TOP FINTECH STORIES 09/18/15
Financial institutions are starting to open up to FinTech technologies. More this week on big banks endorsing blockchain technology, along with several stories on APIs and how they can help banks compete in a FinTech world. Plus a look at which companies are already gaining headway in FinTech.
9 massive banks just teamed up to take the technology behind bitcoin mainstream
Nine of the world’s largest banks are partnering up with startup innovation firm R3 to create a network of blockchain systems for banks and financial systems. Banks see blockchains, the cryptofinance technology that underlies bitcoin, as potentially streamlining processes, such as issuance, to clearing and settlement and smart contracts, R3 CEO David Rutter tells Business Insider. Banks have been expressed interest in blockchain systems for some time, but, as Bernard Lunn of Daily Fintech points out, there could be some disruption for the middlemen who process bank transactions as well as security concerns.
Wall Street officially opens its arms to Bitcoin Invaders
Traditional banking sees Silicon Valley coming, and wants to welcome bitcoin’s potential with open arms, according to Wired. Wall Street wants to see if cryptofinance technology can streamline dense processes such as IPOs and trading in equities markets, public stock, and the NASDAQ’s private market.
Bank APIs power financial technology
As Fintech startups change the way consumers manage their finances, Ron Shevlin of The Financial Brand says legacy banks must ask two key questions: will they shift their business models to compete in an API-based world? And can some firm emerge as a truly full-stack bank? It’s not just Google, Apple or Paypal that are influencing the way we spend money; here are more APIs already changing the Fintech landscape. To learn the basics, see my Independent Banker article: Bridging the Banking Gap with APIs.
What can banks do to compete with nontraditional players?
Accenture estimates that competition from non-banks could erode one third of traditional bank revenue in North America by 2020, so the time for banks to grab a hold of their customers is now. Take a look at Accenture’s recommendations for banks to best serve and retain their clientele.
Will Apple own the payments customer?
Apple did what no other company could: take control from the mobile carriers. Apple Pay’s future remains unclear, but it’s certainly true that—the same way Apple set the standard for mobile phone technology—consumers’ affection for the brand give it the power to call the shots for the future of online commerce, says Karen Webster, CEO of Platform Dynamics, for Pymnts.com.
Braintree’s big bet on mobile pays off
With more customers doing mobile online shopping, Braintree’s one-touch technology and investing in existing e-commerce platforms just might change the way consumers shop. They’re reaching a lot of customers, about 50 percent of the Internet Retailer 500 as well as hundreds of thousands of merchants using PayPal and Braintree systems. Read more here about how Bill Ready, SVP and Global Head of Product & Engineering at PayPal, wants to influence the way we buy and sell on the go.