Every day we bring you fresh insights about Fintech from an elite group of experts who are just like you – senior executives, entrepreneurs and investors on the frontlines of the global Fintech & Crypto revolution. Once a week Daily Fintech’s Editor summarises these posts so that busy people can get a peek at what you will get by reading the whole article.
The world needs a stable, digital currency that provides autonomy and better control of money. Bitcoin and other cryptocurrencies have emerged with the promise of fulfilling this need, but high volatility has hindered their usefulness. People in emerging economies need a way to protect their money, an easy and fast way send and receive money and merchants need a stable way to do business without intermediates. Stablecoins promise to fulfill these needs and Libra has set us on a course that will redefine money in the 21st century.
Editor Note: Libra is a weird mix that is so hard to define. The reality is that it is still only a roadmap, not a product we can use today.
Tuesday, Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote Vanguard undercuts Digital only `advisory ` offerings
The Vanguard effect is well known in the ETF market and now it could extend into the digital advisory space. The Vanguard Digital Advisory service is pending SEC approval.
Vanguard`s Personal Advisor services were launched in 2015 and as of June 30, 2019, $140billion are managed through this hybrid approach. This is more than four times higher than Schwab`s robo services.
This month, about 4yrs later, Vanguard is adding to their offering, the Vanguard Digital Advisory service.
Editor Note. The mantra of big companies facing disruption is “disrupt before you are disrupted”. This is very hard to do and is more often talked about than actioned. Vanguard seems to be an exception.
Wednesday, Jessica Ellerm @jessicaellerm our Australia-based Fintech entrepreneur wrote wrote First principles for Fundbox gives it the visionary edge in SME lending
Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy and is the CEO and Co-Founder of Zuper, a neowealth disruptor in Australia.
This week US SME lender Fundbox landed fresh funding, raising $176m from investors. What sets Fundbox aside from other lenders in the market is its 1st principles approach to solving the millennia old problem of trade finance. Rather than build a pure-play lending business, the company has looked deeper into the architecture of B2B lending. It now has its sights set on becoming a Visa-like payments network for B2B sales, minimising the friction in counterparty risk assessment.
Editor Note. Ask a small business owner what keeps them up at night and cash flow is likely to be high on the list. Unlocking the money in B2B supply chains is critical to this.
Thursday, Patrick Kelahan @insuranceeleph1 our US-based Insurtech expert, wrote ITC 2019 as mixer, and a mixed bag of InsurTech topics
Just as swallows return to Capistrano, the insurance innovation world returns to Las Vegas for its InsureTech (sic) Connect conference, this year attended by 7000. Well, if Jay Weintraub and Caribou Honig can host a sumptuous buffet of ideas, this column can present a buffet of InsurTech related items, too. And ponder- what is the opportunity cost of 7000 insurance persons being occupied off site for three or four days?
Editor Note. Interesting analysis of the the ROI of attending a big multi day conference such as ITC2019 for insurance. Their banking colleagues at the SIBOS in London this week must be asking the same questions. Getting perspective, learning about innovation, connecting with new people is certainly valuable, but ask anybody to create an ROI spreadsheet and they soon give up. Some investments have to be made without the comfort of a spreadsheet. For those who could not attend this is a very good review.
Friday, Arunkumar Krishnakumar @karunk our UK-based Fintech investor, wrote Singapore opens doors for digital banking boom in South East Asia
Earlier this year, Hongkong offered digital banking licenses to Alibaba, Tencent and Xiaomi. Therefore, it is not surprising to hear that the Monetary Authority of Singapore (MAS) are opening up their doors to digital banks too. Applications are open for firms wanting to set up a digital bank in Singapore.
Editor Note. When I worked in Singapore I noted how it was equally comfortable doing business with both regional giants – China and India – as well as many other Asian countries. Plus open to America and Europe. Combine that with a proactive and dynamic Fintech regulator, this city state looks well placed to ride the Asian Fintech wave.