3.30.2016
Good to Know: Calling all FinTech social entrepreneurs! If you’re working on solving the financial inclusion problem, Village Capital’s: US FinTech 2016 business-training program is for you. Learn more here and apply here. Hurry! You’ve got until April 3, 2016.
THE SKINNY
When It’s Time To Regulate On ‘Em …
The Office of the Comptroller of the Currency (OCC), a top U.S. banking regulator, thinks it’s time for some rules around the growing financial technology (fintech) industry. Traditional banks and fintech startups are here for it.
When You’re For It, Just For Different Reasons …
Traditional banks have long been regulated and want competing startups to join the regulatory party. Startups don’t mind because they actually want to play by new rules so they create and innovate without having to watch their backs like no one’s biz. Could be a win-win?
When It’s Hard to Lead From Behind …
Other countries like the UK have already made moves to put in place a more fintech-friendly regulatory framework (e.g., the UK now allows what it calls the “sandbox model” aka a fancy way to say it lets startups experiment under the government’s watch). U.S. regulators now want to get on their level…
When You’re Finna Do Something …
Other U.S. regulators have published papers and conferenced on fintech, but the OCC is taking it one step further. On Thursday (Mar. 31), it’ll publish its very own white paper on “responsible innovation” intended to get people running their mouths on the best way to put together new rules and processes. Top issue for discussion? A more systematic way for consumers to complain about new products and services.
WHAT ELSE IS GOING ON?
What’s HIGER Than Being #1?
Japan thinks Asia needs to be the top dog when it comes to blockchain technology. So, the country is doing its part to get there. Japan’s got some strict banking laws, but it’s willing to dial things back to encourage more investment in its fintech sector. The country’s banking regulator, the Financial Services Authority, are putting new laws re virtual currency exchanges on the table. Authorities think that changing the laws will be a good look for its fintech industry. More collabos between banks and fintech ventures are on deck with these changes (e.g., giving banks the go-ahead to buy stakes in non-finance related companies).
When You’ve Been Traded In For A Younger (FinTech) Model …
Bitcoin could be so yesterday. The virtual currency and its network are about to be replaced by Ethereum aka Bitcoin 2.0. Ethereum is taking advantage of the ongoing fight over software within the Bitcoin community. Things are looking up for the new virtual currency on the block. Its price is up 1000% just in the past three months, companies like IBM, Microsoft, and JP Morgan Chase are drinking the Ethereum Kool-Aid, and people think it’s better than Bitcoin. Apparently, it’s not just about its virtual currency network. It can do things like execute smart contracts or programmable transactions. Oh, and not to mention, people have already created applications for it (e.g., managing and paying for electricity, betting on sports, and not so legit things like Ponzi schemes). It’s not all sunshine and rainbows. There’s some concern about Ethereum’s potential security problems.
QUICK POLL – RUN THOSE NUMBERS …
FinTech brought in the doll-ah doll-ah bills in Feb. 2016. We’re talkin’ $1.5 billion in financing…
THE STREETS ARE TALKIN’
How do you reach millennials during tax season? Get Instagram star Pierce Thiot, responsible for the “Will It Beard” trend, to stick money in his beard. Just the latest attempt for small companies (Fishback Tax) and larger ones to reach millennials and their cash. #TaxSwag
Speaking of millennials, roboadvisor company Betterment just raked in US $100 Mill to bulk up on new products and services (retirement guides and account aggregation), which it thinks will attract young peeps.
Will Facebook soon let us make in-app purchases? Potentially. Code has been discovered within Facebook Messenger that’s got people talkin’.
Swiss banks want a mobile payments platform for the country. They’re chatting with retailers on how to make it happen.
Startup Purse wants to be the Bitcoin marketplace version of Etsy. Introducing Purse Markets. Sell anything on the platform in exchange for some virtual coins.
MIT’s Digital Currency Initiative is offering up $100k in scholarship to boost under-repped minorities and women at Consensus 2016, NY-based conference on virtual currency and blockchain technology.