Alternative Lending

The Virtual Skinny FinTech Ed.: Get Those Paypers…

Posted by The Virtual Skinny on in FinTech Edition, Newsletter

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.

The Virtual Skinny: #GivingTuesday

Posted by The Virtual Skinny on in Newsletter

12.1.2015

Good to Know:  Today is World Aids Day. If you’re on Snapchat today, your Snaps could go a long way. Bono’s RED organization, which fights AIDS, is partnering with Snapchat on special filters. Apply one of their three filters to your Snaps, and Bill and Melinda Gates will pump US $3 into RED for each Snap sent. #GivingTuesday 

THE SKINNY

Shut It Down … 

This past Sunday, the U.S. National Security Agency (NSA) bowed out of collecting American’s phone records.

Wait, What? 

The NSA collecting phone records on millions of Americans was a thing until the USA Freedom Act came along. The act is the U.S. Congress’s solution to make things better after ex-NSA contractor Edward Snowden leaked info about the intelligence agency’s government surveillance practices. Part of the law requires that the NSA put an end to phone data collection in the name of protecting American’s privacy.

What’s the Catch? 

Just because the NSA is ending this practice, doesn’t mean that it’s also getting rid of some of the data already collected. See, the nonprofit organization Electronic Frontier Foundation is currently suing the NSA over whether its phone program was even legal in the first place. The NSA says a case can’t be made unless it holds onto some previously collected data. So for now, the NSA won’t be hitting “delete” on that info.  Those fighting for Americans’ privacy are concerned that the government will figure out ways around the law to continue collecting info about people’s domestic calls.

WHAT ELSE IS GOING ON?

You Always Have Options … 

Getting financial institutions to lend money to people in emerging markets doesn’t quite work the same way as it would in “developed” worlds. Silicon Valley startups are on the case. These startups are looking at alternative data points collected via smartphones to help establish people’s creditworthiness in these markets.  Makes sense since mobile banking and smartphone adoption in areas like South Africa (34%), Kenya (15%), and Nigeria (27%) are on the up and up. Companies are looking at things like what time of day people are making phone calls, their texting behavior, their Facebook network, etc.  All of this sounds off privacy alarm bells for consumer advocates.  But, looks like people aren’t worried about that. Philanthropic investment firm Omidyar Network discovered that people in emerging markets will happily share that type of info in exchange for funds and lower interest rates. #Tradeoffs

It’s A Party, It’s A Party, It’s A Par-tay … 

Turns out that Argentina produces some pretty creative hackers, and tech companies are interested.  Rumor has it that business execs, government reps, contractors, etc. jetted off to the South American country this past October to scout out the talent during the 11th annual EkoParty, Latin America’s biggest hacking conference. Argentina’s hackers are turning their hobbies into profitable businesses by selling their exploitative tools as “spy tools” to governments like Iran.  Sometimes, it pays to be bad.

THE STREETS ARE TALKIN’

It’s holiday season, which means online retailer Amazon is grabbing headlines. The e-commerce company has a new hybrid drone prototype expected to make deliveries in about 30 minutes. The U.S. Federal Aviation Administration seems supportive and is trying to be more flexible with commercial applications of the technology.

Facebook’s shopping feed is off to a rough start with limited product selection and browsing options. In a nutshell, there’s quite a bit of room for improvement.

Mobile technology company NextBit is on a Euro tour with its new Robin Android smartphone.  It’s all about the “cloud.”

Some Brazilians aren’t cool with people’s hateful online posts so they’ve come up with a deterrent. An Afro-Brazilian civil rights organization Criola is putting some of their fellow Brazilians’ offensive comments on blast via billboard displays in their neighborhoods. Yikes!