2022 Fintech and Funding Conference (FFCON22: REGEN) | Dec 1 + Dec 6, 2022 Hybrid

Tech’s raid on the banks

The Economist | May 2, 2019

digital pig - Tech’s raid on the banksOVER THE past two decades people across the world have seen digital services transform the economy and their lives. Taxis, films, novels, noodles, doctors and dog-walkers can all be summoned with a tap of a screen. Giant firms in retailing, carmaking and the media have been humbled by new competitors. Yet one industry has withstood the tumult: banking. In rich countries it is perfectly normal to queue in branches, correspond with your bank by post and deposit cheques stamped with the logo of firms founded in the 19th century.

See:  Why Open Banking Represents a Seismic Shift for Fintech

Yet, as our special report this week explains, technology is at last shaking up banking. In Asia payment apps are a way of life for over 1bn users. In the West mobile banking is reaching critical mass—49% of Americans bank on their phones—and tech giants are muscling in. Apple unveiled a credit card with Goldman Sachs on March 25th. Facebook is proposing a payments service to let users buy tickets and settle bills (see article).

The implications are profound because banks are not ordinary firms. It is one thing for Blockbuster Video to be wiped out by a technological shift, but quite another if the victim is Bank of America. It is not just that banks have over $100trn of assets globally. Using the difficult trick of “maturity transformation” (turning deposits that you can demand back at any time into long-term loans) they enable savers to defer consumption and investment and borrowers to bring them forward. Banks are so vital that the economy reels when they stumble, as the crisis of 2008-09 showed.

Bankers and politicians may thus be tempted to resist technological change. But that would be wrong because its benefits—a leaner, more user-friendly and more open financial system—easily outweigh the risks.

Banking is late to the smartphone age because entrepreneurs have been put off by regulations. And, since the financial crisis, Western banks have been preoccupied with repairing their balance-sheets and old-fashioned cost-cutting. Late is better than never, however. Several new business models are emerging. In Asia payment apps are bundled with e-commerce, chat and ride-hailing services offered by firms such as Alibaba and Tencent in China and Grab in South-East Asia. These networks link to banks but are vying to control the customer relationship. In America and Europe big banks are still more or less in control and are rushing to offer digital products—JPMorgan Chase can open a deposit account in five minutes. But threats loom. Mobile-only “neobanks” that do not bear the cost of branches are nibbling at customer bases. Payments firms like PayPal work with Western banks but are expected to capture a greater share of profits. Lucrative niches like foreign exchange and asset management are being harried by new entrants.

See:  Open banking data tapped to speed up laundering checks

The pace of change will accelerate. Younger people no longer stay with the same bank as their parents—15% of British 18- to 23-year-olds use a neobank. Tech firms that people trust, such as Apple and Amazon, are natural candidates to grow big financial arms. The biggest four American banks are spending a total of over $25bn a year on perfecting better customer applications and learning to mine data more cleverly. Venture-capital firms invested $37bn in upstart financial firms last year.

The benefits of technological change are likely to be vast. Costs should tumble as branches are shut, creaking mainframe systems retired and bureaucracy culled. If the world’s listed banks chopped expenses by a third, the saving would be worth $80 a year for every person on Earth. In 2000 the Netherlands had more bank branches per head than America; it now has just a third as many. Rotten service will improve—it is easier to get money to a friend using a chat app than it is to ask your bank to transfer cash. The system will get better at its vital job of allocating capital. Richer data will allow banks to take risks that currently baffle underwriters. Fraud should be easier to spot. Lower costs and the democratising effect of social media will give more people better access to finance. And more firms with good ideas should be able to get loans faster, boosting growth.

Yet change also poses risks. Because the financial system is embedded in the economy, innovation tends to create turbulence. The credit card’s arrival in 1950 revolutionised shopping but also sparked America’s consumer-debt culture. Securitisation lubricated capital markets in the 1980s but fuelled the subprime crisis. In addition, it is unclear who will win today’s battle. One dystopian scenario is that power becomes more concentrated, as a few big banks learn to exploit data as ruthlessly as social-media firms do. Imagine a crossbreed of Facebook and Wells Fargo that predicts and manipulates how customers behave and is able to use proprietary economic data to squeeze rivals.

See:  Fintech firms want to shake up banking, and that worries the Fed

Another dystopia involves fragmentation and destabilisation. Banks could lose depositors to untested neobanks, creating a mismatch between their assets and liabilities that could lead to a credit crunch. If bank customers transact via tech or payment platforms, banks could end up with huge balance-sheets but without a direct connection to their clients. If they thus became unprofitable, they could be broken up, with the job of financing mortgages and absorbing short-term savings left entirely to capital markets, which are volatile.

Continue to the full article --> here


NCFA Jan 2018 resize - Tech’s raid on the banks 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

Latest news - Tech’s raid on the banksFF Logo 400 v3 - Tech’s raid on the bankscommunity social impact - Tech’s raid on the banks

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Tech’s raid on the banks




Guest Post | Sep 29, 2022 Being simple is often a good thing in a world full of complexity and technical breakthroughs beyond your wildest dreams. Just for that, there is a framework called Vue.js. Applications built using Vue.js may start modest and grow into something greater, but those built with another framework would default to complexity. Keep reading to learn more about Vue.js and its operation. VueJS: What Is It? A progressive framework for creating user interfaces is called VueJS, or just Vue (UI). In contrast to previous monolithic frameworks, Vue is constructed using just the simplest lines of code to maximize performance. Only the display layer is the subject of its library, making it easy to approach and incorporate into other systems. Additionally, it can create single-page applications (websites consisting of only one page), which enable connection with a variety of contemporary technologies like Laravel, or, best of all, hire Vue js developer to make things easier. User interfaces like React (used by Facebook), Angular (supported by Google), Ember, etc. are built with Vue.js. Vue.js, on the other hand, renders quickly and uses little memory. What Is the Purpose of Vue.js? Vue.js was created primarily to create one-page ...
Read More
Vue.js - Tech’s raid on the banks
NACO | Sep 28, 2022 This year's report analyzes Canadian angel investment totaling $262.1 million, a record recovery from 2020’s pandemic low of $102.9 million. For the first time in our history, we’re leveraging our international platform to spotlight the achievements of 27 women trailblazers. These leaders are at the forefront of Canada’s innovation economy. Together, we are working to transform inertia into action, barriers into opportunities and gaps into indicators of how much more is possible. This year‘s report is an in-depth, data-driven analysis that highlights persistent regional inequities. This is not just academic. It is a lived, day-to-day experience for Canada’s entrepreneurs. This is especially true for those that face systemic barriers and limited local pathways to mentorship and funding networks. In these uncertain times, the economic and social imperative to take bold action cannot be overstated. See:  OSC Publishes 2022 Investment Funds Survey Results Data However, change is coming. In communities across the country, innovation leaders are putting in place the building blocks needed to support entrepreneurs within emerging provincial and territorial ecosystems. Together we are creating a more collaborative, nationally accessible entrepreneurial economy. As NACO celebrates its 20th anniversary, we strive to build a future that ...
Read More
2022 Report on Angel investing in Canada - Tech’s raid on the banks
Guest Post | Sep 28, 2022 Users dealing with cryptocurrencies use these assets to earn money. They often exchange one type of digital coin for another or for fiat money. To be profitable they need to exchange crypto assets quickly and at good exchange rates to receive maximum benefit from the value of their assets whose price is constantly changing and can vary widely.  The good news is that today it is easy to exchange currencies at good rates 0.065 ETH to USD. Electronic exchangers help holders of digital assets with this. Most users prefer to use online exchangers than actual crypto exchanges or P2P sites because their services are much more convenient, simpler, and profitable (lower fees). The main thing is to find a reliable service provider who will: offer good exchange rates; and guarantee the transaction’s security Note that problems will not arise if you are properly informed how the transaction works and approach each digital asset exchange with responsibility. When to change cryptocurrency If you want to organize a profitable trade, do not rush to conclude a deal. Pay attention to changes in the cryptocurrency rates by studying the charts and graphs. It is no secret that ...
Read More
Exchanging bitcoin - Tech’s raid on the banks
OSC | Sep 14, 2022 The Investment Fund Survey (IFS) is an annual survey sent to more than 400 investment fund managers (IFMs) registered in Ontario to collect data on approximately 5,700 prospectus-qualified and exempt investment funds with at least $10 million in net assets. The collection of such data will allow for more comprehensive oversight of the Canadian investment fund industry and delivers on the OSC’s mandate of contributing to the stability of the financial system. See:  Why Data is the Lifeblood of a Modern Regulator Each year the annual data from the IFS is shared by: providing aggregated survey data as a downloadable CSV file on a no-names basis, and publishing charts that allow stakeholders to see certain insights from the data. This data is shared to promote greater transparency, in a manner that protects IFM confidentiality. This information will be updated annually as new data is received from IFMs. Aggregated IFS data  (CSV) Summary IFS charts  (PDF) Read more about the IFS to understand why and how it is conducted. Continue to the full article --> here The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking ...
Read More
OSC 2022 Investment fund survey - Tech’s raid on the banks
Guest Post | Sep 28, 2022 The year is 2022, and nothing is impossible. People are slowly shifting from regular paper currency to digital one, which is quite a revolutionary idea. It has made things easier and processes faster. Cryptocurrency has now entered every segment of human life. A few years ago, no one could have imagined buying the citizenship of a country through cryptocurrency. However, now it’s totally possible. Some countries across the globe allow you to buy citizenship by investing in real estate through cryptocurrency. One prominent example is that of El Salvador. It has started accepting crypto payments in almost all of its business processes. However, getting citizenship simply by investing in real estate through cryptocurrencies is a bit tough for other countries. Instead, the investor has to sell off his cryptos and then use this money to be a part of the citizenship by investment (CBI) program. Simply put, the money is transferred to the bank account, which proves its legality. Once all this is done, the investor can get his hands on the second passport. However, as it is a new concept, buying citizenship through cryptocurrency may get a little complicated. There could be lots ...
Read More
Unsplash image bitcoin - Tech’s raid on the banks
FP | Kevin Orland | Sep 21, 2022 Royal Bank of Canada is merging its RBC Ventures partnership group with its RBCx technology banking and innovation arm in a bid to capture more business from entrepreneurs at all stages of their startups’ growth. Sid Paquette, who has led both RBCx and Ventures since April, will head the combined business, the Toronto-based bank said in a statement Wednesday. The new RBCx will remain part of Royal Bank’s personal and commercial banking business, headed by Neil McLaughlin. The merger creates a single entity that can provide startups with everything from banking services and assistance from a group of specialists and technologists who can help them scale their businesses to access to capital including venture investments and even outright acquisitions. See:  Plaid Officially Opens it’s Canadian Office and Announces RBC Data Sharing Agreement RBC Research: Preparing for Hyperdrive – Themes that will define our new future RBCx has about 4,000 technology clients across Canada, and RBC Ventures has supported startups including the Dr.Bill medical-billing software, the Ownr business-launching service and the Mydoh money-management app for kids. “This is really the first time that these sorts of skills have been integrated into one practice,” ...
Read More
Unsplash Andrew Gook Royal bank plaza - Tech’s raid on the banks
Guest Post | Sep 28, 2022 Augmented Reality and Virtual Reality (AR and VR, respectively) have transformed several industries since their expansion in the last decade. As companies like Oculus VR, Nvidia and Snap democratized the technologies for private and small-business use, industries found several unique uses for the emerging tech. In retail, companies use AR to help consumers pick furniture, try on outfits before purchasing and test different house paint colours. Hospitality chains have leveraged VR to offer guests a detailed showcase of their luxury rooms and amenities. And the medical industry is currently utilizing AR and VR to train students and professionals without human subjects. With seemingly limitless possibilities, it’s no wonder the emerging technologies are currently disrupting the real estate industry. As real estate thought leader Regan McGee explains, “Anytime you bring innovative technology to the table that can make the process easier, it will be viewed as disruptive.” He explained in his interview with Superb Crew that “Incidentally, technological advancements are beginning to gain real traction in a stalwart industry that was initially skeptical.” How are AR and VR gaining traction in the traditionally low-tech industry? This article explores a few roles these immersive tools play ...
Read More
Freepik ksandrphoto AR VR - Tech’s raid on the banks
Wealth Professional | Noelle Boughton | Sep 27, 2022 Purpose Advisor Solutions (PAS) is partnering with a new wealth firm that is using Nobel Prize winning science to modernize the Canadian wealth management sector. It’s part of Purpose’s vision to support more small, independent firms coming into the industry. Origin Wealth is a new portfolio management firm based in Vancouver, which wants to provide an investing experience that empowers Canadians’ decision-making. It is aiming to transform people’s relationship to money from scarcity to abundance, and is using a disruptive experiential learning method rooted in Nobel Prize-winning economic science to educate people about investing. See:  Clearco Hires Advisor to Evaluate Strategic Options and Exits Foreign Markets Gans likened this to the registered investment advisor space, which is growing in the U.S. Jeff Gans, CEO, Purpose Advisor Solutions One of our beliefs is that the Canadian market needs more entrepreneurs in the investment space. There are a lot of big providers, but we believe there’s a need to have more new, innovative, independent advisors. We offer a platform for independent minded and entrepreneurial advisors who want to build their own advice business.  We provide them with the tools they need to manage a ...
Read More
Jeff Gans - Tech’s raid on the banks
Arthur0x on Medium | Sep 25, 2022 Today, the gaming market is worth over $300B (according to both Accenture and BitKraft) with an expectation of 12% annual growth rate from 2022 to 2028. Overview: Our thesis is that the integration of Web 3 elements into gaming will likely usher in a new era of gaming dubbed “Play-to-Own”. We posit that unlocking the economic activity within games will drastically expand the Total Addressable Market (“TAM”) for the gaming industry as well as supercharge the value creation. See:  FitFi and Web3: Step App launches on ‘move2earn’ protocol Potential: In 2021, we caught a glimpse of the potential of Web3 Gaming via Axie Infinity’s rise to fame. Popularizing the Play-to-Earn (P2E) model most of us are familiar with, Axie has grown from 10k DAUs in early 2021 to a peak of 3 million DAUs and brought in $1.3B revenue in 2021 according to Nansen. What’s more surprising is that Axie was still in its infancy Interest and ecosystems:  Games that integrated NFTs have experienced much greater success in terms of player retention, growth and revenues compared to their Web2 counterparts. We are already beginning to see a myriad of projects launching with innovative ...
Read More
Web3 gaming - Tech’s raid on the banks
Sep 28, 2022 People in scrubs rushing back and forth to treat patients in distress is a stereotypical image of hospitals. It is no surprise that many hospitals and other healthcare facilities are experiencing managerial difficulties. Not all organizations spend money on enhancing their internal procedures. That, however, ought not to be the situation. Great medical practitioners are only as effective as the administrative and managerial staff behind them. 1. Clinic Management System Managing a healthcare organization's medical, administrative, legal, financial, and regulatory aspects is what a Medical Management System is all about. It facilitates quick retrieval of patient information to create various records, such as categorization by demographic factors like gender, age, and so on. Among the medical management system's features are medical billing services, a streamlined method of handling all aspects of patient billing and collection, including calculating and processing payments and issuing bills. It's also simple to generate daily, monthly, annual, or custom reports. 2. Electronic Health Records Building a high-performance digital infrastructure for your health center is possible with the help of all-encompassing and user-friendly web-based electronic medical record software. Compared to using paper records, this greatly facilitates the reduction of errors. You and the patient may ...
Read More
Unsplash Irwan iwe Nurse in lab - Tech’s raid on the banks

 

Leave a Reply

Your email address will not be published. Required fields are marked *

19 + nineteen =