Digital advisory — a.k.a. #robo advisory — is a trend to “watch closely,” according to Kate Randall Danella, #Regions Bank’s newest head of private #wealth #management. But adoption by the bank is likely years away. It’s a space we are watching closely and having conversations now. We look into howRead More
Bank Innovation
On April 6 2016, Daimler has let three of its autonomous trucks loose on the highway to complete a successful trip from Stuttgart to Rotterdam[i].
The ripples of such an achievement go beyond reducing congestion, cutting down CO2 levels and accidents caused by human error.[ii]
Combined with cryptocurrencies and #blockchain #technology, a new conceivable scenario will appear in the insurance industry were its products can be delivered based on new features through decentralized autonomous organizations – DAOs. Features that are designed to fit the autonomous economy we are heading for.
The DAO’s system consists of massive public ledgers that are able to communicate and transact with each other in a real-time mode. It will not only save the millions of dollars’ databases cost, but also reduce fraud to minimum. It can be built to attract 3rd party participants like insurance pool admins, sales, claim assessment, etc. and instead of working for an insurance company, members work for a piece of software!
Over the course of time, self-driving trucks will be practical reality with features that aid in lane shifts, parking, speed control, and highest safety rates for its occupants. We can expect accidents to occur due to harsh weather conditions and/or machine malfunctions. Hence the once dangerous and deliberate behaviors of humans such texting, reading, drinking, or even sleeping while driving are no longer be considered as “liability”.
Reducing all accidents and fatalities that arise from human error means fewer claims and that will tear down premium rating structure. DAOs can issue policies covering an autonomous vehicle with first-party coverage, paying for injury to the truck’s occupants or for the damage to the vehicle in case of an accident. Insurance premium can be relative to miles driven, and the “mode of driving” whether it was Autonomous or Manual – where Manual driving incurs much higher premiums. So tailgating a mini cooper carries very high risks that multiplies your premium by a hundreds.
Through algorithms built on top of the blockchain, policy holders have accounts tied to their #bitcoin wallets, in which premiums are deducted automatically in ratio to the miles driven. As long as bitcoins exist in the policyholder’s account, payments will be made and coverage exists. Low balances will be notified via the truck dashboard or any mobile phone, and the policyholder can terminate his policy any time with instant stopping of the open payment channel. The DAO is linked to the GPS systems of each autonomous truck and as soon as ON; they start reporting live data to the blockchain.
Oracles can feed the blockchain with information on miles driven, mode of operation, the make and model of the truck, weather statuses, and other considerable live data, of course including the occupants encrypted medical files and personal info. Accordingly, then a premium is set and its gets paid automatically.
Autonomous trucks are able to continuously monitor roads with a broad range of sensors like visible and infrared light, including ultrasound, with a nearly 360-degree field of view![iii]
The algorithm can gather the logs to determine which parts of the vehicle were damaged, and simultaneously compares price data for all replacement parts, order them from the factory, send a mechanic to the garage, and pay for all costs incurred. Therefore, the policyholder is guaranteed coverage on the truck for full replacement cost.
In addition, Algorithms can also distinguish between the truck movement characteristic in a genuine accident and staged one. If the movement of the truck coincides with previous Manual driving patterns related to fraud, the algorithm will simply deny claim.
High premiums are planned to discourage the engagement of Manual Mode, except in emergencies. So enjoying the thrill of Manual driving, could be felt on designated driving tracks were race truck shows are held. Arena insurance companies provide reduced coverage for Manual operation, as long as the truck is only driven on the track.
As the data transmission enables the DAO to identify the amount of damage to the truck, different information can help in accurately paying body injury claims.
Upon physical harm, the nature of the injury and the cost of the recovery can be reported on the medical blockchain, that also verifies the license of the Doctor who’s attending the injured person. Payments from DAO can be deposited directly into the Doctor’s bitcoin wallet.
We all envision autonomous trucks to operate on major highway corridors, yet insurance policies that fits this industry are key in welcoming them. Autonomous trucks will require Autonomous insurance – best delivered through a decentralized autonomous organization.
[i] http://www.gizmag.com/daimler-connected-autonomous-trucks-challenge/42631/
[ii] http://www.cato.org/publications/policy-analysis/policy-implications-autonomous-vehicles
[iii] http://insurancethoughtleadership.com/tag/autonomy/
[linkedinbadge URL=”https://nl.linkedin.com/in/tey-el-rjula-50b59242″ connections=”off” mode=”icon” liname=”Tey El-Rjula”], is corporate trainer on Digital Currencies and Blockchain and this article was originally published on linkedin
Swisscom/eforesight shows every month a very nice #overview with the #Swiss #Fintech #Startup Map Overview. Here the May #Update, now counting 180 (+4 vs March) Swiss Fintech Startups.
Swiss fintech Map 05/2016: observe, collaborate, connect, venture @Swisscom_B2B_de pic.twitter.com/YsLzHcriMA
— Johs. Hoehener (@JohannesHoehene) 16. Mai 2016
finance20 swisscom (03/2016) fintech-engagement: observe, collaborate, connect corporates, venture pic.twitter.com/tRFKsfWXHG
— Johs. Hoehener (@JohannesHoehene) 9. März 2016
FinTech Map Switzerland swisscom (02/2016) fintech-engagement: observe, collaborate, connect corporates, venture pic.twitter.com/ygiRnq3Wsr
— Johs. Hoehener (@JohannesHoehene) 19. Februar 2016
FinTech Map Switzerland swisscom fintech-engagement: observe, collaborate, connect corporates, venture pic.twitter.com/faREPHyWQc
— Johs. Hoehener (@JohannesHoehene) 25. Januar 2016
disruptfinance fintech – Swiss FinTech Startup Companies November 2015 pic.twitter.com/hmwGX4a6Jt
— Johs. Hoehener (@JohannesHoehene) 27. November 2015
157 Swiss FinTech startup companies in Switzerland fintech overview (November 2015), swisscom, Switzerland pic.twitter.com/htcG67mRE1
— Johs. Hoehener (@JohannesHoehene) 17. November 2015
Swiss fintech overview (updated September 15, 2015), swisscom pic.twitter.com/x5OKyHgIoo — Johs. Hoehener (@JohannesHoehene) 15. September 2015
The post The Swiss Fintech Startup Map Overview (May Update) appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
It looks like an #R3CEV–#Ripple partnership is in the works. This development could be a sign of the bundling of distributed ledgers and alliances between companies and consortiums in the space. The news was teased on Twitter today by Ripple CEO Chris Larsen: The future of #fintech is bringing #together like-minded companies,Read More
Bank Innovation
#Venmo’s most popular emoji – shared on average over 49,000 times per week – is the pizza slice , Paypal Holdings Inc. said during its analyst day presentation on Wednesday. Of more significance (probably) is the 154% year-over-year growth that Venmo recorded in the first quarter of 2016, hitting $ 3.2Read More
Bank Innovation
The hits are coming in for 2016, which is shaping to be The Year of #Fintech. Just recently DBS launched Digibank, their forward thinking mobile only offering, and now Fidor and Telefonica have done something very similar in Germany. Although, there’s something missing here.. hmm, I can’t quite put my finger on it. Oh wait, I got it!!
This is a real bank, yet
there’s no bank involved!
This is that watershed moment we’ve been waiting for. We will look back in a few years and think it normal to do banking without #banks, but years of research, development, positioning, lobbying, legislation, failures and breakthroughs have taken place to get here. So let’s break it down. What the heck is so special here, isn’t this just another digital wallet…?
I’ve already heard a few people compare this to previous tie-ups with banks and telcos. There are several examples around the world. In Singapore, the collaboration of Singtel and Standard Chartered springs to mind. There’s a natural synergy there, to provide simple mobile payment or wallet facilities through the telco channel. Co-branding and co-marketing. Throw in contactless for added innovation points. Yay. Yawn. It was solid marketing. Transformative? Disruptive? Not so much.
We’ll call you, don’t call us
This is different. Instead of opting to leverage an established financial services brand, like a bank, Telefonica is effectively doing their own thing. By partnering with a startup in Fidor, they call the shots. Make no mistake, Fidor is a provider to Telefonica, not the other way around.
For Telefonica, this move represents a new revenue stream, increased revenue per user, and opportunity to create stickiness with their customers. How many of their telco competitors also offer you banking services? Uhh. Yeah not many. Actually, ZERO! Globally! Not often you see that these days.
Cool, so what is it, some kind of app right?
Not a mobile wallet!
Fidor has been busy for years building a complete offering, including their own banking license, which is a feat in and of itself. Yes this initial service is for Germany, but Fidor’s license is valid across Europe! Imagine that! When’s the last time you saw a Fintech startup in Asia with a license across the region? The answer is never! A few hopefuls like Bambu, Tryb and Marvelstone are paving the way…
(photo credits: REUTERS/Lucas Jackson)
What mobile wallets are to Fidor
That’s what makes this so different. It’s a real bank. Not a quasi financial wallet thingy that you have to top up at 7-Eleven, and can only buy things at compatible vendors with some special payment terminal. Pfft, I say! This is a real bank account, on your phone. Yes it’s an app, just an app. That means no branch, no queues, no crap. You get a virtual credit card by Mastercard, and they’re even doing small loans! Not your father’s mobile wallet, then!
Let’s talk about KYC baby
Know. Your. Customer. If banking is the least sexy field to work in, the compliance team is the least sexy division inside a bank. KYC is the thing they like to do the least. So, gives you an idea.
I want to do KYC when I grow up.
– said no one, ever
The burden of all financial institutions is regulation and compliance. Nobody wants it, but everyone needs it. Customers need it. Banks need it. Governments need it. It’s necessary so that firms don’t get greedy and accidentally fund hippies, terrorists and the like. The result is piles of paperwork, multiple layers of authentication, and bags of tokens for every occasion. So what is Fidor doing in this area?
Full online onboarding, supposedly in “a few minutes”. No paper. No meetings. As an interesting addition, they are using a video link inside the app to verify identity. Let’s see if that approach catches on. They could be onto something here… MAS, wink wink.
Telco customers
So what’s in it for Fidor? Why not go at it alone and challenge all the institutions? Because B2C is haaaaard. As a startup, you’re that guy on the street handing out discount leaflets that nobody wants. Nobody wants to be that guy. So don’t be that guy. Increasingly, startups are looking to leverage institutions for that very reason. Institutions already have customers. Why reinvent the wheel, when you can just use theirs?
Don’t be that guy in the popcorn suit
One of the more innovative things Telefonica have done is to incentivize their existing users to adopt their banking app. For example, you might get additional free data on your 4G plan as a reward. Synergy, convergence and gamification. Hmm.. I wonder where could this go..?
Where to from here?
If you haven’t heard, two banking licenses were handed out in Korea in 2015. One was a telco. The other a chat app. Tencent and Alibaba already have banking licenses in China. Expect big things. Dinosaur big.
[linkedinbadge URL=”https://www.linkedin.com/in/akiranin” connections=”off” mode=”icon” liname=”Aki Ranin”], is Commercial Director at Tigerspike and this article was originally published on linkedin
Im Jahr 2015 ist der Schweizer #Crowdfunding–#Markt erneut stark gewachsen. Im Vergleich zum Vorjahr stieg das Volumen der vermittelten Gelder um 73 Prozent auf 27,3 Millionen Franken. Auch für das laufende Jahr erwarten die Studienautoren noch einmal ein markantes Wachstum.
Insbesondere Crowdlending für KMU und Real Estate Crowdfunding werden dazu beitragen, ebenso die stetig wachsende Anzahl an Crowdfunding-Plattformen. Das «Crowdfunding #Monitoring #Schweiz 2016» analysiert erstmals auch Beweggründe von Projektunterstützenden.
Wer auf der Suche nach Geld ist für ein Start-up, eine Jugendkulturinitiative, eine Filmproduktion oder ein Engagement im Umweltschutz, wird #immer häufiger auf Crowdfunding-Plattformen fündig. Das zum dritten Mal vom Institut für Finanzdienstleistungen Zug IFZ der Hochschule Luzern durchgeführte «Crowdfunding Monitoring Schweiz» zeigt, dass sich diese alternative Form der Geldvermittlung zunehmend durchsetzt und auch im letzten Jahr wieder sehr stark gewachsen ist:
Obschon im Vergleich etwa zu den USA oder Grossbritannien das Volumen der vermittelten Geldbeträge nach wie vor klein ist, hat es sich in der Schweiz seit 2011 fast verneunfacht auf 27,3 Millionen Franken im 2015. Gegenüber dem Vorjahr bedeutet das ein Wachstum von 73 Prozent. Für die Analyse wurden die Daten von 31 in der Schweiz aktiven Plattformen berücksichtigt. Sie werden in vier Kategorien unterteilt (Details siehe Box): Crowdinvesting (Geld gegen Unternehmensbeteiligung), Crowdlending (Geld gegen Zins), Crowdsupporting (Geld gegen Güter/Dienstleistungen) und Crowddonating (keine direkte Gegenleistung).
Wie schon 2014 ist auch 2015 der Bereich Crowdlending am stärksten gewachsen, nämlich um ganze 127 Prozent. «Dieses starke Wachstum hängt vor allem mit dem Markteintritt von Plattformen zusammen, die nicht nur Privatpersonen, sondern auch KMU ermöglichen, via Crowdfunding an Kredite zu gelangen», erklärt Co-Studienleiter und Finanzprofessor Andreas Dietrich. Im Bereich des Crowdinvesting, der um über die Hälfte zugelegt hat, ist seit 2015 ebenfalls ein neues Angebot entstanden: das sogenannte Real Estate Crowdfunding, bei dem man anteilsmässiger Miteigentümer von Immobilien werden kann. «Sowohl beim KMU-Lending als auch beim Real Estate Crowdfunding fliessen grosse Summen, was sich auf das gesamte Volumen ausgewirkt hat», sagt Dietrich.
Crowdsupporting/Crowddonating ist mit 12,3 Millionen Franken an vermittelten Geldern aber nach wie vor die volumenmässig bedeutendste Kategorie. Beachtliche 5,5 bis 6 Millionen Franken entfallen dabei auf die Kultur- und Kreativwirtschaft. Ein entscheidender Grund für das allgemeine Wachstum ist die Anzahl der Plattformen sowie die stärkere Verankerung von Crowdfunding bei der Schweizer Bevölkerung. Waren 2013 erst 14 Plattformen in der Schweiz aktiv, hatte sich diese Zahl per Ende 2014 verdoppelt. Im April 2016 wurden bereits 40 Plattformen gezählt. Insgesamt haben im letzten Jahr über 90‘000 Personen Crowdfunding-Kampagnen finanziell unterstützt. Die Studienautoren schätzen, dass seit Bestehen von Crowdfunding in der Schweiz rund zwei Prozent der Schweizer Bevölkerung diese alternative Form der Geldvermittlung unterstützt haben.
Erstmals führte die Hochschule Luzern auch eine Umfrage unter Projektunterstützenden – sogenannten Backers – durch. Ziel war es, deren Motive und Charakteristiken zu erforschen. Das Forschungsteam wertete die Antworten von über 430 Backers aus. Die Analyse zeigte, dass Frauen häufiger als Männer Projekte mitfinanzieren, dass Backers tendenziell älter als 35 Jahre sind und eher in Städten als auf dem Land leben. Im Bereich von Crowdsupporting/Crowddonating sind die Motive mehrheitlich altruistischer und ideeller Natur. Massgeblichen Einfluss hat weiter die persönliche Bekanntheit mit dem Geldnehmer. Beim Crowdlending und Crowdinvesting stehen finanzielle Motive hingegen klar im Vordergrund.
Für das Jahr 2016 erwarten die Studienautoren eine weitere Beschleunigung des Wachstums auf etwa 65 Millionen Franken. «Insbesondere KMU-Lending und Real Estate Crowdfunding werden für höhere Volumen sorgen», sagt Dietrich. «Wir rechnen aber auch im Bereich Crowdsupporting mit weiterem Wachstum, weil der Bekanntheitsgrad in der Schweiz mittlerweile sehr gross ist.»
Das «Crowdfunding Monitoring Schweiz» wird vom Institut für Finanzdienstleistungen Zug IFZ der Hochschule Luzern in Kooperation mit Swisscom und mit Unterstützung der Schweizer Crowdfunding Plattformen jährlich durchgeführt. Folgende Plattformen haben die Studie in Form von Daten unterstützt: 100-days, Bee Invested, Cashare, c-crowd, CreditGate24, creditworld, Crowdhouse, Fengarion, Gemeinsam unterwegs, GivenGain, «ibelieveinyou», «icareforyou», International Create Challenge, investiere, Lend, Lions Funding Val Müstair, Masspurse, Miteinander erfolgreich, moBOo.ch, Progettiamo, Projektstarter, Raizers, Sosense, splendit, Startnext, Stoneclub, Swiss Starter, Swisspeers, Wecan.Fund und wemakeit.
Auf http://www.hslu.ch/crowdfunding kann die aktuelle Studie kostenlos heruntergeladen werden.
The post Crowdfunding Schweiz Monitoring: Immer mehr Crowdfunding-Plattformen drängen auf den Markt appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
A distributed ledger could #help these #researchers launch an unstoppable “Human-Whale-Robot-Hybrid” distributed autonomous organization.
fintech techcrunch
While #bitcoin has long dominated the digital currency space, #ether has been grabbing headlines – and #trading volume – this week.
fintech techcrunch
The #Alternative #Fintech Lexicon
– Accelerators: Where startups go to learn. What they learn is anybody’s guess. See Decelerators.
– Alternative Lending: An alternative way to make the same mistakes in lending, over and over again. See Crowdfunding.
– Anonymity: Required when discussing either financial services executives bonuses or the use of offshore centers when optimizing taxes and ownership structures. Not required when users interact with financial services firms. See Privacy.
– AML (Anti Money Laundering): A set of procedures, laws and regulations financial services firms occasionally follow and regulators occasionally enforce. See KYC.
– API (Application Programming Interface): A set of routines and protocols Wizards use to develop magical and frictionless interaction between software applications. Alternatively, an acronym Muggles use when pretending to be wizards.
– API Call: A call muggles make to a private fintech investigator when trying to crack innovation, as in “I think I I am going to make A Private Investigator Call now as this digital innovation thingie is very tricky.”
– Artificial Intelligence (AI): Neither Artificial nor Intelligent. A major vector for future unemployment in the financial services industry.
– Augmented Reality (AR): Where the sex industry and the financial services industry will eventually meet.
– Big Data: Applied to most data analytics projects to produce negative returns.
– #Bitcoin: A Numismatist&8217;s worst nightmare.
– Bitcoin #Blockchain: A group of digital prisoners, chained to one another, and bound to perform menial digital tasks recorded on a digital ledger in return for the promise of a better future life.
&8211; Brick and Mortar: A Financial Services Incumbent&8217;s Alzheimer&8217;s moment.
– Cards: Credit, Debit, Reloadable, Gift. The most profitable scam in the history of the financial services industry.
– Card Not Present / Card Present (CNP/CP): Arcane revenue producing schemes for the payment industry.
– Checking Account: Soon to be yesterday&8217;s money machine.
– Conferences (Fintech): Gathering places where thought leaders pretend to educate, startups pretend to pitch, corporates pretend to care, venture investors pretend to scout for investments. Contrary to popular belief, pizza is not served freely at conferences. See Hackathons.
– Consensus Ledgers: Free range Blockchains. Also, for the accountants in the audience, not a ledger. See Bitcoin Blockchain, Ethereum.
– Consensus Machines: Free range Consensus Ledgers, bred with organic Turing corn.
– Core Systems: The tools with which service providers keep #banks, insurance companies, asset managers hostages.
– Corporate Venture Capital (CVC): The art of pretending superior investing will occur when informed by corporate fiat. Alternatively, the science of Fin over Tech. See Venture Capital (VC).
– Crowdfunding: Applies to either equity or lending. The art of pretending it takes a crowd to finance stuff. See Alternative Lending and Equity Crowdfunding.
– #Cryptocurrency: A currency which adheres or belongs secretly to a party, sect, or other group.
– Customers: The one thing most fintech startups are still looking for. See Traction.
– Decelerators: Where startups go when they move too fast. See Accelerators.
– Digital: Related to the storing of information as either a 0 or a 1. Example of a 0: &8220;Soon we will have zero brick and mortar branches&8221;. Example of a 1: &8220;Banking executives compensation is again approaching 100% increases.&8221;
– Digital Banker/Insurer/Asset Manager: Tomorrow&8217;s endangered species.
– Disintermediation: The act of creating another overlord as in &8220;My API will rule over your API.&8221; See API.
– EMV (EuroPay, MasterCard, Visa): A technical standard built to promote online fraud.
– Entrepreneur: Central protagonist in ancient Greek tragedies or comedies involving the critique of money. Alternatively, a post Marxist practitioner. See Startup.
– Equity Crowdfunding: Platforms that may provide much work for litigation lawyers in the future.
– Ethereum: A public blockchain platform which promises to free digital prisoners shackled to other public blockchains. See Bitcoin Blockchain.
– Ethics: An extraordinary expense that appears below the EBITDA line both in GAAP and IFRS.
– Financial Inclusion: An issue solved by #technology according to blockchain enthusiasts. A profitability issue according to financial services incumbents. A game changer according to social impact investors.
– Fintech: Neither &8220;Fin&8221; nor &8220;Tech&8221;. Modern day alchemical process.
– Fraud: The act of defining loose operations control in order to elicit fraudulent activities which will eventually be billed at cost plus to the end user. In the payments industry, the tradeoff between convenience and privacy.
– Free: A new &8220;source of revenue&8221; paradigm, e.g. free trading, free investing, free payments. To be noted, free fraud is not yet recognized as a new source of revenue.
– Gateway: A purgatory software interface where payments transit before reaching heaven.
– Governance (in Fintech): What often lies beyond the wall.
– Hackathons: Events that bring fintech developers, designers, corporate executives and innovation managers together around pizza. Hackathons organized around the summer solstice are sought-after events, as it is believed pizza tastes better during that period of the year.
– Hash: Non-edible but still intriguing recipe comprising mathematical algorithms that map data of arbitrary size to data of fixed size. Frequently used in the Insurance industry as exemplified by the old saying &8220;The actuary made a hash of the life expectancy of millennials.&8221;
– Incubators: Where corporations are able to smother good fintech ideas to death.
– Innovation: What VCs overpay for. What corporations are seldom capable of delivering. What only a few startups can deliver.
– Insurtech: Ego booster term crafted for the Insurance industry. See Fintech.
– Interchange Fee: Soon to become a land far far away, especially in the US.
– Interest Rate(s): A conceptual think piece for most fintech startups. Baudrillard&8217;s famous tirade comes to mind when addressing the Sorbonne in 1968, &8220;If interest rates were so important we would have used the term FinInt or IntTech, not Fintech.&8221;
– Jinn: Spirit capable of appearing in human or animal form and influencing VC investors, corporations and startups alike via consulting analysis, recommendations, white papers. See White Papers.
– Joy: What fintech startups seldom experience. Referred to in the context of an Initial Public Offering (IPO).
– Know Your Customer (KYC): The process whereby a business weighs the cost of verifying a client&8217;s identity against the profitability of said client. For a fintech startup, that which will be developed and financed when the sooner of a cease and desist letter from a regulator is received or a $ 100 million funding round is closed, maybe. See AML.
– Lead Generation: A poor man&8217;s version of revenue building.
– License(s): Put or Call Options that give a regulator the right but not the obligation to levy fines in the future based on real or perceived violations of the terms of the license granted.
– Menagerie: Pack of Thought Leaders focused on cornering the market for social media power ranking and industry top lists via &8220;elaborate&8221; insider trading techniques. See Thought Leader.
– Millenials: What fintech startups say they focus on and financial services incumbents know they have no clue about. See Customers.
– Mobile Wallet: Darwinian evolution of a checking account. That which will generate revenue, but not necessarily to financial services incumbents.
– Near Prime Credit: A set of customers who are sub prime but for marketing purposes are labelled near prime as copywriting and creativity is important in the lending industry. See Sub Prime.
– Net Interest Rate Margin (NIM): The wet dream bankers and insurers dream every time they sleep.
– Network effect(s): Often talked about, seldom witnessed in the financial services industry.
– Non Performing Loans: According to alternative lenders, crowd lenders, p2p lenders, marketplace lenders, a mathematical impossibility.
– Non Traditional Data Sets: Data sets you would not want your mother to know about, let alone look at.
– Omnibus Account: A money-carrying vehicle, originally horse-drawn. Most bank-operated omnibus accounts are allegedly still operated manually and horse-drawn.
– P2P: A business model that allows people or entities that have nothing in common to do business with one another. From the word &8220;peer&8221; which means &8220;complete stranger&8221;.
– Payday Lending: The act of producing indentured servitude.
– Paying Customer: The rarest of species, seldom observed in the wild by startups.
– Payments: Payments come in two varieties. The &8220;slow&8221; variety which refers to the medical condition whereby financial services incumbents produce revenue via the sloth-like pace of provisioning of payments. The &8220;fast&8221; variety which refers to a simple technology feat which most financial services firms pretend is impossible to achieve.
– Payment Network(s): Money printing machines.
– Personal Financial Management (PFM): Movement originally triggered by the wealth transfer mechanism that occurred between Intuit shareholders (buyers) and Mint shareholders (sellers).
– Platform(s): The shoes many incumbents want to wear.
– Prime Credit: A set of customers lenders desperately would like to lend to but never do as these customers seldom need credit. See Near Prime.
– Privacy: What is enforced after weighing the cost of breach and compliance against executives bonuses as in &8220;We only had to pay $ 10 million fine for the latest data breach&8221;. See Anonymity.
– Proof of Work: An emerging contributor to global warming.
– Quantum Computing: That which will render many things and many people redundant.
– Rails (Payment): Train tracks over which steam locomotives shuffle back and forth wagons chock full of payments.
– RegTech: Because regulators should have their tech too. Alternatively, because why not.
– Regulator(s): Satan and his minions, unless they use technology. See RegTech, White Walkers.
– #Robo Advisors: Not a robot. Not a financial advisor. Fancy term for a digital channel.
– Scaling: The ability to gain traction in unique ways in fintech, e.g. &8220;Startup bankruptcies tend to scale well.&8221;, &8220;NPLs scale with ease in a down credit cycle.&8221;
– Smart Contract: Neither smart, nor a contract. For a blockchain developer, nirvana. For a lawyer, anathema. It is believed that through selected breeding a new specie of lawyer/developers will be created thereby enabling the wide adoption of smart contracts.
– Spice: A highly addictive Melange which fintech celebrities &8211; VCs, entrepreneurs &8211; consume daily and heightens their awareness and prescient abilities. Repeated exposure to &8220;Up&8221; Spice mutates fintech celebrities bodies into virtual social media avatars. Repeated exposure to &8220;Down&8221; Spice is deadly.
– Startup (Fintech): Ancient Greek play. Can either be a tragedy or a comedy. Focused on exploring and expanding upon a post Marxist critique of money. See Entrepreneur.
– Sub Prime: A set of customers that even copywriting cannot disguise and that, with the help of advanced data analytics, will yield positive returns, up to a breaking point. See Big Data.
– Token(s): Reduces fraud, makes EMV obsolete, helps with authentication and authorization of transactions in the payments industry. In other words, a really cool and useful thing which explains why it is so darn difficult to adopt industry wide.
– Traction: The startup science of demonstrating progress in the absence of Customers. See Customers.
– Thought Leader: Rhetorician who occasionally attends conferences for the pizza, not realizing hackathons are where the dough is. See Menagerie, Conferences and Hackathons.
– Uberization: An event that simultaneously holds the lowest probability of occurrence and the highest probability of utterance in fintech.
– Underbanked: A universe of people and businesses that refuse to comply with traditional profitability measures as defined by financial services incumbents.
– Unicorn: Animal hunted for its skin by rational investors. Alternatively, animal bred for its magical properties by irrational investors.
– Valuation: A +/- rounding error. Also, one of the key ingredient of Spice. See Spice.
– Venture Capital: The art of pretending superior investing will occur when informed by market fiat. Alternatively, the science of Tech over Fin. See Corporate Venture Capital (CVC).
– Veteran: Old hand operator with minimum 30 years experience in the financial technology industry and minimum 4 credit or business cycles under his/her belt. There are few veterans in activity. The only credible actors to be equally efficient and effective at either of fintech investing, fintech startup building, fintech innovation. One can recognize a veteran based on his/her use of profane language and colorful views on his contemporaries.
– Wallet: What any participant in the industry wants to &8220;share&8221;, as long as it is not theirs, as in &8220;Our share of the customer wallet is important for our future health.&8221;
– White Papers: Exercise in casuistry.
– White Walkers: Government officials who hold the power to resurrect dead banks but not yet the power to resurrect fintech startups to the dismay of VC investors.
– Xanadu: An idyllic place otherwise known as the Silicon Valley. &8220;In Xanadu did the great VC Khan / A stately pleasure dome decree&8221; is a alternative copycat poem published in the 19th century describing fintech venture investing and venture eco systems.
– Yield: See Interest Rate(s).
– Zelig: Describes the act of mimicking the fintech activities of leaders, as in a &8220;me too&8221; fintech VC or a &8220;me too&8221; startup. For example &8220;This fintech venture fund is so zelig!&8221;
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