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 of Daily Fintech and author of The Blockchain Economy.

Monday Ilias Hatzis @iliashatzis our Greece-based crypto entrepreneur, wrote Can’t be evil

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

Eleven years ago, the Bitcoin white paper was published, changing forever technology, finance, and our relationship with money. In these 10 years, Bitcoin has become more valuable than gold, we’ve developed blockchain and other cryptocurrencies and seen a possible decentralized future where people are no longer required to trust an organization, but rather are given the opportunity to create trust, transparency and verify whatever they want. Decentralization introduced the idea that organizations can’t be evil. 

Editor note: Many people were drawn to Crypto by the hopes of a better world and have been disappointed so far, but decentralization is still the best chance of a more level playing field.

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser wrote Innovative Crypto structured products – the ShortLyCi case

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.

Cryptocurrency futures of all sorts and margin trading up to x200 leverage, are being offered through different entities. Bitcoin ETFs have not been allowed and retail can either invest directly or through trackers and ETPs or certificates. In this post, I highlight the innovative cryptocurrency structured products that Lykke introduced this year, with a special focus on ShortLyCi. 

Editor note: Sometimes Crypto innovation looks conventional with things like futures and structured products but something that may sound simple, such as moving from quarterly to daily rebalancing can actually be game-changing. 

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Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur,  wrote Non-bank lending may have reached a tipping point in Australia

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.

It may have been a tough year for Australia’s banks -with cash earnings reportedly tumbling to their lowest level in 20 years – but it was a bumper year for non-bank and fintech commercial lenders. According to new data released by broker group FAST, non-bank lenders doubled their commercial settlements in 2019.

Editor note: Non-bank lending is no longer a tiny niche at 11%. Banks should be worried. At this level borrowers stop thinking of banks as the only real game in town. The financial results of Prospa will make bankers green with envy. 

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert, wrote Two insurance innovations roads to be taken- it’s not all 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 Innovation road diverged in an InsurTech wood,

And while I wanted to travel both

And be one searcher, long I stood

And looked down one as far as I could

To where it was lost in unknown techo growth;

Then took the other, as just as fair,

And an improving process that settled the claim,

Because it was known and pathways were clear;

Though as for the passing share

Had improvements that were about the same,

 And both in the searching equally lay

In process few adjusters had gotten on track.

Oh, I kept the first as a new way to pay!

Yet knowing how AI leads one to the gray,

I wondered which path was the proper tack.

Editor note: Pat looks beyond technology to factors such as process innovation and leadership culture to find the drivers of meaningful change in a number of different Insuretech markets.

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Friday Arunkumar Krishnakumar @karunk, our London based Fintech investor, wrote Is it Artificially Intelligent or Naturally Stupid? Let’s ask Apple

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

Earlier this week, there was an allegation that the credit scoring engine behind Apple card was biased. It emerged from the twitter account of David Heinemeier Hansson (@dhh).He raised the issue that his wife had been given a credit limit 20 times lower than his. David has about 360K followers on twitter, and the tweet went viral.Steve Wozniak, Apple’s cofounder chipped in that him and his faced the same issue. This triggered reactions from regulators and politicians. So, how do we keep tech that drives financial decisions honest? How much can we trust a machine’s intelligence?

Editor note: AI decision-making maybe 99.999% (5 nines) accurate but Sod’s Law says that one of those 0.001% mistakes will impact somebody famous and/or it will go viral.  Some sort of human oversight is essential.

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