This Week in Fintech ending 12 June 2020

This Week in Fintech ending 5 June 2020

This weekly summary from our 8 experts, brings you insights based on their experience as investors, entrepreneurs & executives.

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Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy and occasional opinion columnist.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) @iliashatzis wrote Tokenizing Everything, even People. Are you ready?

We are a the dawn of a new age, with tokens. From art to buildings, to the way we invest in assets, tokenization is changing everything. The new “token economy” promises to change how we create and distribute value. Asset tokenization is disrupting finance and several other industries, breaking up ownership into fractional stakes that can be owned by multiple parties. This new ecosystem is already taking us in directions we can’t even imagine. Over the past few months, an area that’s been emerging, is the “personal token’. A personal token is a way to tokenize yourself, by creating a token on a blockchain that assigns a value to your personal reputation. A personal token is a digital currency that is issued by an individual to effectively borrow against his/her own future. While still a fairly niche sector within crypto, platforms are emerging that allow individuals to create their own tokens and leverage smart contracts to provide token holders with an array of value propositions.

Editor note:If your first reaction to Personal Tokens is that it feels like indentured servitude,  look at how consumer debt works. At least somebody buying Personal Tokens is taking a risk.

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser,  founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote Ten highlights from Mainnet2020 by Messari

I had the pleasure to attend some sessions from the Mainnet 2020 event last week. Ryan Selkis`s guitar playing as an alternative signal to wrap up the talk or the panel, was one of my favorites.

Messari, looks like a data, news, research business in the cryptocurrency, blockchain space. But what is not evident (yet) to everyone is their vision and how they are executing on it. They are very much focused on Transparency and an open-source approach. Ryan said Messari wants to become the Edgar in the new economy.

Editor note: These 10 points are bullish for crypto but also highlight the tough competitive nature of this market

Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for week ending Tuesday 9th June 2020

This weekly snapshot is the news that matters in the Stablecoin market. Alan’s provocative statement is There is No Interest in Fiat Currencies! The money quote is “For years Interest rates were like the “Killer App” for Banks and Fiat money.”

Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur and thought leader specializing in Small Business and the Gig Economy & CEO/Co-Founder of Zuper, a new superannuation startup in Australia wrote Gig Workers Are On The Rise Post COVID. Fintech Pirkx Stands To Benefit

All around the world, companies and their employees are adjusting to very different working conditions compared to those that existed pre COVID.

For institutions, adapting and surviving over the past 4 months and into the future has meant significant transformation at lightning speed. For some that has meant making productive ‘work from home’ actually work, be it swiftly getting on top of technical issues or implementing technology that helps line managers deal with the complexities of managing people from afar. For others, it has meant pivoting their business, laying off staff and completely rethinking revenue forecasts.

Editor note: The gig economy, a megatrend pre pandemic, is now “on steroids” and any venture enabling that will do well.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert (a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners who also serves the insurance and Fintech world as the ‘Insurance Elephant’) wrote NPV be damned- here’s a delightful IPO you can love

One can seldom say that reviewing an SEC Form S-1, IPO registration statement, is interesting.  Sure, you can learn much about a company that is planning an initial public stock offering, but that level of excitement is reserved for financial banks and investors.  But that expectation has been shattered by the form recently filed by digital insurer, Lemonade, Inc.  Not only is its filed Prospectus Summary a full eighteen pages long, it contains the words ‘delight’, or ‘delightful’ ten times.  As was the case five years ago, Lemonade has taken what was stodgy and made it, well, different. 

Editor note: The Lemonade IPO shows that the IPO window is open and will put Insurtech onto the front page.

Thursday Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote XBRL: Nowcasting, restaurants in lockdown and ESG reporting in melt-up

Editor note: This weekly snapshot is the news that matters in the XBRL market.

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Friday Bernard Lunn @LunnBernard, CEO of Daily Fintech and author of The Blockchain Economy wrote: Interview with Howard Tolman about the future of Alt Lending

Alt Lending is all the lending that does NOT primarily go through the bank channel. 

Banks have been pretty good at lending to consumers who have traditional full time jobs, to big corporations and to sovereigns/governments. That leaves everybody else to all the Fin, Tech, FinTech and TechFin companies who do Alt Lending. That is a big wide open market. 

Lending is the beating heart of financial service. Alt Lending is a big wave of change.  So I was delighted when Howard Tolman agreed to speak to me about how Alt Lending will change our world.

To understand Alt Lending you need to have a rare combination of experience. You need to be a banker who understands credit risk. You also need to be a technologist  who understands how to use technology in new markets. You also need to be an entrepreneur with a mindset of creating value in broken markets. 

Howard Tolman is that rare combination.

Editor note: There is a huge investor hunger for yield in a ZIRP/NIRP world. There is also a huge hunger for borrowing to ease the financial shock of the pandemic. The banks are asleep at the switch and governments have maxed out their credit cards. Enter Alt Lending through this window big enough to drive a truck through.

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