12.21.2015
Good to Know: 2015 is on its way out … ICYMI, here’s what FinTech can look forward to in 2016.
THE SKINNY
Thinking In the Alternative…
Tech companies and banks are banding together to build their own version of the blockchain, the underlying technology behind virtual currency bitcoin. The project is called the Open Ledger Project. Think alternatives to the blockchain like the Ripple network.
Tell Us More…
Nonprofit Linux Foundation is overseeing this alternative-blockchain movement. And, IBM, Intel, Cisco, the London Stock Exchange Group, JP Morgan, Wells Fargo, and State Street are in. The goal is to build something similar to the blockchain that will help increase transparency and automation across the business world. Think stock exchanges and financial markets, specifically.
If You Build It, They Will Come …
Yes, improving services in the business world is good and all. But, this move seems to be a lot about control. Currently, the current bitcoin network is decentralized just like the Internet. In other words, no one person or entity can claim the bitcoin network. With the Open Ledger Project, the participating companies can have a say in how the technology is built and operated. Word on the street is companies involved in the project want to ultimately keep this new blockchain-type technology open and non-proprietary.
WHAT ELSE IS GOING ON?
Starting Things Off Right …
In what will be a relatively light week on Wall Street on account of the holidays, things are looking up for tech and the financial sector. Not so much for energy stocks, which are trailing behind.
If It’s Broke, Fix it …
Global nonprofit organization Kiva is re-working its playbook for the U.S. market. The organization’s lending platform, kiva.com, has been a hit in when it comes to helping finance small biz in emerging markets, but it’s not so popular in the U.S. One reason? It’s just easier and cheaper to access capital. So, what’s the new angle? Kiva’s offering what it calls the Kiva Zip platform so small biz owners can bank on their friends and family to help fund their operation. We’re talking – raising $10k with 0% interest and zero fees and terms for three years. Not bad …
By Any Means Necessary …
We all heard about the massive data breach at JP Morgan earlier this year leaving 76 million homes vulnerable. Now, banks are shaking in their boots and are spending racks on racks on racks of cash to secure their systems. They’re also sending fake “phishing” aka “spear phishing” emails internally to see how employees react. Turns out employees are falling for it. In addition to training employees on what to do if they receive “phishing” emails, banks are also doing things like banning employees from using their work email address for play, using “out of office” emails or voicemail message, and from using portable devices like USBs. Anything for security. Speaking of … this year, entities dropped $75.4 million in the cybersecurity market.
THE STREETS ARE TALKIN’
UK mobile wallet app Yoyo has gone stealth mode in the U.S. The mobile wallet is quietly entering the market via a few chosen partners. It hopes to make things official during Q1 2016.
Investors are looking to Israel’s fintech market, which is hot, Hot, HOT! Turns out the country’s progression in cybersecurity makes it ripe for a fintech boom.
First Walmart, now Target. The retailer is getting into the mobile payments biz. Things are all very early stages, and the company says that it’s keeping its options open.
Breaking into the Chinese market. That’s top of the list on Apple and Samsung’s list of New Year resolutions. Both companies are looking to check that off their list with Apple Pay and Samsung Pay by collaborating with UnionPay. Chinese Internet company Alibaba’s already got a strong hold on the market with AliPay so we’ll see how this goes.
The U.S. Securities & Exchange Commission gave the A-OK to Overstock on its plans to use the blockchain to dole out stock.