1.27.2016
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THE SKINNY
When Everyone’s Talking About You …
At last week’s World Economic Forum in Davos, Switzerland, “fintech” was all the rage. Apparently, the term is no longer just for startup companies using technology to shake up the financial services industry. Traditional banks are saying they are about that “fintech” life too.
When You’re Not Quite Part of the Convo …
Though fintech was the talk of the town and startup execs made their first trip to Davos, incumbents were still running things and led discussions about the “Fourth Industrial Revolution” and “The Transformation of Finance.” It’s an interesting time, especially since old-school financial firms have as much as US $150 billion of revenue to lose to fintech startups according to consulting company Oliver Wyman.
When Someone Rains On Your Parade…
Not everyone is buying into the fintech hype, some bankers are pointing out major hurdles like regulation. Large banks also want to make sure that the new kids on the block play fair when it comes to offering consumer services. Not to mention, there’s talk on Wall Street. that fintech upstarts may have already reached their peak. Cue companies folding and/or merging with banks, potentially.
When You Have Other Options …
European officials like Dutch Finance Minister Jeroen Dijsselbloem aren’t shying away from fintech. Turns out that Dijsselbloem thinks European economies are way too reliant on traditional banking. He says alternatives are a good thing, and regulators should embrace that. Financing options are good for people and small- and medium-sized businesses.
WHAT ELSE IS GOING ON?
Belle of the Ball…
Also at Davos, ex-JPMorgan Chase exec Blythe Masters just pulled US $52 million to fund her blockchain technology startup Digital Asset Holdings (DAH). Where’d the money come from? A bunch of banks including Masters’ former employer forked over cash to help fund the new company, but it took longer than expected. Some banks opted out all together. Literally everyone is talking about “blockchain this” and “blockchain that,” but the technology’s real world uses haven’t quite caught up to talk of its potential. But, Australia’s main stock exchange, ASX, is on board. It inked a deal with DAH to settle trades and transfer money faster.
THE STREETS ARE TALKIN’
Peer-to-peer money transfer app Venmo is looking to make some money this year, and it plans to use its new feature “Pay with Venmo” to do just that starting today. Think of it as an alternative to paying for stuff online with your credit card.
Alternative lending startup Social Finance (SoFi) wants you to know who they are so it’s willing to shell out 20% of its annual budget for an ad spot during this year’s Super Bowl. In case you’re wondering, SoFi’s main jam is refinancing student loans and personal loans for qualified millennials.
Decentralize All The Things aka DATT, a social network based on blockchain technology, is almost complete. Start the six-month countdown.
When it comes to FinTech, London, Silicon Valley, Hong Kong, and Singapore are the usual suspects, but Mexico and South Africa are right on their heels.