Category Archives: Stories

Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals

Financial Post | Julius Melnitzer | Dec 5, 2019

fintech and banks mashup - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivalsCanadian banks have become 'incubators and accelerators' for tech talent, helping to get new innovations to market more quickly

For all the buzz about the disruption that’s occurring in Canada’s financial services sector, the country ranks a lowly 23 among 27 countries in its market adoption of fintech.

The information appears in an infographic prepared by Fortunly, an online knowledge base and financial product review-website. The charts examine the significant disruption that fintech solutions are causing in the world of finance, including mobile wallets, cash transaction systems, the rise of blockchain currencies and artificial intelligence.

See:  A major UK lender just launched a digital bank to compete with Monzo and Revolut | Interview with Bó CEO

Which is not to say that Canada is standing still. The country’s market adoption rate of fintech stands at 50 per cent, not insignificant but still way behind China and India, leading the pack at 87 per cent. Rounding out the top 10 are Russia and South Africa, Colombia, Peru, Netherlands, Mexico, and Ireland and the United Kingdom.

Canada’s adoption rate, however, is ahead of that in the United States, France and Japan.

Globally, adoption rates have risen from an average of 16 per cent in 2015 to 60 per cent in 2019. But Canadian adoption has rocketed even faster, from 8 per cent in 2015 to the current 50 per cent, which means that we’ve moved from 50 per cent of the world average adoption rate in 2015 to some 83 per cent today.

The Canadian Bankers Association (CBA) declined Financial Post’s request for comments, instead pointing to the technology focus section of its website for information.

“Banks in Canada have a longstanding commitment to technological innovation and in recent years have taken an increasingly active role in supporting the development of financial technologies, whether through in-house initiatives or external partnerships,” the site states.

The key phrase may be “in recent years,” which hints at the formative influence of non-banking startups.

“The fintech phenomena — non-banking companies that provide innovative financial products and services — have successfully responded to customers’ needs that weren’t addressed by traditional banks, forcing well-established financial institutions to adapt to this trend,” said Milana Kostic, a content strategist at Fortunly, in an email.

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Indeed, according to Fortunly, a global survey of financial industry leaders in 2017 revealed that 61 per cent believed they would lose 40 per cent of revenue to innovators, with the greatest impact in conducting payments, personal finance and fund transfers.

However that may be, the CBA goes on to say that banks are not only “making significant investments in the digital side of their businesses and in technology writ large,” but “also increasingly finance or partner with fintech companies to help provide access and exposure to innovative products and solutions that benefit customers, while fintech upstarts benefit from having access to capital and a pre-existing client base to help scale their operations.”

The CBA also refers to Canadian banks’ role “as trusted incubators and accelerators in order to stimulate new ideas, tap into high-skilled tech talent and help get innovations to market more rapidly.”

As the CBA sees it, fintech innovation in the banking industry can be categorized in three ways: in-house development of new technologies; technology sourced from or developed in partnership with fintech companies; and banks as tech incubators in collaboration with the fintech community.

The website’s examples lean to the first two categories, with “incubator” activity somewhat less prominent.

See:  Wealthsimple to spin out advisory service into separate company

Among the innovations cited as “in-house” fintech developments are:

  1. Bank of Montreal’s QuickPay solution, which leverages machine learning capabilities to recognize information across a range of corporations and statement formats, enabling customers to email their bills to BMO;
  2. The Canadian Imperial Bank of Commerce offers a SME/mobile app that gives business owners a comprehensive view of their finances and provides financial insights;
  3. Royal Bank of Canada’s Express Track Wire Payment leverages SWIFT’s global payments innovation technology;
  4. Bank of Nova Scotia’s eHOME tool modernizes and digitizes the entire mortgage process in real-time and without personal contact with a mortgage specialist or financial advisor; and
  5. TD Canada Trust has the integrated digital mortgage application.

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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How I Raised $1 Million in 30 Days with Equity Crowdfunding

Entrepreneur | Murray Newlands | Dec 3, 2019

equity crowdfunding funding - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivalsYou can raise a million, too. Here's how to be successful with equity crowdfunding.

There's an art to raising money for a startup. I recently joined Commerce AI as Chief Strategy Officer, and my role has two main functions: fundraising and marketing. My goal in the first 30 days was to raise a million dollars from crowdfunding. This can be a viable goal for your company as well. Here’s how.

Equity crowdfunding

Under the Jumpstart Our Business Startups (JOBS) act, there are a number of routes to crowdfunding. The starting point is a Form C round, which in essence means you can raise $1.07 million per year -- yes per year -- from non-accredited investors. This means anyone can invest over $250 at a time. This time we worked with accredited investors only but most people will start with a Form C round.

Architecting a New World: Investment Crowdfunding and Digital Assets

This model is like Kickstarter, but you give backers equity rather than a product. The equity can be a convertible note, a safe note or a fixed price round. If your goal is to raise more than $107,000, an independent CPA must review your company's financials for the past two fiscal years, or since incorporation.

Aligning the stars makes millions

You need to make sure that your startup is ready for fundraising. Smart investors on crowdfunding platforms look for a few key factors, and we had some of those.

It is all about the story. Investors want to invest in a company that is going to be a billion-dollar company. Do you have a credible path to becoming a billion-dollar company? For example, our CEO and founder had a successful previous exit. People like to back winners.

A strong team is also important. Ours is comprised of Stanford and MIT PhDs who have been working on AI technology to solve really hard problems.

Initial product/market fit is another thing investors want to see. We already had substantial revenue from major brand name customers like Unilever, Walmart, Rakuten, USPS, Chanel, Midea, Netgear, Cisco, and Coca Cola.

A sales process that’s growing that list of customers is also a big plus. We were nearly at break-even last quarter, which assured our investors that their money is safe with us.

No company can have all the boxes checked. But the more positive signals you have for investors, the better. Investors want as close to a sure thing as possible.

When fintech met crowdfunding

Creating a winning campaign

Several good equity crowdfunding platforms are available, such as StartEngine and Republic. We chose to use SeedInvest.

It’s important to create a convincing writeup and video explaining what you do and why people should invest. You should think of this as a landing that advertises your product, only you’re selling to investors rather than customers.

We focused on selling the opportunity and potential of the company, not the product. You might have an ingenious widget, but will your business become a billion-dollar company? It’s a big market out there, and investors need to be convinced that you’re going to be the winning business.

Pre-seeding the campaign

Because investors like to follow other investors, we pre-seeded a winning funding campaign. How? We had some investors with larger checks lined up to invest in the campaign. This enabled us to show strong initial traction when we launched. It also helps that crowdfunding platforms highlight companies that are gaining traction. This leads to attracting even more investors.

Getting In Early: SEC Sees Growth In Equity Crowdfunding

Always improving

Your campaign is never “done.” We kept working hard on improving our story. As a startup seeking investment, your goal is to sell your company’s potential for future growth. Getting that story absolutely right is very important. You should be practicing, thinking and brainstorming your story with as many people as possible. It should be something you’re always trying to improve.

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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[Brookings Institution Event Dec 5]: How to build guardrails for facial recognition technology

Brookings Institution | Dec 4, 2019

facial recognition - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivalsFacial recognition technology has raised many questions about privacy, surveillance, and bias. Algorithms can identify faces but do so in ways that threaten privacy and introduce biases. Already, several cities have called for limits on the use of facial recognition by local law enforcement officials. Now, a bipartisan bill introduced in the Senate proposes new guardrails for the use of facial recognition technology by federal law enforcement agencies.

See:  Smart Cities Offer Promises and Concerns Over Privacy

On Thursday, December 5, the Center for Technology Innovation at Brookings will feature Senators Chris Coons (D-Del.) and Mike Lee (R-Utah), who introduced the bipartisan Facial Recognition Technology Warrant Act this past November. The discussion will focus on how placing procedural safeguards on facial recognition technology, such as requiring warrants and limiting the duration of surveillance, can alleviate concerns over security and privacy while encouraging innovation.

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Brookings Institution

Falk Auditorium

1775 Massachusetts Avenue N.W.

Washington, DC

20036

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Stock markets are changing: Investors, companies and regulators must be prepared

OECD | Mats Isaksson | Nov 27, 2019

OECD equity market review Asia - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals

27/11/2019 - Asia is rapidly growing into the world’s largest stock market. In 2018, 51% of all equity capital raised through initial public offerings (IPOs) went to Asian companies. Today more than half of the world’s listed companies are from Asia. This development is reshaping global stock market in several ways, according to a new OECD report:

  • Households outside of Asia have increased their investments in Asian companies through pension funds, mutual funds and other intermediaries;
  • it is increasingly common that listed companies are majority owned by the public sector or by other private companies; and
  • smaller growth companies from Asia are using capital markets to raise money more extensively than smaller companies from the rest of the world.

See:  Social equity must be central to urban tech innovations

OECD Equity Market Review of Asia 2019 says that Asian non-financial companies raised an annual average of USD 67 billion during the last decade. This means that they surpassed the combined amount of equity raised by companies from Europe and the United States.‌

The development in Asia is largely due to a significant increase in the use of public equity markets by companies from China. Chinese companies have been the most frequent users of IPOs during the past decade, making twice as many IPOs as the US companies. However, it is not all about China. India, Korea and Japan also rank among the top 10 economies globally when it comes to the number of new stock market listings. Notably, several emerging markets, such as Viet Nam, Thailand, Indonesia and Malaysia, rank higher in terms of IPOs than most advanced economies. Many advanced economies have experienced a simultaneous decrease in the number of new listings and an increase in delistings. A development that inevitably has resulted in a decline in the overall number of publicly listed companies.

Another concern in many advanced economies is the changing character of the companies that use the stock markets. Historically, around 80% of all non-financial companies that made an IPO could be characterised as smaller “growth companies”. And it is a decrease in listings by these companies that to a large extent explains the overall decrease in the number of listed companies in advanced markets. In the United States, for example, the share of growth company listings compared to the total number of listings has declined from almost 80% during the period 1995-1999, to around 50% since 2000. A similar trend can be observed in Germany and to some extent in the United Kingdom.

Despite the decline in the number of listed companies, the total market value of listed companies to GDP has increased in many advanced economy markets over the recent years. This is largely because these markets host a smaller number of larger companies. The average market value of listed companies in some markets has actually doubled in real terms over the past two decades.

See:  Shifting from Institutions to Retail Clients — NYSE direct listings

Another important feature of today’s stock markets is that they have become more integrated and that a growing share of public equity investments are being made across borders. Continued strong IPO activity in Asia and an increasing weight of Asian companies in the global stock market indices would further increase the size of foreign equity portfolio investments in Asia. But Asian companies have also taken advantage of other means to directly attract new capital from abroad, notably through foreign listings. At the end of 2018, there were 600 Asian companies listed on foreign markets.

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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BMO restructuring charge to lead to hundreds of job losses

CBC | BMO Release | Dec 3, 2019

BMO - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivalsBMO says restructuring charge to affect about 5% of global workforce, without offering specifics

The Bank of Montreal's fourth-quarter profit fell to $1.19 billion as it was hit by a restructuring charge related primarily to severance that will affect about five per cent of its global workforce.

The bank said Tuesday the quarter ended Oct. 31 included a $357-million restructuring charge as a result of a decision to accelerate delivery of digitization initiatives and simplification of the way it does business.

Part of reason for the move was lower margins from its personal and commercial banking business in the United States as a result of lower interest rates, as well as slower U.S. economic growth expected next year, officials said.

BMO didn't reveal details about where or when the job cuts will occur, but it had about 45,513 employees at the end of October. A five per cent cut suggests about 2,275 jobs would be affected.

Based on the geographic breakdown of BMO's workforce, the restructuring could affect roughly 1,500 jobs in Canada and 775 in the United States.

See: 

Chief financial officer Tom Flynn said the efficiency initiatives announced Tuesday will provide annual savings of $200 million in its 2020 financial year, which began Nov. 1, and about $375 million by the first quarter of its 2021 financial year.

"I would expect the savings that we've talked about to flow through each of our businesses in a fairly representative way … both by operating group and by geography," Flynn told analysts on a conference call.

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Shifting from Institutions to Retail Clients — NYSE direct listings

Future of Finance | Lex Sokolin | Dec 2, 2019

printing press - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals

A core thesis I've held for a decade now is that personal finance -- what many in the industry call "end clients" -- is the tail wagging the dog. If you are a multi-billion dollar portfolio manager at KKR, or a multi-million dollar trader at Morgan Stanley, this might not be super obvious yet. The machinations of the high finance factory, with its blinking lights and massive bonuses, still feel like the primary activity in the industry. Once upon a time, so did the whirring of a newspaper printing press. But the examples keep piling up, and there is a way to draw a line that ends in an arrow, which points the way.

Take for example, the offering of shares to investors. The New York Stock Exchange is working on making direct listings more easily available to companies that want to go public. In short, more venture backed companies have been staying private longer, the average IPO size and cost of issuance have been going up, and the public/private market off-ramp is broken. Traditionally, investment banks intermediate private companies going public by building "liquidity" in the form of a willing book of public investors. Investor types include mutual funds, hedge funds, other banks and asset managers, and ultra high net worth investors. Maybe even some single-digit millionaires, grudgingly for the bankers of course.

See: 

It's a type of permitted market manipulation, where investment bankers often price the IPO at a discount, and the IPO purchasers often get to experience a "pop" in the price. Often -- but increasingly not at all. The breakdown of this carrot is causing private companies to re-think how they go to market. And by private companies, I mean venture investors at the top of the equity captable, like SoftBank. The failures of WeWork and Uber in the public market are key data points for this mental model.

Anyway, the large stock exchanges including NYSE and NASDAQ are exploring direct listings, which both Spotify and Slack recently used. What's a direct listing? To quote the Bloomberg article -- "Under a direct listing, a company makes its shares available for trading on a stock exchange without the formalities of a traditional IPO. That means no road show, no underwriter and no offering price". This implies that there is such built-in brand-demand that the stock starts trading without needing the guarantee of an underwriter. Popular companies are willing to take the jump and freefall into the market.

Remember Initial Coin Offerings, or its 2019 cousin Initial Exchange Offerings? Put aside your presumptions about regulation and desireability of the underlying asset. A direct listing is an Initial Exchange Offering. Or perhaps, an Initial Exchange Offering is a direct listing. You package up the investment asset, find an exchange with the largest network effect (in the crypto case, most certainly Binance; in the STO case, maybe CoinList or ConsenSys Digital Securities/Codefi), and lob it over into the ecosystem. Investors should be careful not to confuse the method of offering with the quality of the underlying investment. If all the good IPOs suddenly decided to list directly, direct listings would garner premier status. If all the good IPOs decided to tokenize and list on Coinbase (properly regulated), tokenized securities would garner premier status. This lemons problem is solvable, and direct listings are potentially the first step.

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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The 5 Debates That Will Shape Fintech In The 2020s

Forbes | Ron Shevlin | Dec 2, 2019

digital debates - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals

OBSERVATIONS FROM THE FINTECH SNARK TANK

It’s that time of the year when banking industry pundits turn their thoughts to the top trends of the upcoming year. I’d like to take a different tact and posit the top debates the industry will wrestle with in the coming decade.

It’s that time of the year when banking industry pundits turn their thoughts to the top trends of the upcoming year. I’d like to take a different tact and posit the top debates the industry will wrestle with in the coming decade.

1) Branches: Dead or alive?

The branch debate is certainly not new. But it’s far from resolved, and will accelerate in the next few years. To date, the debate has centered on arguments from:

  1. Branchophiles who point to statistics that show that some high percentage of consumers still go to branches. For example, a CNN article reported that “banks should think twice before they shut down their next bank branch: Many customers, especially younger ones, still regularly rely on physical banks to make deposits, get paper money and even pay bills.”
  2. Branchophobes (like myself) who argue that while consumers might still want the “human touch,” that touch doesn’t necessarily have to come from someone sitting in a building called a bank branch. Why can’t banks use Facetime to facilitate interactions between people? Or why can’t they improve digital processes so consumers don’t need human intervention?

Over the next few years, this debate will focus less on consumer behaviors and preferences and more on the potentially disparate economic impact of branch closings.

Make no mistake: This debate will continue to be politically-infused with anti-bankers accusing banks of intentionally taking harmful actions against segments of the population.

See:  Google is getting into banking with the search giant set to offer checking accounts next year

The NCRC report, for example, points out that “the loss of branch banking access impedes small business lending, hampering capital availability to the primary engine of US economic growth.”

This ignores two facts: 1) The capital gap was created by banks’ increased aversion to risk, not branch closings, and 2) The gap has been closed by fintech startups—who don’t have branches.

Potential implication: Digital banks (and other types of fintech providers) will be required to have a physical presence in economically disadvantaged areas, which will impede their cost advantages.

Bottom line: This decade-old debate will continue into the 2020s, but will be the first of the big debates to be decided as technology-driven approaches to banking become even more dominant—and operationally better.

2) Data: Will privacy and security concerns curtail the use of data?

Picking up where the AI debate leaves off, the debate over the use of consumer data will rage on throughout the 2020s with no easy answers.

On one side of the debate are Dataphiles who argue that data can be used to personalize products, services, and advice that deliver benefits to consumers.

On the other side are Dataphobes like Karen Yeung, a University of Birmingham professor who writes, in Five Fears About Mass Predictive Personalization in an Age of Surveillance Capitalism, that:

"Personalization fosters the asymmetry of power between profilers and individuals. Because preferences and interests are not explicitly stated, personalization may not be in the interests of the customer. Predictive profiling systems intentionally seek to exploit the systematic tendency of individuals to rely on cognitive heuristics or mental short-cuts in making decisions.”

Giving consumers choices over who gets to use their data and how its used will prove to be fruitless. As a Brookings Institution research study reported:

“Maybe informed consent was practical two decades ago, but it is a fantasy today. In a constant stream of online interactions, it is unrealistic to read through privacy policies. And people simply don’t.”

It’s not just privacy policies that fall short—proposed “dashboards” to give consumers control over their data can’t come anywhere close to the level of complexity involved with the use of consumer data.

See: 

Enabling consumers to sell their data isn’t a panacea. Proponents argue that “if consumers could sell their data, they would have the ability to share the data from any transaction with multiple organizations—to their own benefit and that of society as a whole.”

Unfortunately, this perspective ignores the fact that most consumers can’t foresee the way the data they sell could be used. According to the Brookings Institution, “Consumers are unlikely to strike a good deal for their data since they lack information about its value, and the data collectors will be the market makers.”

Bottom line: The debate over the use of data will become highly complex in the 2020s. Big Tech firms are already in the spotlight for their use of data—that light will spread to the companies who partner with them.

3) China or the West: Which fintech model will prevail?

SWIFT reports:

“China and the West are at different stages of fintech maturity. China’s fintech success derives not just from a technological advantage and unprecedented innovation, but also from integrating finance and real-life needs.”

The integration of “finance and real-life needs” has produced “super apps” like WeChat, which have yet to catch on in the US. The big question is: Will they?

The answer will likely be determined by how the other debates outlined in this article play out. Unknowns in this debate include:

  • Will the US continue to move towards socialistic economic approaches that help favor a super app environment?
  • Will the US develop and adopt a national AI policy to become more competitive (and, in fact, does it even need to)?
  • Will the US regulatory environment (e.g., antitrust laws) change to favor a super app approach?
  • Could a Chinese-like Social Credit System take hold in the US?

See: 

The virtue of a social credit system is a debate unto itself that could dictate the fintech implications. A study titled A Dystopian Future? The Rise of Social Credit Systems presents two sides of the argument:

  • One side argues that “a Social Credit System can’t be rightfully designated as civic virtues because: (1) a score constitutes an aim external to any ‘virtuous action’, and (2) the resulting activity tends to conformity rather than to distinction in the public sphere.”
  • The other side sees it as a “promising way to enhance distributive justice and an alternative for price mechanisms in market economies.”

The stakes of this debate transcends the success or failure of individual companies. As Richard Turrin writes:

“For the first time, fintech is being used by countries to compete with one another on a global stage. Fintech is being deployed as a tool for governments to project their power abroad, and potentially disrupt established systems.”

Bottom line: This is the mother of all debates among the five listed here. This debate goes to the heart of the American economic system and the zeitgeist of the American psyche.

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NCFA Jan 2018 resize - Embracing the enemy: Canadian banks partnering with fintech firms after once seeing them as rivals The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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