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  • @fintechna 4:54 am on November 21, 2016 Permalink | Reply
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    Digital Waves & Financial Services 

    Even though the age finds its root in the 1950s with the rise of computers, we had to wait until the mid 1990s and the rise of the internet to witness a first wave of tectonic shifts and the creation of what many defined as the New Economy. Innovation, characterized by the application of to productive means and resulting in driving down costs relentlessly over time, was hard at work. This first wave did not escape the rule and we saw the cost of &;discovery&; plummeting. By discovery I mean the ability to find any type of data. Google benefitted from this trend and built an empire based on hyper efficient search. We also benefitted from another wave that saw the cost of &8220;communication&8221; dropping and the rise of various forms of connecting between humans. Facebook can be viewed at the intersection of discovery and human connections. Apple benefited from the connection/communication wave. Finally, Amazon mined the decreasing cost of discovery in the e-commerce field.

    Digital Waves & Financial Services fintech

    More recently, we have benefitted from the wave of &8220;personalization&8221; where a myriad of applications have unbundled past needs, uncovered needs we did not know we had, or disintermediated needs that were poorly serviced. Again, this wave resulted in the cost of personalization plummeting.

    Crucially whenever costs plummet, demand grows in both expected and unexpected ways. The New Economy and our demand have certainly exploded.

    It is interesting to observe that the industry did not immediately espouse these , nor did it find itself materially impacted by them, or at least it appears so to the naked eye. For example, were not particularly diligent in their internet banking efforts at that time. Even though new technology companies won the early stages of the New Economy and even though the financial services industry did not register any &8220;win&8221;, we also can categorically state that banks or insurance companies did not lose. They still command, to this date, market share and dominance in all five sectors  &; lending, capital markets, insurance, asset management, payments &8211; in every geography.

    The movement, in its first two phases, the &8220;direct to consumer&8221; phase and, once that first phase failed, the &8220;partnership pivot&8221; phase were essentially driven by the necessity to play catch and for the financial services industry to capture the lower costs of &8220;discovery&8221; and of &8220;connecting&8221; with users. Much needs to be done as most participants have not completed their digital journey. Even though startups and incumbents alike are still mostly focused on digitizing front end processes &8211; on-boarding, distribution, sales, underwriting amongst others &8211; we have now seen a broadening of the digitization movement towards middle and back office processes.

    Still this has not resulted yet in a dramatic lowering of costs in financial services and an increase in demand. To be clear, the cost of lending will never &8220;decrease&8221; below an incompressible cost of capital. The cost of delivering a loan should decrease, and in other sectors, the cost of of a payment (be it domestic, p2p, mobile, cross border, b2b) has yet to decrease across the board.

    Meanwhile, the technology world is busy reinventing itself and as the waves of discovery, communication, connection and personalization are flattening, new waves are engulfing us. I will focus on two technologies which I believe are the leading candidates to usher the next wave &8211; again characterized by reduced costs and demand explosion: Artificial Intelligence and AR/VR

    Artificial Intelligence holds the promise of bringing our decision making to the next level. Any of the AI vectors &8211; machine learning, deep learning, nlp/nlg/nlu to name a few &8211; will drive down the cost of &8220;decisioning&8221;. By decisioning I mean the ability to arrive at optimal decisions via superior analysis of mountains of disparate data and in the absence of clarity. Most technology companies are locked in an epic arms race hiring the right talent, developing their own AI tech stacks and applying their technology breakthroughs to their fast evolving business models. The next wave may indeed see the rise of cognitive enterprises and cognitively enhanced individuals.

    AR/VR holds the promise bringing our interaction with the world to the next level. I understand there are differences between AR and VR and for the purpose of this post will assume them away. AR/VR will drive down the cost of &8220;immersive discovery&8221;. By immersive discovery I mean discovery in action, using the full capabilities of our bodies in movement, in our three dimensional world;  as opposed to the discovery we have done to date from behind a laptop or a smartphone. Given the explosion of supply and demand ushered by the plummeting cost of &8220;discovery&8221;, I leave you to imagine what this wave may be able to bring about.

    Although it seems AI holds a slight edge over AR/VR currently based on maturity and traction, I do not definitively know which wave will be dominant first at scale, either in the enterprise or retail world. Suffice it to say that either wave will pose unique challenges to the financial services industry. Challenges inherent to customizing, designing, implementing and integrating each new technology paradigm. Challenges inherent in making use of and making sense of these new technologies with the right human skills. Finally, competitive challenges in the face of what we can only assume will be renewed pressure from non financial services enterprises ever more willing to capture poorly defended margins in lending or payments.

    Although  threats from fintech startups or tech companies have not been successful in eroding meaningful market share yet, many industry analysts believe that up to half and sometimes more of incumbents&; revenues are under threat. I believe this analysis does not fully include the implications of the lower cost of &8220;decisioning&8221; or &8220;immersive discovery&8221;. As such financial institutions may be under even more threat than we realize.

    Be that as it may, a reasonable and well educated practitioner will healthily push back and raise two objections to the demise of financial institutions at the hand of the potential dislocating effects of the above digital waves. One is articulated around regulation, the other around core systems.

    Regulation is tedious, complicated and costly and serves as a defensive moat. In some instances it can be a drag as financial incumbents cannot act as flexibly or nimbly as non-regulated entities. Still, regulation acts as an effective digital fire retardant. Regtech not only holds the promise of lowering the cost of compliance, it also holds the promise of lowering the cost of developing and disseminating regulation to the market. Should regtech lower the cost of compliance to such an extent that fintech startups become more competitive or non-regulated tech companies become less averse to regulation, then regulated financial institutions will come out weakened, all else being constant. I am not predicting this will happen, yet the likelihood should not be discounted altogether

    Core systems in the market today are cumbersome, expensive to build, expensive to maintain. Even though financial institutions &8211; banks or insurers alike &8211; dislike their vendors with the intensity of a thousand suns due to the woeful inability current core systems exhibit operating in a digital world, the fact is not everyone can afford core systems. Imagine a world where the cost of building, provisioning or deploying a core system would plummet and you are one step closer to another incumbent competitive advantage vanishing.

    Although the future of regtech and core systems is more difficult to predict than a presidential election, the trends clearly point towards cost and complexity reduction and even though the full effects of either the lower cost of &8220;immersed discovery&8221; or &8220;decisioning&8221; are still be be felt, they cannot be avoided. These new digital waves hold the potential to drastically lower the cost and complexity of &8220;building a bank&8221; or &8220;building an insurance company&8221;. Obviously, regulatory capital, liquidity and solvency issues will still hold, but picture a world where building a core stack will be as easy as building a web site and where the cost will be a fraction of what it is now &8211; to the dismay of the entire value chain of third parties currently feasting on any implementation, from consultants to systems integrators &8211; and you can start grasp the monumental changes afoot. Digital waves keep coming and most financial institutions are still standing. How will they respond to the coming waves is an important question to ask. How will incumbent service providers cope is equally intriguing. How fintech startups exploit gaps will be fascinating to witness.

    ps: no was harmed while writing this post.


  • @fintechna 12:19 pm on November 16, 2016 Permalink | Reply
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    The radical change coming to Financial Services; Fintech in Switzerland 

    accounts for 10% of GDP and 5% of employment in and the country is a global leader in Wealth Management. So, what happens here really matters and what is happening is earth-shattering (and we normally avoid hyperbolic language on Daily ).  I mean in the positiveRead More
    Bank Innovation

  • @fintechna 3:35 am on September 25, 2016 Permalink | Reply
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    Fintech Services im Retail Banking 

    Filialen bilden die traditionelle Schnittstelle zwischen Banken und ihren Kunden. Im Zuge der Digitalisierung der Wirtschaft und der mobilen haben sich die Erwartungen an und die Nutzung von Filialen durch die Bankkunden grundlegend verändert. FinTechs und zunehmend auch Banken stellen sich auf diese Veränderungen ein.

    Bonitätsrechner, SocialSentiment-basierte Investmentvorschläge und crowdbasierte Portfoliogenerierung sind einige Beispiele neuer Technologien und Lösungen an der Kundenschnittstelle, bei denen FinTechs und Banken um Kunden und Ertragsströme konkurrieren. Viele Banken tun sich schwer, mit den neuen Anforderungen umzugehen und die Opportunitäten, welche sich durch die Digitalisierung ergeben, zu ihren Gunsten zu nutzen. Sie sehen sich einer Vielfalt von Innovationen gegenüber, die in hoher Geschwindigkeit alle Schnittstellen mit den Kunden erfassen.

    Von Banken wird plötzlich erwartet, dass sie agil werden und hohe technologische, organisatorische und auch kulturelle Anpassungsfähigkeit beweisen. Doch wo geht die Reise hin und wie schätzen die Banken selbst die Relevanz dieser vielfältigen Neuerungen ein? Diese Frage ist Fokus der vorliegenden Studie und untersucht den Status quo von elektronisch erbrachten Services an der Kundenschnittstelle von Retailbanken.

    Initiatoren der Studie sind e-foresight, der ForschungsThink Tank für Digital der Swisscom AG und das Business Engineering Institute St. Gallen mit dem Kompetenzzentrum Sourcing in der Finanzindustrie (CC Sourcing) an den Instituten für Wirtschaftsinformatik der Universitäten St. Gallen und Leipzig

    Fintech Services im Retail Banking fintech

    Download the full study here

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    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 3:35 pm on September 23, 2016 Permalink | Reply
    Tags: , , , , , , Directive, , , Matters, , , Services   

    EU’s Payment Services Directive (PSD2): What It Is And Why It Matters 

    Recent regulatory changes in Europe, including the (), are set to accelerate payments innovation.

    The Payment Services Directive (PSD) was initially adopted by the European Union (EU) in 2007 and aimed at providing a legal framework for all payments made in the region with the purpose of making these faster, more efficient and easier to use for European consumers and payments services providers.

    In October 2015, the EU adopted a revised PSD &; also referred to as PSD2 &8211; that sought to enhance consumer protection, promote innovation and improve the security of payments services.


    PSD2: What is it?

    PSD2 is a major policy development expected to impact the payments industry across Europe through: further standardization and interoperability of cards, Internet and mobile payments methods; the reduction of barriers to entry in particular for card and Internet payments providers, driving thus increased competition, innovation and transparency across the European payments market; as well as providing the necessary legal platform for the Single Euro Payments Area (SEPA).

    The directive seeks to improve the existing EU rules for electronic payments, while taking into account emerging innovative payment services, such as Internet and mobile payments. It sets out rules concerning:

    • Strict security requirements for electronic payments and the protection of consumers&; financial data, guaranteeing safe authentication and reducing the risk of fraud;
    • The transparency of conditions and information requirements for payment services;
    • The rights and obligations of users and providers of payment services.

    The regulation came into effect on January 12, 2016, and EU countries must incorporate it into national law by January 13, 2018.


    The impacts

    The new directive brings key changes that include:

    Third-party payment initiation: Payment Initiation Service Providers (PISP) will be able to initiate online payments from the payer&8217;s bank account. This will encourage competition in the European payments industry. Accenture estimates PISP services could account for up to 16% of online retail payments by 2020.

    The definition of a &;payment institution&; is extended to new types and categories of players. While the original PSD applied only to transactions occurring within the EU, the PSD2 will extend this scope to &8220;one leg out&8221; transactions.

    Third-party account access: The directive will regulate account information service providers (AISPs). These providers act as aggregators of customer payment account information.

    Prohibition of card surcharges: The regulation seeks to standardize the different approaches to surcharges on card-based transactions across the EU.

    Security of online payments and account access through the introduction of new security requirements for electronic payments and account access, along with new security challenges relating to AISPs and PISPs.

    The directive will affect everyone in the shifting payment landscape. This includes , fintechs, the PCI (Payment Card Industry) as well as merchants.

    EU’s Payment Services Directive (PSD2): What It Is And Why It Matters fintech

    How PISPs and AISPs will change existing interaction models between customers and banks, Accenture report &;Seizing the Opportunities Unlocked by the EU’s Revised Payment Services Directive&8217;

    PSD2 will bring both challenges and opportunities for European banks. Banks will be required to open up their infrastructure to third parties by offering APIs under the XS2A (access to account) rule. They will be forced to grant them access to their customers&8217; online account/payment services in a regulated and secure way.

    On the other hand, PSD2 presents significant opportunities to grow new revenue streams &8211; by facilitating and monetizing access to raw data and banking services, for instance &8211;, capture customer ownership and process toward an extended ecosystem centered on the &8220;Everyday Bank,&8221; a concept that takes banking to being trusted, indispensable and central to consumers&8217; everyday activities.

    EU’s Payment Services Directive (PSD2): What It Is And Why It Matters fintech

    EU banks: challenges and opportunities of PSD2, Accenture report &8216;Seizing the Opportunities Unlocked by the EU’s Revised Payment Services Directive&8217;


    Featured image: Mobile banking concept by Ditty_about_summer, via Shutterstock.com.

    The post EU&8217;s Payment Services Directive (PSD2): What It Is And Why It Matters appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 3:35 am on September 23, 2016 Permalink | Reply
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    Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services & Digital Asset 

    SIX Securities Services, the post-trade infrastructure operator for the sector, and Digital Asset Holdings, a developer of for the financial industry, announced plans to develop a proof of concept that will demonstrate the commercial viability of distributed ledger technology across the Swiss financial , with an initial prototype for . The two firms will also develop a roadmap for future opportunities spanning the whole market infrastructure value chain.

    SIX Services recognizes the potential of distributed ledger technology and after a competitive evaluation process has selected as the business and technology partner for the design of a solution for the Swiss market. The initial phase of the project will demonstrate the ability to build and incorporate distributed, encrypted, straight through processing tools into existing securities transaction flows, and propose a roadmap for extending this to a production-ready service.

    The proof of concept will extend beyond the scope of the prototype, and Digital Asset will develop a product roadmap for future opportunities to include a wide range of applications that demonstrate how current, segregated processes could be streamlined and made more efficient for SIX Securities Services and post-trade ecosystem as a whole.

    SIX Securities Services has already made significant strides in exploring distributed ledger technologies and currently has a prototype for Corporate Actions processing on display at Sibos, in Geneva 26-29 September, 2016.

    Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services & Digital Asset fintech


    According to Thomas Zeeb, Division CEO SIX Securities Services: «Distributed ledger technology and its potential role in post trading is key to our business. We need to understand it, and more importantly, its applicability and future flexibility in order to keep ahead of the game. Partnering with Digital Asset is a way to accelerate our own development plans and leverage their experience in this area.»

    «Partnering with SIX brings this cutting edge technology another step closer to commercial reality,” said Blythe Masters, CEO of Digital Asset. “We believe this collaboration will provide exciting opportunities for SIX and its customers while reducing inefficiency, cost and risk in the financial services ecosystem.»

    The post Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services &038; Digital Asset appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 12:40 pm on September 15, 2016 Permalink | Reply
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    ‘Big Four’ Firm KPMG Talks New Blockchain Services Suite 

    has launched a of tools designed to help build with in a compliant way.Big Four Firm KPMG Talks New Blockchain Services Suite fintech

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

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  • @fintechna 4:54 pm on September 4, 2016 Permalink | Reply
    Tags: , , , , , , , , , Services,   

    Financial Services Productivity 

    Financial Services Productivity fintech

    It&;s a funny thing, . Very easy to define &; producing more with less &8211; but more difficult to measure. Productivity is easier to define for a given company (revenue per employee for example), somewhat easier to compare amongst like minded companies in the same industry, more difficult to use as a metric across industries, complex when applied to as opposed to manufacturing industries and utterly bewildering when taking into account qualitative factors.

    Productivity occurs when firms &;innovate&;. I use quotation marks because there are so many different ways to segment and qualify innovation. At meta level, innovation is the application of better technologies to an economic process &8211; a being a technique or collection of techniques invented by man.

    The narrative unfolds as such: a) we invent new technologies, then b) we innovate by applying these new technologies, and as a result c) we become more productive.

    Over long periods of time this cycle benefits societies as goods and services in a given industry become better and cheaper. As an example and as a result of productivity gains, there are now less individuals engaged in food production and the cost of food in our daily budgets has plummeted. In other words agriculture has become vastly more productive.

    Contrary to what many may think, the services industry has always been a heavy user of technology. To name but a few, advanced telecommunications applied to financial services have facilitated cross border transactions, advanced computing has helped the securitization industry, advanced data science has helped intricate trade and investment strategies. I would therefore state that financial services firms, on the aggregate, have always been innovators.

    Have they become more productive though? In absolute, or relatively speaking?

    Looking at revenue per employee and operating income (OI) per employee as crude productivity metrics for 2015, Bank of America delivers $ 392k in revenue and $ 104k in OI per employee vs Facebook which clocks $ 1.24m in revenue and $ 435k in OI per employee. On the face of it, Facebook is vastly more productive than Bank of America. The comparison gets more interesting when adding Goldman Sachs with $ 1m in revenue and $ 240k in OI per employee and Visa with $ 1.23m in revenue and $ 796k in OI per employees. Obviously some financial services firms are more productive than others and rival tech giants such as Facebook. These comparisons are unfair though as the business models are vastly different. Still, firms like Visa &8211; other likes MasterCard or the CME Group come to mind &8211;  are more technology-intensive companies while any bank &8211; with the exception of Goldman &8211; are less technology-intensive.

    From an empirical point of view, we know a majority of consumers and entreprises are dissatisfied with their financial institutions. Quality of service as well as user experience are poor, services are slow and inefficient, products and services are costly. Even if it is difficult to gauge the qualitative and quantitative impact Wikipedia has had on our productivity, it is undeniable there has been a positive impact. Even though it is difficult to gauge the qualitative impact of the financial services industry on financial wealth and health in the aggregate, it is undeniable the impact has been in certain instances negative.

    From a macro-industry point of view, Thomas Philippon, a professor of finance with NYU Stern School, recently wrote that, as per his analysis and research, the unit cost of financial intermediation had remained constant at 2% from 1886 til 2015, see here. This means that any intermediated asset has cost users 2 cents for every dollar AND has remained constant for well over a century! This is actually the greatest indictment of the financial services industry one could every come up with. Arguably, during this period the costs of many products and services in other industries have dropped while quality increased. Not so for financial services.

    To be clear, financial services firms have been innovators and they have become more productive as evidenced by the massive profits the industry has experienced. Shareholders and employees have benefited. (Even after the 2008 financial crisis, financial services profits have reached record highs. The banking industry alone hit a record of $ 1 trillion in profits worldwide in 2014.) The costs of financial products and services has not decreased for the end users. Further, as profits were more than adequate, the costs of delivering products and services did not decrease either.

    Innovation and productivity did occur, only for the industry itself though.

    When taking into account the massive scale of the financial services industry &8211; between 15% and 17% of total GDP depending the economic cycle and the exuberance of financial markets &8211; this has to result in major challenges for any economy. The primary function of financial services is to optimally allocate capital. In other words the industry needs to help us spend money, send money, receive money, invest money, save money, insure, in the best possible way. If the process whereby all these activities is essentially &8220;rigged&8221;, economic activity suffers. There are obviously high level considerations &8211; fiscal, monetary and political &8211; when analyzing the efficiency of financial services, especially from a macro point of view. I only focus on technology, innovation and the resulting business models that can emerge once &8220;real&8221; productivity takes hold, as opposed to &8220;rent-seeking&8221; productivity.

    One can argue that Venture Capital is one of the enablers of sea-changing innovation with the systemic application of new technologies. Indeed, the first wave of , emanating from the Silicon Valley and focused on backing direct to consumer models bent on competing against financial services incumbents was based on the oft successful VC/Entrepreneur strategy applied to other industries. That this first wave was not as successful as it was originally thought does not mean &8220;end-user centric&8221; productivity will not finally permeate financial services. On the contrary, it was a necessary first wave that shook the industry into action.

    Whether incumbent will successfully reinvent themselves, startups will win meaningful market share or partnerships between incumbents and startups is the way of the future is opened for debate. What is not open for debate, is the unavoidable imperative towards finally lowering the marginal cost of delivering financial products or services and eventually lowering the cost of products or services (within reason as one cannot lower the cost of borrowing for example).

    All the narratives unfolding under our very eyes &8211; digitization, platform as a service, chatbots, roboadvisory, alternative lending, APIs, cognitive banking or insurance, , faster payments&; &8211; are emanations of this unavoidable imperative.

    I recently checked US financial services payroll on the Bureau of Labor and Statistics&8217; website. Interestingly enough the US financial services industry employed approximately 8.5m people prior to the 2008 crisis. Employment stands now at around 7.9m and is expected to grow to 8.4m by 2020. I am puzzled by this forecast as I expect financial services industry payrolls to continue to decrease in developed countries (US and Europe included) as more inefficiencies are weeded out of the system. (Facebook employs 14,500, Visa employs 11,300 while BoA employs 210,000; there is still much to do.)

    No discussion about financial services productivity would be complete without mentioning regulation. Indeed, regulators can be viewed as having been complicit in the building of a rent-seeking industry. The rate of change of technology has accelerated to such a degree and consumer behaviors and expectations have changed to such an extent that financial services regulators cannot afford business as usual. Thusly the novel approach to innovation the Financial Conduct Authority has taken in the UK or the Monetary Authority of Singapore. Every regulator is now actively thinking or devising new ways of engaging the eco-system they regulate and this includes how innovation impacts these eco-systems.

    The lesson here is everyone is breathing fintech, from service providers to incumbents to regulators and startups, as a vector to deliver productivity gains.

    I want Thomas Philippon to run the numbers in 5 and 10 years from now, and I will be crushed if the cost of intermediating an asset will not have dropped to below 1%. How low can we go?


  • @fintechna 6:40 pm on September 3, 2016 Permalink | Reply
    Tags: , Blueprint, , , , Services   

    The Blockchain is Perfect for Government Services (Here’s a Blueprint) 

    In this op-ed, investor and author William Mougayar discusses why global governments should be – and increasingly are – embracing .The Blockchain is Perfect for Government Services (Here’s a Blueprint) fintech

  • @fintechna 6:40 pm on August 23, 2016 Permalink | Reply
    Tags: , , , , , , Services   

    Bank of Japan: Blockchain Could Alter Financial Services 

    ‘s central issued remarks this week that found it forecasting that come to have a fundamental impact on finance.Bank of Japan: Blockchain Could Alter Financial Services fintech

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