This week in Fintech

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Daily Fintech brings fresh daily fintech insights from people just like you – senior executives, entrepreneurs & investors working in the fintech revolution. Our weekly summaries give you a look at what you will get by reading the whole article.

Bernard Lunn is a Fintech deal-maker, investor, entrepreneur and advisor. He is CEO and Editor of Daily Fintech and author of The Blockchain Economy.

Monday Ilias Hatzis @iliashatzis our Greece-based crypto entrepreneur, wrote DeFi will eat traditional finance and dramatically expand the global lending market

Ilias Louis Hatzis is the Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech.

Pre-banks, loans were Peer-to-Peer (P2P, without the cost of intermediaries). After 2008, with banks in retreat,  pseudo P2P Lending ventures emerged that soon became lead engines for banks ie they were not really P2P. Crypto P2P lending matches borrowers and lenders directly. It is a back to the future story ie back to the days before banks. P2P lending is one critical plank in the DeFi (Decentralised Finance) platform ecosystem. Crypto loans are collateralized by cryptocurrency assets and secured through a smart contract.

Editor note: DeFi (Decentralised Finance) is a big wave of disruption.This is most obvious in Lending, the beating heart of banking. DeFi cannot be coopted. Like Bitcoin, it is a fundamental innovation that everybody will have to learn to use and leverage.

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote Two live Blockchain use cases in Mutual Funds administration and four pilots

Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019.

Real time settlement is now real in the capital markets. Two live services and 4 publicly disclosed pilots show that we have moved well beyond the conceptual and feasibility stages. The article focuses on Distributed Ledger Technology (DLT) using Blockchain to drive real time settlement in Mutual Funds administration with analysis of projects by Vanguard, Calastone, Fundsquare & Franklin Templeton. 

Editor Note: back in December 2015 when the concept of real time settlement in fund admin surfaced at an industry panel in Luxembourg, insiders were talking about 10 years for it to become mainstream. Less than 4 years later here we are – on track.

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Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur,  wrote Neobank bonanza downunder, as Xinja and 86 400 both launch

Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy and is the CEO and Co-Founder of Zuper, a new superannuation startup in Australia.

Australian banking is dominated by 4 banks – just like UK. That is a big scary opportunity for neobank challengers. On Monday, two new Australian neobanks – Xinja and 86 400 – both announced they were open for business, joining the earlier neobank Up Bank and the global challenger Revolut. Will Oz show that experience & data personalisation win over customers? The key maybe in neobanks wealth management offering after banks have divested their wealth arms post royal commission.

Editor note: Logic says neobanks  being tiny, should go after markets with lots of small competitors, such as Germany. Counterintuitively, the best opportunity maybe in banking markets such as UK and Australia where the competition is a few unloved behemoths.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert, wrote InsurTech efforts and the customer- who is being served with tech?

Patrick Kelahan is a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners. He also serves the insurance and Fintech world as the ‘Insurance Elephant’.

The #innovatefromthecustomerbackwards process starts with finding customer issues. Then the team needs to identify tools & methods to deal with those issues, design tech/processes to mitigate the identified adverse effect, roll them out. Get some traction. Then maybe become an anointed unicorn. This is a repeatable process – lather, rinse, repeat. Today’s Insurtech article describes 5 examples in insurance claims processing using #innovatefromthecustomerbackwards

Editor note: Pat is right to focus on claims processing. Customers care less about making it easier to buy insurance (even if marketing cares a lot). Customers want to know that when the manure hits the fan the process of getting paid is painless.

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Friday Arunkumar Krishnakumar @karunk, our London based Fintech investor, wrote Will SoftPoS be the new global payment mechanism?

Arunkumar Krishnakumar is a Venture Capital investor at Green Shores Capital focusing on Inclusion and a podcast host.

Software Point of Sale (SoftPoS) may replace secure chip & pin and archaic chip & signature still being used in America. SoftPoS first got traction in Asia, but is now happening globally. SoftPoS enable efficient small transactions via contactless payments. The small coffee shop (Micro-SME, key to global growth) saves time and can process more business at at peak times (and consumers get a quicker start to their caffeinated day). SoftPoS is putting pressure on PoS innovators such as iZettle as well as big payment processors.

Editor note: You can do contactless payments using traditional PoS devices from legacy payment processors. The base NFC tech is the same. SoftPoS enables tiny merchants with a smartphone to leapfrog straight to the contactless payment future and that is a huge deal.

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