During a fairly quiet global news week, our Experts posted fresh Fintech insights each & every day.
TLDR. During the recent House Committee on Financial Services’ hearing about Facebook’s, Libra, Rep. Patrick McHenry described Bitcoin as an unstoppable force: “The world that Satoshi Nakamoto — author of the Bitcoin white paper — envisioned, and others are building, is an unstoppable force. We should not attempt to deter this innovation, and governments cannot stop this innovation, and those who have tried have already failed. So the question then becomes, what are American policymakers going to do to meet the challenges and the opportunities of this new world of innovation?”
Ed note: Ilias outlines the data points, beyond price, that show real momentum for Bitcoin. Bulls will love this post and can use these data points in discussions. Bears will have some data points they will need to consider.
Tuesday, Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote Convergence as a trend in the re-bundling phase of financial services
TLDR: Amazon is using Machine Learning to do small business lending as part of an e-commerce plan that threatens Facebook & Google. Meanwhile Telecom players like TMobile and Orange are moving into banking and new lifestyle finance brands such as Jumia and Mercado are emerging from Africa and Latin America.
Ed Note: Efi connects the dots that BigTech are making between media, telecoms, e-commerce and finance. She shows how the big pot of gold that they are all chasing is the billions emerging into a global middle class from places like Africa & Latin America.
Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur, wrote FinFit at the forefront of the financial literacy dilemma
TLDR: Poor financial knowledge leads to poor financial habits which leads to poor life decisions. This is affecting millions of the current generation. Better knowledge and habits should be taught at home and in school – but too often are not. An emerging group of fintech startups say that good financial habits start at work. This employee financial wellness space got a boost when FinFit announced it had closed a USD $7M Series B raise.
Ed Note: companies have a vested stake in the wellness of their employees, both physical and financial. So they will get involved when society fails to deliver that wellness – as long as some other company makes it easy for them to do so. Serving that need is a big opportunity and recent deals show that investors are understanding this.
TLDR: Don’t look now but the self-declared insurance disruptive force called InsurTech is maturing. There, I’ve said it. And cyber crime issues need to become mainstream discussions. There, I’ve said that, too.
Ed Note: Pat describes the maturing of Insurtech and the growing issue of insuring cyber risk, suggesting that IaaS (Insurance as a Service) is part of the solution.
Friday, Arunkumar Krishnakumar @karunk, our London based Fintech investor, wrote India embrace “Data Empowerment Architecture” with Account Aggregator
TLDR. India, a more open version of the mobile Fintech leapfrogging market laboratory of China, is now about to show the way with the concept of Account Aggregators. Think 11 million farmers (aka small businesses) and 1,300 million consumers.
Ed Note: when Nandan Nilekani talks you should listen. As co-founder of Infosys he became fabulously wealthy. As the architect of Aadhaar, biometric identification database of 1.3 Billion Indians, he helped put India on the Fintech innovation map. So when he talks about Account Aggregators, pay attention. He has got financial inclusion, technology, market forces and regulators nicely aligned. Unlike China, India is a democracy, so privacy has to be protected.
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