This Week in Fintech ending 26 June 2020

this week in Fintech V3 with HT.001

This weekly summary from our 8 experts, brings you insights based on their experience as investors, entrepreneurs & executives.

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Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy and occasional opinion columnist.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) @iliashatzis wrote What does the perfect wallet look like? Smarter!

In major media outlets, references to Bitcoin and other cryptocurrencies have become commonplace, yet crypto adoption still needs to overcome several hurdles. From exchange hacks and scams to building a clear case that makes a convincing argument about crypto’s value proposition for most people. But, the biggest hurdle is the simplicity of the user’s experience. On one end wallets need to empower people, giving them full control of their coins, and on the other managing private keys needs to be simple and seamless. For most people, managing your own private keys or mnemonic phrase is a difficult proposition. I am sure you’ve heard the phase “Not Your Keys, Not Your Bitcoin“. What this means is that if you store your crypto assets on an exchange or with any kind of third-party custodian, you have no guarantee of ownership. The reality is that most people today aren’t ready to be their own bank. If there is one thing you want to do with your money is that you want to keep it secure. Security is the first and most important principle for crypto to appeal to mainstream users. 

Editor note: A crypto hot wallet that is both secure and easy to use on a smartphone is technically feasible, but it is not easy to do well, because it needs some UI magic. Whoever cracks this one will do very well.

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser,  founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote Grown-up Fintechs have done very little in transforming banking culture

We live in a world that has increased its expectations from the corporate sector in terms of their social responsibility now and going forward. We monitor closer and expect much more from leaders in `large` companies. The items that have moved up to our top ten `social responsibility` items, now include

  • How management treats employees in these tough business conditions?
  • What actually matters as much or more than profit, to the business now that things got tough?
  • Who is innovative in a way that solves the current unusual circumstances?

The list, of course, is much longer, but in a nutshell, it is all about caring, ethics, values, and what matters. So, I cannot stop from asking the question `Have grown-up Fintechs lived up to the current circumstances and if not, what can we learn from these failures?`

Editor note: Efi points out that even if a venture scores on convenience for users, if it does not also serve the people who create the service then we cannot judge it a success.

Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Tuesday 23rd June

This weekly snapshot is the news that matters in the Stablecoin market.

Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur and thought leader specializing in Small Business and the Gig Economy & CEO/Co-Founder of Zuper, a new superannuation startup in Australia wrote  Banking-As-A-Service for Corporations The Next Wave

Just like you don’t need to be a qualified journalist to build a blogging empire, or train as a professional photographer to be become a high earning Instagram influencer, now you don’t need to be a bank to offer bank like services.

Moving swiftly into this new niche is Amazon – earlier this month the eCommerce giant announced it had partnered up with Marcus, the fintech offspring of Goldman Sachs. The Wall St giant will work with Amazon to underwrite digital credit lines for the platform’s sellers.

Editor note: Facebook has run its Libra tank onto the banker’s lawn. Now Amazon, with help from Goldman Sachs, is also doing this. Different focus, same nightmare for bankers.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert (a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners who also serves the insurance and Fintech world as the ‘Insurance Elephant’) wrote Life insurance in the digital age, well, digital/analog age

There’s good news for the life insurance market and there’s the same news- the market potential is dramatic, the product mix is profitable, customers understand the basic product pretty well, there’s not much for a carrier to do once a policy is sold, benefits aren’t paid for years, and there are clever folks coming up with digital improvements to sales acquisition.  Why then is the product’s penetration level contracting in many markets?

Editor note: This post is required reading for anybody in the Life Insurance business, where there is a coverage gap worth $trillions for what could be a simple parametric product backed by data science. 

Thursday Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote XBRL: the power of algorithmic contracts, ESEF tools & sample report.

Editor note: This weekly snapshot is the news that matters in the XBRL market.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote:  Alt Lending:Mini Bond Sales, Infrastructure, Credit Card Lending

Editor note: This weekly snapshot is the news that matters in the Alt Lending market, the first post by our new News Curator, Howard Tolman.

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