FinTech Articles Week of 10/09/15
This week I participated in a webinar “FinTech Rising: How to Create Synergies with Financial Institutions,” put on by Finextra and sponsored by Yodlee Interactive. A comment from panelist Matt Ford, Founder and CEO at the London-based FinTech startup Pariti, struck a chord with me for a workable future:
“We want to have a hand-in-hand relationship (with banks), where we can unbundle and provide personalized, low-cost services to consumers at exactly the right time. That absolutely involves collaboration.”
Register to listen to an on-demand replay of the webinar, and read this week’s contributions to the present state of banking disruption, innovation, and regulation.
FinTech (or marketplace) banks: the second wave of FinTech
The current wave of FinTech is reliant upon the structure of traditional banks, but Phillipe Gelis, CEO and co-founder of FinTech and FX startup Knatox, anticipates the next wave will be “marketplace banking,” offering services such as bank accounts, credit and debit cards, and eWallets. Read Gelis’ predictions for FinTech’s future in Novo Brief.
What “Main Street” community banking really means
“Let’s be perfectly clear: the traditional community banking model is under attack from the financial technology industry,” ICBA president and CEO said during the 24th World Congress of Savings and Retail Banks Sept. 24 in Washington, DC. Read his remarks to see the four ways in which he thinks FinTech is disrupting traditional banking and the three key priorities for community banking going forward.
Another example of why banking is not the same as music
Unlike the technical disruption that has impacted film, music and entertainment, government, licensing and laws give banking a bit of breathing room for adjusting their models to FinTtech. “This is the dialogue most banks are having right now: how to make the upstarts behave within the same constraints as the incumbents,” says Chris Skinner in his Financial Services Club Blog.
Is the banking industry living on borrowed time?
Although banks are pouring funding into digitally reinventing themselves, changing deep-rooted culture in these institutions is proving to be difficult. To remain relevant as FinTech startups and digital companies work to snap up market share from traditional financial institutions, banking organizations need to evolve, according to research from digital innovation agency Adaptive Lab for James Haycock’s Bye Bye Banks?
Reality does not match perception in banking innovation
The results of the Bank Innovation’s State of Banking Innovation study for the third quarter of 2015 illustrate a disconnect between how executives see their brands’ innovation and what’s really happening. JJ Hornblass breaks down the survey results in Bank Innovation.
Innovative thinking drags private banks into future
If financial institutions lag behind as FinTech innovation continues, wealth managers may face an existential threat, but it’s still unclear if these tools will build client-adviser relationships or be yet another thing for financial planners to “toggle in and out of.” Read Professional Wealth Management’s analysis here.