Banks and FinTechs

Banks need to respond to FinTech competition. Banks are aware of the situation and are starting to respond. In technology partnerships, banks must remember what they have to offer. And they are leaving gaps in the international market. The jostling for position and territory continues in this week’s links.

Cutting through the noise around financial technology

How is the rise in FinTech startup disruption different than the dot-com bubble? That’s the question that McKinsey & Company explores, taking a closer FinTech companies’ signs of success. The research firm points to six markers of FinTech companies’ significant impact. Citing McKinsey & Company’s findings, theFinancial Brand argues that the banking industry needs to understand and adapt to the overall changes in the marketplace fast.

#FinTech 2.0: the great rebundling

As FinTech startups take away some of traditional banking’s customers, financial services seem to be unbundling more and more. It may not seem so at first glance, but banks are paying close attention and rebundling financial services within their model, writes Chris Skinner.

Don’t give away the store when enabling APIs

APIs are now presented as a way to provide additional value to customers, facilitate collaborations and a way to innovate. Though APIs have not been widely spread, it’s not an option to ignore APIs either, as governments are making moves toward encouraging API use, American Banker reports.

As global remittances surge, FinTechs aim to remove the friction

According to World Bank figures, migrants will send an estimated $610 billion this year across international borders, American Banker reports. Some FinTech startups have stepped in to ease the fees and speed up the wait time to send money to loved ones around the globe, but the lack of inoperability and the correspondent banks that handle international transactions could pose a significant challenge.

Ethereum is winning in both enterprise and consumer markets

Businesses like Ethereum because it enables them to cut costs. Consumers have caught on to DAPPS, but it’s too early to see signs of mainstream traction. By now, people are discussing how to use Ethereum, not if they’ll use it. “If you don’t use Ethereum, you have to defend that decision,” writes Bernard Lunn for Daily FinTech.To subscribe to FinTech Rising Articles of the Week, go here.