It seems as though #fintech-ers are more interested in chatbots than #blockchain these days, but that doesn’t mean distributed ledger #technology has slid out of the spotlight. Blockchain startup #Chain made waves at the recent Money20/20 event when it announced what it’s calling the Chain Core Developer Edition: basically theRead More
Bank Innovation
The #banking industry for a long long time enjoyed strong barriers to entry. It was difficult for new #banks to start – licensing and regulation kept new entrants away. As a result banks enjoyed low customer switching, which in turn, allowed it to earn high returns on capital over extended periods. Banks could easily get 16-18% returns.
#Fintech is now changing this industry. New Fintech startups are launching discrete banking products that disrupt that particular segment of banking services. For example, Digital Wallets is disrupting credit/debit cards.
Lets take a look at how Digital wallet is disrupting credit cards. In India, Digital wallets such as PayTM, Mobiwiki & others are at a stage where number of transactions over digital wallet will exceed the number of payments done on credit & debit cards.
The rise of digital wallets is changing the industry’s dynamics. By 2017, more number of transactions will be done over digital wallets than with the older credit or debit cards.
Source: scroll.in
As digital wallets gain preeminence, digital wallets can morph into credit cards, and offer credit to customers and even merchants who accept digital wallet payments.
Today most consumers who use digital wallets such as PayTM also use credit/debit cards to transfer money from their credit/debit cards to their wallets & having a credit card like facility available on their digital wallet will make them stop using credit/debit cards.
Digital wallets uses cloud computing and captures all the transaction data to analyze customer or merchant usages. Based on this transactional information, a credit score can be developed and against which loans or business lines of credit can be issued.
In short, digital wallets will completely disrupt and swallow debit & credit card business of the banks.
[linkedinbadge URL=”https://www.linkedin.com/in/arun-kottolli-24ba881″ connections=”off” mode=”icon” liname=”Arun Kottolli”] is Product Portfolio Strategy at Hewlett Packard Enterprise
Claudio Schneider (43) stösst per 1. November 2016 als #Partner zum Team der Kreditver- mittlungsplattform #LEND. Schneider bringt über 17 Jahre Erfahrung im Investment Banking mit. #Für die Barclays Capital leitete er das institutionelle Fixed Income Credit Geschäft in der Schweiz.
Davor arbeitete er als Senior Credit Trader und Risikomanager für die UBS Investment Bank in London. Neben Unternehmensanleihen und -krediten umfasst seine Expertise Kreditderivate sowie die Verbriefung von Kreditforderungen. Er ist mit den Be- dürfnissen institutioneller Investoren somit bestens vertraut.
Claudio Schneider, Partner von LEND
Schneider wird bei LEND sowohl auf operativer als auch strategischer Ebene involviert sein. Er wird sich schwerpunktmässig mit der Akquise von institutionellen Investoren be- fassen. Diesen Bereich will LEND weiter auf- und ausbauen: Das #Fintech-Start-up sieht re- ges Interesse von institutioneller Seite am Peer-to-Peer-Lending. Auch Pensionskassen und Versicherungen wollen von der neuen Möglichkeit Gebrauch machen, direkt in Kreditpro- jekte investieren zu können, zumal die Kosten der Direktanlage viel tiefer sind und die Returns dementsprechend attraktiver.
Schneider reiht sich bei LEND in ein Expertenteam mit fundierten Kenntnissen in der klas- sischen und der digitalen Finanzbranche ein. LEND bringt auf seiner Kreditvermittlungs- plattform Kreditnehmer und Geldgeber direkt zusammen und macht die Bank als Vermitt- lerin überflüssig.
Featured Image: LEND.ch
The post LEND wächst – ein neuer Partner für das Zürcher Crowdlending-Start-up appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
This week saw the release of The #Fintech 100, a collaborative report put together by H2 Ventures and KPMG. The report takes a global look at the 50 established fintech businesses and 50 emerging stars and is a must read for anyone wanting to understand the industry landscape. Behind lendingRead More
Bank Innovation
The Swiss are world leaders in many things: watches, chocolate, Swiss Army knives and wealth management. Although the world of Swiss private banking has had more downs than up lately, wealth management is in the national DNA. There is good reason to see the Swiss coming out on top as private banking reinvents itself as a more digital product. Amongst the Swiss #banks, UBS is well set up to lead the pack; its recent announcement of its intentions in the UK: “UBS to launch digital wealth management platform in Britain” offers much promise, as does history, or rather deja vue.
In the #FinTech world, several different terms are used to describe expected changes or influences on the same thing: Digital Wealth Management. #Robo-Advisors. Machine Learning are all being applied in relation to what commentators see will be the future in the world of asset or wealth management.
In essence, this is about applying more advanced processes to the matter of looking after people’s money; making the interaction between bank and clients function faster, better and cheaper via mobile and internet channels, using rules to drive investment decisions and using AI, artificial intelligence, or Machine Learning to learn lessons and fine tune those decisions. For all the new terms and new #technology, the underlying core banking discipline is not changing;
Swiss banks have been managing money on this basis for a very long time. There is an ingrained culture of formally setting investment strategies based on investing goals; growth, balanced, capital preservation and of dealing with the multi-currency needs of an international clientele.
The theory is underpinned by solid back-office processes, for example in investment controlling, making sure that the investment guidelines are followed. Having been the product manager for a Shariah complaint cash management fund, I have seen this working first hand at Credit Suisse. Asset servicing is another discipline where the Swiss excel; the international client base means the banks have a very diverse set of asset information and detail to keep on top of. Prices, corporate actions and dividend information are all effectively gathered and processed.
Historically, the Swiss have not been that efficient; fat, super-normal, profits bloated by lots of offshore, black money have masked high costs and poor processes. The game plan worked as long as the vast majority of those assets were processed on the big, old-iron, mainframes in Switzerland. Neither UBS nor Credit Suisse managed too build really great platforms for offshore processing that would replicate the efficiency of the HQ machinery. In the US, firms such as Vanguard have led the way in offering low cost investment vehicles.
So, the core already exists as the industry transitions to another generation, both of clients, technical capabilities and regulatory requirements. The challenge is to adapt. According to head of digital at one of the major banks, the key challenges are:
In thinking about where the industry is headed, I had a sense of deja vue. In the early nineties, securities lending, or Stock Borrow & Loan as our American cousins like to call it, became possible in Switzerland. The challenge was to to open up all the “internal drawers” where the security positions were filed away and channel the aggregated holdings to the market. The assets were there, they just needed to be connected up and channeled to the borrowers. UBS, or rather the then SBG, led they way. Led by the charismatic Felix Oegerli, a very capable team added a great deal to the industry. Credit Suisse had the same starting position, but could not get out of the starting blocks. From days at Goldman Sachs, where we were active borrowers, I recall a time lag of about two years between the first deals with the leaders at UBS and the laggards at Credit Suisse.
Another recent announcement UBS’s private banking arm suggests the bank is taking the steps to simplify their infrastructure: “UBS’ European Bank Finds a Home”
Lessons Learned: Digital private banking is really the world of what the academics call the “adjacent possibles“. What is close to what we are already doing?
Apple did not invent MP3 music storage, they innovated around it, creating the iPod and the iTunes music store. Apple was not a start up when it made that move. In the mid aughties, Credit Suisse, then under the leadership of the ex McKinsey duo of Lukas Muehlemann and Thomas Wellauer pursued a “mass affluent” strategy. This was based on “bricks” rather than “clicks”. That was an idea ahead of its time. The “mass affluent” will not pay 100 basis points or more for advice. What they will pay will support a “clicks” based approach, but not a “bricks”based one.
There is wonderful advert for Ricola, a Swiss company which makes lozenges. The main character pops up to challenge others around the world making claims to have invented the sweet, challenging them: “Who invented it? The Swiss!”
My money, well at least the deeply out of the money options my wife has as a UBS employee, is on the Swiss mastering this evolution and UBS leading the pack.
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[linkedinbadge URL=”https://www.linkedin.com/in/bankersplumber” connections=”off” mode=”icon” liname=”Olaf Ransome”] is Bankers`Plumber | Intraday Liquidity | Cash Management | BCBS 248 | CLS Programme Manager
Americans are quite happy to look at #nonbank #lenders for #their borrowing needs, but that doesn’t necessarily mean they distrust #banks. A recent J.D. Power survey of small business owners released some startling figures — startling to banks, that is. Most #borrowers, specifically small-business borrowers, consider nonbank lending options for their financingRead More
Bank Innovation
#Peer-to-Peer Lending is emerging in #India and will be successful if the Credit quality on these platforms have a reasonable default rate and provide good returns to the lenders.
Peer-to-Peer Lending is a new asset class and it is important to create Awareness, Education and Understanding for lenders on how to proceed further to add #P2P lending in your investment portfolio.
At Citibank Consumer Bank, where I worked for close to 20 years, I learnt a concept of “Negative Self Select”.
In simple terms “Negative Self Select” means customers who choose your product and brand have poor credit track record. If most of the poor credit profile are choosing your product or brand your portfolio quality is bound to perform poorly over time compared to the industry peers.
Then the question arises, What leads to “Negative Self Select” ?
As a Bank, we used to have 3 key criteria to understand if we were a potential target of “Negative self select”.
They were:
These 3 criteria could work in combination or stand alone. It is quite logical that the best customer would not want to be inconvenienced by Heavy documentation, wait for long or pay higher cost for borrowing until and unless s/he does NOT have a choice.
Only, poor credit quality customers would go through these inconvenience as they do NOT have a choice.
However, for Peer-to-Peer Lending platform there are 2 more challenges:
At Monexo (http://www.monexo.co/in), we have solved for all of them before we launched our platform, namely:
We are building a new paradigm for borrowers and lenders with our 3D’s – Digitial, Data Science and Democratisation of Finance at Monexo (http://www.monexo.co/in). Visit us, talk to us and engage with us in our vision of “making borrowing more affordable and investing more rewarding.”
Die #Crowdfunding–#Plattform ideenkicker.ch des Gemeindeverbandes Lebensraum Lenzburg Seetal (LLS) und der Hypothekarbank Lenzburg bringt Ideengeber sowie Ideenunterstützer zusammen. Erstmals wird darauf auch ein Infrastrukturprojekt der öffentlichen Hand zur Schwarmfinanzierung ausgeschrieben.
Ideen verwirklichen? Spannende Projekte unterstützen? Gemeinsam die Region Lenzburg-Seetal stärken? . Auf der Plattform finden Projekte und Ideen ihre Unterstützer. Einzelpersonen, Teams, Vereine, Institutionen, Unternehmen oder die öffentliche Hand aus der Region Lenzburg-Seetal profitieren vom einzigartigen #Online-Treffpunkt.
Die Plattform nutzen Ideengeber für die Kommunikation ihrer Projekte und die Suche von Geldgebern, Ideenunterstützer finden darauf regionale Ideen und Projekte, welche finanzielle Unterstützung benötigen.
„Mit #ideenkicker.ch schafft der LLS gemeinsam mit der Hypi eine Plattform, welche der Grundidee unseres Verbandes entspricht: der Vernetzung und Unterstützung von regionalen Massnahmen und Projekten und der Erhöhung der Standortqualität“, freut sich Daniel Mosimann, Präsident des LLS. Für Marianne Wildi, Vorsitzende der Geschäftsleitung der Hypothekarbank Lenzburg AG, ist das Engagement ihrer Bank ein weiteres Zeichen für die regionale Verbundenheit.
„Die Zusammenarbeit mit dem LLS in diesem Projekt hat sehr gut funktioniert. Wir sind überzeugt, mit der Online-Plattform einem Bedürfnis der regionalen Bevölkerung zu entsprechen.“
The post Neue Infrastruktur Crowdfunding Plattform ideenkicker.ch geht online appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
LAS VEGAS — #Bank of America announced its new #chatbot, #erica, yesterday at Money20/20 here. Erica should roll out for BofA #digital and mobile #banking users “late next year,” according to a spokeswoman from the bank. At an event where chatbots were one of the main topics of interest for many ofRead More
Bank Innovation
lanciert das Luzerner #Fintech-Unternehmen #Tilbago seine gleichnamige Software für die Abwicklung von Betreibungsbegehren. PostFinance hat eine Minderheitsbeteiligung an der Tilbago AG erworben und verknüpft die Lösung mit ihrem Debitorenmanagement-Tool PostFinance Smart Business.
Damit unterstreicht die Finanzdienstleisterin ihre Vorreiterrolle als innovatives, digital orientiertes Unternehmen. #PostFinance investiert gezielt in Know-how und neue Technologien, um ihren Kunden noch bessere und einfachere Produkte und Dienstleistungen zugänglich zu machen.
In der Schweiz werden jährlich rund 2,8 Millionen Betreibungen ausgelöst. Bisher bearbeiten Gläubiger ihre Betreibungsbegehren vorwiegend manuell. Dies bringt einen hohen administrativen Aufwand in der Durchführung und der Kontrolle mit #sich und verursacht Kosten. Dem schafft Tilbago Abhilfe.
Kosteneffizienter Betreibungsprozess
Die Lösung von Tilbago führt Gläubiger durch den kompletten Betreibungsprozess, stellt die Einhaltung vorgegebener Fristen sicher und erleichtert deren Bewirtschaftung. Unter Nutzung der elektronischen Kommunikation mit den Betreibungsämtern wird die Gesamtdurchlaufzeit eines Falles von der Einleitung der Betreibung bis zur Zahlung durch den Schuldner oder der nachfolgenden Verlustscheinverwaltung verkürzt.
Betreibungen können dadurch schneller und kosteneffizienter durchgeführt werden. Die Lösung bietet somit einen grossen Mehrwert für Organisationen, KMU und Grossunternehmen aus allen Branchen. Innovativ ist auch die technologische Basis: Eine semantische Datenbanktechnologie ermöglicht eine laufende, bedürfnisgerechte Weiterentwicklung der Software.
Verknüpfung mit PostFinance SmartBusiness
PostFinance will ihren Kundinnen und Kunden den Umgang mit Geld so einfach wie möglich machen und sie entlasten. Dafür braucht es innovative digitale Produkte und Dienstleistungen. Aus diesem Grund #beteiligt sich PostFinance nicht nur an der Tilbago AG, sondern verknüpft deren Lösung gleichzeitig auch mit PostFinance SmartBusiness.
Diese Software für Debitorenmanagement wurde im August 2015 lanciert und entlastet KMU in der Abwicklung ihrer Debitoren; von der Offert- über die Rechnungsstellung bis hin zur Kontrolle der offenen Debitoren. Mit Tilbago macht PostFinance ihren KMU-Kunden einen weiteren Baustein in ihrer Wertschöpfungskette zugänglich.
Diversifikation der Ertragsstruktur
PostFinance erwirtschaftet heute rund zwei Drittel ihrer Erträge im Zinsdifferenzgeschäft. Im aktuellen Marktumfeld mit tiefen, teilweise negativen Zinsen ist es für die nachhaltige Profitabilität von PostFinance entscheidend, ihre Ertragsstruktur zu diversifizieren und neue Ertragsquellen zu erschliessen, in denen sie zinsunabhängige Erträge erzielen kann. Die Beteiligung an Tilbago unterstützt diese Ertragsdiversifikation.
The post PostFinance beteiligt sich am Schweizer Fintech Tilbago appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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