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 Scarcity can mean different things to different people. Bitcoin scarcity creates value.

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

In economics, we have market equilibrium when supply equals demand. However, markets are not always in equilibrium. When supply is greater than demand, prices go down. When the opposite occurs, when demand is higher than supply, we have scarcity, which in turn leads to higher prices. Wikipedia states that scarcity is the limited availability of a commodity. Scarcity is the state of being in short supply. But how does scarcity derive value? What does scarcity mean for Bitcoin?

Editor note: The idea of a scarce digital asset is mind-bending to those who know the perfect copy machine of the Internet. Modelling that scarcity is the only logical way to value a scarce digital asset such as Bitcoin.

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote What has triggered the explosion of payments for order flow? Not Fidelity

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.

The Robinhood effect popped up again, as Schwab slashed its stock commissions to zero and forced TD America, E-trade, Interactive Brokers, Ally Invest, and Fidelity to follow suit over the next few days. Schwab called this the zero commission brokerage war, on CNN.This war is just the beginning of a broader trend that will be the demise of any product-driven business in financial markets.

Editor note: With the Vanguard effect at one end (AUM fees) and the Robin Hood effect at the other end (brokerage fees), the cost pressures are intense in Wealthtech.

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Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur,  wrote Longevity App Breaks New Ground In Australian PensionTech

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.

Australia has one of the world’s most sophisticated, widespread pension systems. As a result, a plethora of opportunities for startups are now emerging in adjacencies to the sector. A promising startup recognising one of these opportunities is Longevity App. We spoke to Longevity’s founder, Carla Harris, to get a sense of the problem her business set out to solve in the pension space, and how they are approaching innovation in the sector.

Editor note:The data point she quotes that women retire with nearly half that of men is staggering and terribly wrong.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert, wrote Insurance- not all fun and game theory

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’.

Economic game theory has resided at the core of insurance underwriting for some time but might be losing its luster through the advent of price aggregators. ‘Gamification’ through behavioral economics is gaining traction concurrently in the industry, that is, devising schemes to engage insureds more often with their policy than simply at annual renewal. 

More knowledge, less variability, more balance between insureds and insurers.  Has the industry finally adopted the Nash Equilibrium?

Editor note: Price discovery by customers through aggregated big data and AI has roiled many markets including now in Insurance, raising questions about how behavioural economics tools can be applied.

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Friday Arunkumar Krishnakumar @karunk, our London based Fintech investor, wrote Innovation theatres and Intrapreneurs, what’s the real deal?

Arunkumar Krishnakumar is a Venture Capital investor at Green Shores Capital focusing on Inclusion and a podcast host.
A year ago, I was a judge at an innovation demo day. The event showcased proposals of intrapreneurs within the host firm.
The idea was to choose 3 pitches that would receive funding for development and go-to-market. It was a high energy event, with great ideas.
Most pitches at the event focused on solving a problem faced by the firm. There was little thought around how the solution could scale beyond the firm into a viable business model.
Editor note: Arun looks at the value of an expert “outside in” review of an intrepreneurial venture.

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