Getting an #installment loan for high-value transactions at the point of sale is nothing new. Venmoing (yes, it’s a verb now) a friend for your share of last night’s pizza is not a big deal either. But what if instead of a pizza, you need to pay someone for aRead More
Bank Innovation
A hedge fund that gives away all of its data to people it doesn’t know and still stays private. A virtual lab for smarter business solutions. Smart sales conducted from a smartphone with its own virtual assistant—these are all artificial intelligence projects expanding right now, and these are just theRead More
Bank Innovation
#Walmart, in partnership with Green Dot, today announced “Prize Savings,” a cash rewards savings program conducted through its Walmart #MoneyCard product. Walmart and Green Dot, which issues the retailer’s cards, partnered with national organization Commonwealth on the offering, a firm which has created PLS (Prize-Linked Savings) programs that have generatedRead More
Bank Innovation
PayPal is partnering with financial #technology provider FIS and Citigroup in order to provide better, faster, stronger digital payments to all users involved—financial institutions, payment processors, and banking customers, it was announced today. “It’s great that our clients can now extend this capability to their customers through PayPal,” says DougRead More
Bank Innovation
With the end of the year approaching, the amount of predictions for #2017 is steadily increasing. How will the industry develop and what will be the next big thing? Although A.I. (Artificial Intelligence), #Blockchain, RegTech are buzzwords everyone is talking about, one can foresee the next #Fintech #trends more realistically by looking at the current developments. Exactly they will determine the course for the next year. Three areas are of special interest
More SME #banking: Many Fintechs focused in 2016 solely on two customer groups: either the biggest banks or the private end customers. Many SMEs, however, had respectable profits. The issue is that digital financial products from payment providers and company credits to goods financing are missing.
These companies are too big for peer-to-peer lending and a traditional banking credit is costly and lengthy. More and more Fintechs are detecting the needs of SMEs (Small and Medium Enterprises) and are beginning to offer them solutions. The startup Valendo f.e., originally intended as digital pawn shop, is now offering an additional service of merchandise financing for online-retailers – an intelligent step for both the merchants and the company. Another example is the Fintech iwoca from the UK that offers tailormade loans for SME businesses (in the UK 20% of all SME loans are mediated by online-suppliers). In 2017, we will see a significant expansion of these services for SMEs through innovative Fintechs.
More B2B-solutions: In 2016, Fintechs grew up. In 2015, it was still difficult for Fintechs to find any open door within a bank. Today, more and more financial institutions are cooperating with Fintech companies that are faster and more efficient than the company-owned IT-departments. There is hardly any bank that has no digital lab to emulate fintechs. The consequence: The Fintech companies are continually improving their business models to meet the higher requirements. One example is the Berlin-based Fintech company FinReach: With its fully-digital account switching kit, it has already more than 100 German bank customers and is now starting its internationalization.
The big number of partner banks is a clear vote of confidence. This kind of trust is necessary if one wants to be successful in the B2B-industry. Not only that, but the industry requires professional employees. Ex-bankers with longstanding experience in the financial industry, including former board members, are now working for established Fintechs. The cool students may be the ones that invent a new pocketmoney app, but successful Fintechs have grown up. This growth will continue with even more strength in 2017, especially through the demands of complex B2B models.
More complex business models: Not only employees have become more professional, but also the setting of Fintechs itself. While the first ones started as hyped business models without a real business case, dependent on user’s goodwill, nowadays no Fintech starts without having applied for the necessary licenses from authorities and conducting extensive tests before launching. Instead of a “lean startup”, it is now from zero to a hundred. solarisBank, a tech platform with a full banking license, got its banking license before launching &8211; in the record time of only 9 months from the German Bafin.
Elinvar on the other hand has a B2B2C approach and offers private asset managers all the necessary modules to manage their portfolio digitally. With the help of an algorithm that can be fed with individual data, the asset manager is able to take care of a customer’s portfolio faster and in a more efficient way. B2B2C is not easy, because it requires on one hand the supplier’s trust and on the other hand must be well received by consumers. Moreover, it requires a thorough preparation of the product. 2017 will surprise us with more complex and high-quality Fintech models.
At least one thing was demonstrated in 2016: Fintech was and is not only a hype, but a development that needs to be taken seriously and drives the digitization and transformation of the entire financial industry. With new customer groups and new business models, 2017 has the chance to make Fintech accessible to even more professional fields. The course is set, now it is all dependent on the right drivers.
The post The Fintech Trends for 2017: SME Banking and More appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
Are you really sure I am not a dog? Maybe I am a really smart dog with an AI implant pretending to be a human. Disclosure, #Daily #Fintech is written by a stealth mode AI venture as a proof of concept. Seriously folks, you cannot know my #Identity. To readRead More
Bank Innovation
In the race of adopting #voice #technology in banking Capital One is certainly taking the lead (with not too many competitors on the horizon, to be fair). Microsoft unveiled the #Cortana Skill Kit, a set of tools, which will allow developers to leverage Microsoft bots and create new Cortana implementations, atRead More
Bank Innovation
It’s almost time to wave goodbye to 2016. This was a big year for #fintech, with new regulations, new startups, and new technologies displayed across events like Sibos and Money20/20, making it clear that the progress of fintech can’t really be stopped. But how will it continue? That’s the realRead More
Bank Innovation
#Android Pay is heading to the #islands, but not the ones you may be dreaming of on these dreary December days. Instead, Google’s mobile payments platform has landed in #Ireland and #Japan. The mobile payments platform landed on the Emerald Isle on Dec. 2 and is currently live with twoRead More
Bank Innovation
#Deutsche #Bank AG has hired two new #technology #leaders as the German bank seeks to boost #fintech development.
via Linkedin
Elly Hardwick, the former chief executive of Credit Benchmark, has joined Deutsche Bank’s London office as the new head of innovation, which includes oversight of all Deutsche Bank Labs.
The bank announced plans to open three Deutsche Bank Labs last year in Berlin, Silicon Valley and London. The labs are aimed at helping the organization apply new technologies to enhance its products, services and processes. It will help it innovate and deepening its relationships with #tech startups.
Hardwick will also work with fintech startups and the firm&8217;s business units to drive new technology adoption, the bank said in a statement last week.
Philip Milne, who previously was the CEO and founder of a Silicon Valley virtual reality startup, joined Deutsche Bank&8217;s Palo Alto office in November as chief technology officer for innovation. Milne has been acting as “an interface between the Deutsche Bank Labs and the bank&8217;s wider technology organization.”
Both Hardwick and Milne will report to JP Rangaswami, the chief data offer and head of strategy and innovation for the bank&8217;s chief operating office.
Deutsche Bank has been facing a number of headwinds and its increased focus on fintech is intended to help it shore up its capital position and stabilize its share price, according to the Wall Street Journal. The firm said earlier this month that it plans to cut roughly 3,400 trading clients a part of a broader restructuring designed to cut costs and restore long-term stability.
The Deutsche Bank Labs are part of the bank&8217;s Strategy 2020 under which it plans to spend up to EUR 1 billion on digital initiatives over a period of five years.
Deutsche Bank Digital Factory in Frankfurt, Germany, via DB.com
Alongside the labs, Deutsche Bank has also opened a Digital Factory in Frankfurt where it focuses on developing digital banking products. Around 400 software developers, IT specialists and financial experts from 14 nations were working together in the space as of September 2016. The bank plans to increase headcount to 800 by 2018.
In October, Deutsche Bank partnered with Misys for a five-year enterprise license agreement to deploy Misys FusionBanking Lending and Misys FusionCapital solutions across the business.
Misys’ FusionBanking Lending offering includes the Loan IQ back office platform for syndicated lending and the front-end that originates from Custom Credit Systems, a US-based provider of commercial loan software which Misys acquired in 2014.
The FusionCapital solutions include a number of treasury and capital markets systems acquired by Misys over the years: Opics, Summit, Kondor and Sophis’ Risque.
In September, Deutsche Bank teamed up with startup accelerator Axel Springer Plug and Play in Berlin to back banking and insurtech startups with cash and other support.
Upon completion of the program, which runs during 100 days, Deutsche Bank could decide to invest and partner with the companies. Investment would range between EUR 100,000 and EUR 500,000. The bank seeks to back and partner with roughly six companies by the end of 2017, according to the Financial News.
Matthaeus Sielecki, head of working capital advisory, financial technology, at Deutsche Bank, said in a recent interview that #banks and fintech startups must learn to co-operate to align strengths while addressing shortcomings.
&8220;In a highly regulated market such as financial services, neither type of organization can innovate and scale on its own,&8221; Sielecki said. &8220;Together, they can find the best ways of serving business customers in the digital age – by combining cutting-edge creativity with proven processes and infrastructure.&8221;
The statements echoed an extensive report released earlier this year in which Deutsche Bank calls for more collaboration between financial institutions and the startup community to leverage their respective strengths.
Featured image: Deutsche Bank Twin Towers, Frankfurt, Germany, via Wikimedia.
The post Deutsche Bank Names Two New Tech Leaders In Fintech Push appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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