Every day we bring you fresh insights about Fintech from an elite group of Authors who are just like you – senior executives, entrepreneurs and investors on the frontlines of the global Fintech revolution. Once a week Daily Fintech’s Editor summarises these posts for the time challenged to give you a peek at what you will get by reading the whole article.
While Bitcoin is a volatile and nascent asset class, Bitcoin has consistently outperformed the Dow, S&P 500, and gold in the last decade. With more regulatory clarity, as well as more transparency from crypto exchanges, the risk of owning Bitcoin diminishes every day, bringing more institutional investors to the market.
Editor Note: Ilias surveys the moves by major institutional firms, both buy and sell side into Bitcoin. These services reduce risk for institutional investors and that will bring in more capital which will drive up the price. That is good news for those retail investors who have front run the institutions.
Tuesday, Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote Where are the missing Homo Economicus in investing?
All economic theories assume a Homo economicus; which in plain English means a totally rational investor. We forget this basic assumption which makes all models ill-fit to our emotional and unstable behavioral profiles. This point cannot be ignored anymore, as we seek to deploy technology to offer customized financial advice and goal-based services.
Editor Note: the job of persuasion (sales & marketing) requires connecting at an emotional as we as a rational level. The wealth management persuaders don’t restrict their appeals to the theoretical rational investor; they win business by also appealing to the emotional reasons behind our decision-making. Efi shows how as investors we need to avoid basing our decisions on these emotional triggers. Yet we cannot always do this when faced the reality of uncertainty and our emotional human biases. Efi shows us a Fintech called Oxford Risk, a Fintech offering software to help guide investors through this complex reality.
Wednesday, Jessica Ellerm @jessicaellerm our Australia-based Fintech entrepreneur, wrote Australia’s largest bank to spend $5B on technology
As a fintech, how do you compete with an incumbent’s AUD $5B (US$3.4b) war chest, specifically set aside for technology innovation.
Editor Note: Jessica looks at how one bank, CBA, is using innovation at scale with a banking license to give Fintech scaleups a run for their money, when so many other big banks are conceding defeat on innovation.
The firehose of news is tough to keep up with in a market as dynamic as InsurTech. It gets more complex as you try to understand the interdependencies between different news stories.
Editor Note: news on its own is mostly noise on the line. It is raw data. We need people with lots of domain knowledge to be your guide by turning data into insight. Less noise, more signal. In Insurtech Pat Kelahan is that guide.
Friday, Arunkumar Krishnakumar @karunk our UK-based Fintech investor, wrote Klarna’s $460 Million raise and US ambitions – is an IPO coming?
Late stage venture capital deals and funding have been growing rapidly over the last three years. The most recent European Fintech to hit the headlines with yet another multi-Billion dollar valuation is Klarna. The “Buy now Pay later” payments company raised $460 Million at a massive $5.5 Billion
Editor Note: DailyFintech first wrote about Klarna in 2014, when we identified the primary innovation of “Buy now Pay later” and how it could disrupt the consumer lending business. This big round shows Fintech scaleups challenging the core markets of banks.
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