This week I attended a talk by Robert Scoble and Shel Israel, the authors of The Fourth Transformation. Their latest book charts the rise of #virtual and #augmented reality (VR & AR), haptic #technology, and the devices that will transform our experience of the world we know, not to mentionRead More
Bank Innovation
A small #credit #union in western Pennsylvania is making an investment that would strike fear into the hearts to bankers everywhere: #core replacement. Washington, Pa.-based #Chrome Federal Credit Union — formerly Washington Community Federal Credit Union &8212; is replacing its Jack Henry Symitar system with a core from #Nymbus, the splashyRead More
Bank Innovation
During January 2016, we published What does the #future hold for #blockchain and #Insurance? About one #year #later, this post looks at what happened during 2016 and what is likely to happen in 2017. The January 2016 post explains the value thesis of Blockchain in Insurance. It also mentions 5Read More
Bank Innovation
It was a wonderful indian summer day in Boston, Massachusetts back in 1999, sailing boats were battling it out on Charleston River, joggers lined the river #banks, and many a Red Sox fan was silently dreaming and hoping that one day, yes one day, their cursed team may win the world series again.
At the MIT Media Lab — back then, one of the culmination points where all things digital were being research and thought through by a multinational, highly switched on crowd of academics &8212; I had the pleasure to attend a conference labelled “The #Future of #Cars”, where researchers #from different faculties and Research Groups came together with industry representatives to discuss how digital will transform cars and how we will use them in the future.
To be honest, I don’t remember much from that day back then – the one example that sticks in my mind is a research project on intelligent rear-mirrors, that were able to measure objects approaching too fast and warn the driver that someone was approaching his or her car at collision course &8212; a simple algorithm that measured how fast 2D spatial objects increased in size and calcs the speed based on this.
Today, many higher end cars have similar technologies as standard built in. And the #connected car has definitely arrived. How disappointed do I usually get when I step into a rented car and find out I can&8217;t connect my iPhone via Bluetooth and listen to Spotify. Damn, feels like being thrown back into the neolithic ages.
While smart digital systems already assist and take a lot of hassle and bad moments out of the driving experience (and #some fun too, as sporty drivers like to emphasize), we are looking at a even more radical digital transformation of cars in the future. Our recent PwC Strategy& study estimates a revenue potential of >155bn USD by 2022, split across safety, autonomous driving and services delivered in and out of connected cars.
Estimated connected car revenues (and market share) by product package, 2015–22
If ongoing tests and pilots continue to build momentum, we will soon be driving without our hands on the wheel, or even sitting on a backseat enjoying the car basically drive itself from A to B. Of course the car can also inform us of any location specific things we need to know, offer us services and entertainment, or contact the closest garage, if the engine is making strange noises.
In our viewpoint on the Connected Car 2016 we are also looking more broadly at how connected cars will become a part of our daily lives &8211; the how and the why.
Prospects and profits for makers of connected cars
If interested, please have a look here
p.s.
for financial services i see a big potential in using the time we are being driven by autonomous cars more productively, e.g., engaging with my bank or FS provider around advice, reporting, transactions or just catching up in general and discussing ideas.
With the right multimedia Interfaces that experience can actually be made quite enjoyful, and people will definitely &8220;have more time&8221; and &8220;be at ease&8221; than at work or right before stepping into the car or when finally arriving at home from a long commute.
This article first appeared on LinkedIn Pulse
The post Connected Cars &8211; How To Move From A to B in The Future (And Maybe Do Some Banking in Between) appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
If you thought ‘#fintech’ was a buzzword, get ready for ‘open’. Open data, open APIs, open access – you name it. #Banks are under pressure on multiple fronts to open the doors and let in the tech punters, all of whom are hungry for a slice of customer data. OpenRead More
Bank Innovation
Recently a federal appeals court decided that the Consumer Finance Protection Bureau—a federal organization designed to safeguard against some of the pitfalls that led to the 2008 crisis—had been operating unconstitutionally, something which is certainly a blow to the agency itself and will no doubt have ramifications for how itRead More
Bank Innovation
Conventional thinking about #blockchain #technology‘s use in stock markets may be wrong, according to one academic.
During a webinar focused on Digital Wealth Management for one of our clients, I thought that I would poke the audience by discussing a #Future #World in which we all create wealth by investing in our Digital Assets. I started by referring to MyCreditScore, as a Digital asset, only becauseRead More
Bank Innovation
Much has been written about the #future of #banking. In the end, it all seems to come down to one question: will #banks become platforms or #pipes?
In reality, there’s no question at all. Platforms are the winning business model of the 21st century and the banking industry is well aware. In fact, banks have been platforms for decades — #fintech is merely creating the latest set of bank #platform extensions. Earlier incarnations include ATMs and online bill pay for consumers.
That said, what’s happening today is forcing banks to rethink how fast they extend their platform to avoid becoming just the pipes. The advent of the cloud and the software revolution in Fintech with billions of capital being invested every quarter has brought more innovation to banking in the past two years than it has seen in the past twenty. Still, the current David taking down Goliath narrative surrounding the future of banking and finance ultimately fails to account for the reality of the situation.
While it often goes unnoticed, a great many fintech startups today rely heavily on banks to enable their innovative services. The success of financial innovations like Apple Pay for instance is happening with a great deal of participation and cooperation between #technology companies and financial institutions.
This relationship between banks and fintech underscores the reality of the financial services industry’s future. Yes, finance is evolving alongside the accelerating curve of technology, and yes, fintech is driving much of this change, but banks are – and will remain – squarely at the center of the financial universe for quite some time to come.
For one, banks have been the backbone of the modern economy since its inception. They are far too ingrained in the financial system to be removed within any foreseeable time frame.
Banks also have deep pockets, infrastructure and experience. Large market caps and long track records are clear signals to customers that banks can weather the inevitable downturn. Startups, on the other hand, are more susceptible to turbulence and market volatility — things banking customers, especially business customers, would rather avoid.
Big data is yet another boon to banks’ staying power. Banks have been collecting data on customer transactions and behavior for decades. This creates major advantages for banks. When used in the right way, this data can be leveraged to do things like identify customers that are ripe for new payment services or to mitigate and underwrite risk in innovative ways.
But despite all this, there is one hazard currently menacing banks: disintermediation. Starting with the ATM, technology has been distancing consumers from banks for quite some time. Today, their relationship with the consumer is slimmer than ever.
Meanwhile, fintech is picking up the slack. While traditional banking experiences can feel clunky, fintech products and services are designed to work with people’s lives and deliver value in new and unexpected ways. These upstarts pride themselves on delivering superior customer experiences — banking that is intuitive, mobile, cloud-based, responsive, available 24/7, you name it.
Fintech companies are also agile and built for rapid iteration — skill sets banks don’t yet have internally. This allows fintech companies to focus heavily on usability and keeping their user interfaces modern. At Bill.com, for instance, we iterate our onboarding experience every two weeks. By comparison, most banks have outsourced many key functions to third-party service providers like Fiserv and Jack Henry, severely limiting their ability to make product changes outside of rigid, long-term release cycles.
The comparative lack of innovation by banks is no surprise. For decades, banks have spent most of their resources driving to meet quarterly earnings targets, delivering consistent results and ensuring compliance — the key objectives most highly-regulated, publicly-traded financial institutions must focus on to meet its obligations to shareholders — leaving fewer resources and funds for experimentation, learning and new product development. This makes it difficult for banks to keep up with shifts in customer preferences and behavior the way that fintech can. Banks know this and it is exactly why they are starting to shift their strategies to reflect being a platform and not just the pipes.
When banks become platforms for their customers and fintech partners, they increase the value of what they have built over the past several decades and disintermediation on the consumer front becomes irrelevant. Instead, as banks fuse their platforms with fintech, innovation will accelerate creating tremendous value for everyone in the food chain.
[linkedinbadge URL=”https://www.linkedin.com/in/renelacerte” connections=”off” mode=”icon” liname=”René Lacerte”] is CEO/Founder Bill.com and this article was originally published on linkedin.
Former #bitcoin champion Stefan Thomas caused a small stir in the #blockchain world today when he posted an essay entitled “The Subtle Tyranny of Blockchain,” which, as the title suggests, does not reflect favorably on the #technology. “In any protocol, everyone has to act the same. But in a blockchainRead More
Bank Innovation
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