980s and early 1990s before a wave of demutualisations in a number of countries.

    A Comeback For Mutual Insurance? Swiss Re Report Investigates Six Sigma and Digital Technology fintech


    New challenges
    Mutual insurers face a number of challenges. The most obvious comes from new risk-based capital requirements and tougher corporate governance arrangements introduced by governments and regulators, designed to boost the resilience of individual insurers and curb excessive risk taking. These requirements could put some mutuals, especially smaller ones with a narrow regional or business line focus, at a competitive disadvantage. Larger and better-diversified insurers are in a stronger position to manage the additional operational and funding costs associated with compliance.

    Regulators appear alert to the possible unintended consequences of their new rules, and emphasise proportionality in implementing the new prudential (i.e. capital) and governance regimes. There has also been a renewed focus on the range of capital solutions available to mutuals, including legislation in some countries to allow equity-like capital instruments to be issued, such as certificats mutualistes in France. Together with customised reinsurance solutions and alternative risk transfer mechanisms such as insurance-linked securities, this will give mutuals increased financial flexibility to grow their business and compete with other types of insurers.


    Embracing digital technology
    Digital technology is changing the way that insurance is designed, priced and sold, and is fundamentally re-configuring the competitive landscape in which all insurers operate. Mutual insurers must adapt and upgrade their underwriting and distribution practices if they are to remain relevant in the digital age. There are signs that many are actively embracing such change, but some mutual insurers are lagging behind.

    A Comeback For Mutual Insurance? Swiss Re Report Investigates Six Sigma and Digital Technology fintech

    For example, smaller mutual insurers have not yet adopted full online functionality in their business practices, perhaps reflecting their greater attachment to traditional agent/broker distribution. The laggards run the risk of losing out to market participants better placed to harness the new technologies. This is especially true given the growing development of peer-to-peer (P2P) insurance platforms, which enable individuals to share risks among themselves in much the same way that affinity-based mutual insurers do.

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  • @fintechna 3:36 pm on October 26, 2016 Permalink | Reply
    Tags: , , , , , , , Gearing, Report, ,   

    Swisscom Fintech Report: Banks Are Gearing Up For Digital Disruption 

    Attracting US$ 19.1 billion in investment in 2015, firms are growing fast. As customers are increasingly relying on financial services provided by non-traditional providers, are up for of the industry, according to a new report by &;s e-foresight and Sourcing Competence Center of the University of Saint-Gall and Leipzig.

    Swisscom Fintech Report: Banks Are Gearing Up For Digital Disruption fintechPeer-to-peer payment has been a hot topic in Switzerland, notably since the launch of Twint and Paymit. But despite the buzz, volumes of mobile payments remain small, growing at a slow pace.

    Nevertheless, over 50% of banks believe that mobile contactless payment methods will become popular in the near future. Peer-to-peer services and contactless payments methods will continue to evolve, grow and remain an opportunity for financial services firms, the says.

    92% of respondents said that online onboarding will be crucial for banks in the near future. In March, the Swiss Financial Market Supervisory Authority (FINMA) passed new rulings aimed at reducing obstacles to fintech, among which a circular on video and online customer identification to allow financial intermediaries to onboard clients by means of online and video transmission.

    A report by Signicat released in April argued that customers are feeling increasingly unsatisfied with banking onboarding processes which are often considered frustrating and time-consuming. Customers are demanding 100% online processes, the study found.

    According to the Swisscom survey results, banks are confident that digital assistance, -advisory, payments and financing are the areas that will be the most impacted by fintech solutions.

    Swisscom Fintech Report: Banks Are Gearing Up For Digital Disruption fintech

    Qualifying robo-advisors as one of the key innovations in the sector, the report advises banks to identity their target groups for such services and start elaborating a strategy.

    Despite Switzerland&8217;s relatively small crowdfunding sector when compared with the likes of the US and the UK, the industry has been growing steadily since 2014. The report cites the launch of crowdfunding platforms by a number of banks as well as the increasing number of collaborations between startups and financial institutions in the areas. It further notes the emergence of innovative solutions such as real estate crowdfunding and predicts notable growth for SME lending and financing.

    Banks named the most disruptive technologies in the industry as being mobile terminals, biometric authentication, cloud computing and Big Data.

    Swisscom Fintech Report: Banks Are Gearing Up For Digital Disruption fintech

    Earlier this week, the Swiss government announced plans of policy changes to boost competitiveness of the country&8217;s financial industry. Notably, the Swiss Federal Council released a report on a &;future-oriented financial market policy&; that would allow foreign banks to open in the country. The legal framework is expected to encourage the fintech sector and sustainable investment.

    &8220;A stable and competitive financial sector that functions well is a mainstay of the Swiss economy. The Swiss financial centre should continue to assert itself as one of the world&8217;s leading locations for financial business and even be able to strengthen this role,&8221; the Council said as quoted by Out-Law.

    The move came a month after Switzerland&8217;s financial regulator FINMA has signed a fintech cooperation agreement with the Monetary Authority of Singapore (MAS).

    The agreement aims at providing a framework for fintech companies in Singapore and Switzerland to expedite discussions on introducing new products into each other&8217;s market and understand regulatory requirements.

    MAS has signed similar fintech agreements with the Korean Financial Services Commission, the UK financial authority and the government of Andhra Pradesh.


    Featured image: Wireless technologies by ESB Professional, via Shutterstock.com.

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  • @fintechna 3:36 pm on October 19, 2016 Permalink | Reply
    Tags: , , , , , , , , Landscape, Report,   

    Report: Challenger Banks Landscape 

    External forces from demographic, social, economic and regulatory phenomena have contributed to one of biggest revolution in the banking world: the emergence of .

    Report: Challenger Banks Landscape fintechDigitally-focused challengers such as Atom, Fidor Bank, Mondo and Starling, have grown significantly in 2015 and 2016, fueled by changing customer expectations, the new Generation Z, the heavy smartphone use in accessing finance and emerging technologies.

    Most of the innovation around and challenger banks have occurred in regional hubs and heavily supportive countries and environments, according to a new by Burnmark, including the UK and the US.

    &;The UK holds the first mover advantage as a home for challenger banks, but new geographies are gaining ground with support from government, regulators, investors and entrepreneurs,&; the report says.

    &8220;The US, Singapore and Australia, in particular, are actively competing to create best-in-class financial innovation ecosystems and are increasingly progressive in their use of government and regulatory policy to support challenger banks.&8221;

    In early 2014, the UK Financial Conduct Authority launched the Project Innovate to support regulation for innovative businesses. Singapore has a £100m financial sector and innovation scheme and Australia has announced a £500m national innovation and science agenda.

    The UK also leads in terms of fintech investment, having generated £524 million in 2015 compared with £3.6 billion in California and £1.4b in New York in 2015. The country has an unrivalled lead in terms of financial expertise, employing 1.2 million people in the financial services industry.

    Following the UK, Singapore has been increasingly active in policy and benefits to make it an attractive fintech hub. In November, the Monetary Authority of Singapore, the country&;s central bank and financial regulator, will organize the week long Fintech Festival which will bring together policymakers, fintech experts, entrepreneurs and VC to discuss the future of finance.

    MAS has also opened its fintech innovation lab called Looking Glass @ MAS to experiment fintech solutions with financial institutions, startups and tech vendors.

    Report: Challenger Banks Landscape fintech

    According to the report, the emergence of challenger banks are &8220;multi-fold&8221; and dependent on the regions they belong to. For instance, in developed markets, challenger banks are gaining prominence due to the underlying inefficiencies of the incumbents in service the customer in the best possible and transparent manner.

    Emerging markets on the other hand are looking at challengers as a medium to accelerate banking innovation as well as financial inclusion. With mobile penetration increasing significantly in these locations, banks utilizing digital channels to onboard, engage or serve customers are evolving to become an important medium for financial inclusion initiatives.

    Notable ventures include Abacus, a digital bank backed by a UK-based private equity firm AnaCap; Metro Bank, which implemented Backbase’s Omnichannel Banking Platform for its digital banking front-end, FIS/SunGard’s Ambit Asset Liability Management solution and outsources mortgage processing to BancTec; Monzo Bank, which has been built on open source stack including Linux, Apache Cassandra, and Google&8217;s Go programming language; Secco Aura, which uses a distributed database similar to the which allows data to be stored on customer&8217;s devices as well as the bank; and Tandem Bank, which uses FiServ&8217;s core banking and its Agility platform on SaaS.


    Featured image: Bank via Shutterstock.

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  • @fintechna 3:35 am on September 21, 2016 Permalink | Reply
    Tags: ‘Impressive, , , , , , , , , , Industry’s, Report,   

    New Report Highlights Germany’s Fintech Industry’s ‘Impressive Growth’ 

    The Germany&;s burgeoning industry is quickly emerging as a regional leader with a number of startup gaining international recognition and Berlin becoming a &;strong contender for London&8217;s fintech crown,&; according to a new report by UK payments startup GoCardless Ltd.

    &8220;It&8217;s no secret that Germany took its time to enter the scene, especially with investors erring on the side of caution due to the complex nature of German financial regulations, the says.

    &8220;But now the gap is finally closing on the UK. As Brexit places London’s ‘EU passport’ in jeopardy – the UK may soon find itself overtaken by Germany in the near future.&8221;

    New Report Highlights Germany’s Fintech Industry’s ‘Impressive Growth’ fintech

    Germany&8217;s fintech universe by city, EY Analysis 2016

    With now 250 companies employing approximately 13,000 people, Germany&8217;s fintech industry is growing rapidly.

    A report by EY released in March, suggests that the German fintech market is fragmented but has developed three main hubs: Berlin, Rhein-Main-Neckar region and Munich, each standing for a distinct characteristic.

    In terms of investment, Germany is lagging behind the UK, with €524 million invested in domestic fintech startups in 2015 compared to €707 million for UK startups.

    Ventures focusing on banking and lending alone have attracted a big chunk of Germany&8217;s overall fintech investment, raising €402 million in 2015.

    New Report Highlights Germany’s Fintech Industry’s ‘Impressive Growth’ fintech

    GoCardless &;What you didn’t know about German FinTech&8217; report

    The report notes the involvement of Peter Thiel, the co-founder of PayPal and a prominent figure in the tech industry, in a number of deals. These include participation in funding rounds of Zinspilot, a platform for comparing interest rates, and Hamburg-based consumer loan platform Kreditech.

    Traditional and financial institutions have too been involved, with a number of them either acquiring or partnering with startups to add innovative products and services to their portfolios. These include Sparkesse which acquired the majority of shares in payments startup Payone in 2015, as well as Deutsche Bank which has been collaborating with domestic startups such Gini and Fincite.

    Gini is a B2B focused financial data analytics startup delivering an API that uses artificial intelligence to enable businesses to automate paperwork, while Fincite is a German -advisor provider.

    Deutsche Bank has further announced plans to invest €1 billion in digital banking in the next five years as part of its &8220;Strategy 2020&8221; to boost efficiency, cut down on risky businesses and boost its capital base, as reported by Handelsblatt in March.

    One of the UK&8217;s competitive advantages over Germany is the supportiveness and openness of the Financial Conduct Authority (FCA) related to the UK&8217;s ambition to become the fintech capital of the world. &8220;A major component of that policy includes tax incentives to encourage seed investments, along with government programs to support innovation,&8221; the report says.

    This has helped foster a flourishing fintech startup community with widely renowned ventures such as TransferWise, Funding Circle and Monese.

    Germany&8217;s Federal Financial Supervisory Authority (BaFin), on the other hand, is deemed &8220;more complex and more conservative towards the development of fintech.&8221;

    &8220;The BaFin is still far behind on implementing policies similar to the FCA&8217;s,&8221; it says.

    &8220;For many German FinTech startups, acquiring a banking license from the BaFin is considered a path to profitability as it enables establishment of faster processes. But it also requires startups to implement strict controls and supervision for fraudulent activity. The application process can be long, complex and costly for recently founded startups, which discourages venture capitalists from making major investments in the industry.&8221;

    In light of the regulatory hurdles, banks have been trying to bridge the gap through investment funds, while players such as &8220;fintech company builder&8221; FinLeap have introduced products and services to help startups with financial regulations.

    For instance, FinLeap&8217;s SolarisBank is a fully licensed digital bank focusing on powering e-commerce businesses and fintech startups with modular, API-accessible financial services.

    While some local fintech startups have to rely on partnerships with existing financial institutions to help them grow, others such as N26, formerly known as Number26, have been awarded a full German banking license.

    Berlin-based N26 is a digital challenger bank that allows users to open an online banking account from their smartphone &8220;in under 8 minutes.&8221; N28 provides customers with a free MasterCard payment card, as well as the ability to send money abroad in 19 different currencies.

    N26 is currently available to customers residing in Germany, Austria, Ireland, France, Spain, Italy, Greece and Slovakia.

    Another challenger bank that holds a German banking license is Fidor Bank (Fidor Group), which was acquired by France&8217;s Groupe BPCE in July 2016.

    &8220;There&8217;s already lots of activity in the German FinTech scene and some of the established players mentioned earlier have already laid the groundwork,&8221; the report says.

    It concludes:

    &8220;There is massive potential for Germany to rival, and perhaps even take over from, the UK when it comes to fintech. The UK leaving the EU may also pave the way for Germany to take that lead sooner than expected, with the UK’s so called ‘EU-passport’ in jeopardy.&8221;

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  • @fintechna 3:36 pm on September 10, 2016 Permalink | Reply
    Tags: , , , , , , , , , Report, , ,   

    WEF Report Addresses How Blockchain Can Reshape Financial Services 

    , also known as distributed ledger technology, has attracted the interest of the ecosystem &; and their money.

    Over the past three years, the World Economic Forum (WEF) estimates that some US$ 1.4 billion have been invested into blockchain technology with companies having filled over 2,500 patents during that same period of time.

    Over 90 corporations have joined blockchain consortia and 80% of say they would initiate blockchain projects by 2017.

    As blockchain has become a buzzword in the financial services industry, WEF has conducted a 12-month research to better understand the implication and potential of blockchain technology in the sector.

    WEF Report Addresses How Blockchain Can Reshape Financial Services fintechIn a new report titled &;The future of financial infrastructure: An ambitious look at how blockchain can financial services,&; WEF details its six key findings:

    Blockchain technology has great potential to drive simplicity and efficiency through entirely new financial services infrastructure and processes.

    For instance, it can reduce and even eliminate manual efforts required to perform reconciliation and resolve disputes. It can also enable real-time monitoring of financial activity between regulators and regulated entities, reduce counterparty risk, enable asset provenance and full transaction history, and disintermediate third parties that support transaction verification and validation thus accelerating settlement.

    Distributed ledger technology should be viewed as one of the many technologies that will transform the foundation of next-generation financial services infrastructure. It should be seen as &8220;part of a toolbox&8221; that includes biometrics, cloud computing, cognitive computing, among other emerging technologies.

    Blockchain technology can be used in many different areas with each use case leveraging the technology in different ways.

    For instance, in trade finance, blockchain enables real-time multi-party tracking and management of letters of credit, as well as faster automated settlement. For global payments, it allows for near real-time point-to-point transfer of funds between financial institutions, removing friction and accelerating settlement. For automated compliance, blockchain technology provides faster and more accurate reporting.

    Blockchain technology can be used for digital identity, &8220;a critical enabler to broaden applications to new verticals,&8221; as well as digital fiat currencies.

    A fully digital system for storing and transferring identity attributes, when directly integrated into a distributed financial infrastructure, can provide faster and accurate anti-money laundering (AML) and know-your-client (KYC) processes, as well as seamless customer onboarding.

    Distributed fiat currencies issued by central banks, when employed within a distributed financial infrastructure, can eliminate the need for an inefficient bridge between cash and a new financial infrastructure.

    The most impactful blockchain applications will require collaboration between all key stakeholders in the financial services ecosystem, including incumbents, innovators and regulators. This will require balancing competing interests, significant time and investment to replace existing financial infrastructure, as well as changing existing regulations, standards of practices and creating new legal and liability frameworks.

    New financial services infrastructure built on blockchain technology will redraw processes and &8220;call into question orthodoxies that are foundational to today’s business models.&8221; This includes question the need for individual books of record through immutable and distributed record-keeping, challenge existing competitive advantage models that leverage information asymmetry, allowing for on-demand and immediate monitoring and reducing the need to trust and rely on counterparties.

    That said, there are still a number of questions that need to be answered in order to move forward. These include assessing blockchain&;s feasibility, quantify benefits and analyzing implementation details.

    &8220;Cost-benefit analyses need to be conducted to determine the financial viability of distributed ledger technology,&8221; the says. &8220;Roadmaps need to be developed to achieve market participant collaboration and establish standards; governance models, backed by societal-level discussions, need to be envisioned to support technology accountability; and regulatory, legal and jurisdictional-specific tax frameworks need to be established and well-understood.&8221;

    The post WEF Report Addresses How Blockchain Can Reshape Financial Services appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 12:40 am on August 4, 2016 Permalink | Reply
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  • @fintechna 12:40 am on July 23, 2016 Permalink | Reply
    Tags: , , Moody's, , Report, ,   

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