This Week in Fintech ending 19 June 2020

this week in Fintech V2.001

This weekly summary from our 7 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 Bye Bye SWIFT

Created in 1973, the Society for Worldwide Interbank Financial Telecommunication (Swift) developed a secure network to send and receive information about financial transactions. Today it’s used by more than 11,000 financial institutions in 212 different countries. More than $5 trillion go through Swift’s network every day. As you can expect, several projects and companies around the world are trying to unseat Swift. With cryptocurrencies and specifically stablecoins, Swift has faced some initial competition that will only get intense as they mature. A couple days ago, Bank Frick, a European bank, said buy-buy to Swift. The bank in Liechtenstein will now use the USDC stablecoin, to power cross-border transactions. Cryptocurrencies and peer-to-peer banking offer fast alternatives to the Swift network, and could help build a world currency unfettered by cross-border barriers.

Editor note: Ilias looks at bold move by Bank Frick to replace SWIFT with a Stablecoin. This is also a threat to XRP.

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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 The revised pessimistic projection for Digital wealth AUM does not make sense

Consulting practices call for 5yr predictions on all sorts of topics. The so-called Robo Advisor subsector in investing has not escaped these studies.

Back in 2016, was when Vanguard was making its first leapfrogging attempts in a space that Betterment and Wealthfront had brought to market. Personal Capital was also shaping up the hybrid version of `digital investing`. Deloitte, CB insights, Aite Group and others were predicting assets under management by 2020 (which at the time, seemed far away for all of us).

Predictions ranged between $ 2.2 trillion and $ 3.7 trillion in assets to be managed by Robo-Advisory services by 2020 and $16 trillion by 2025.

Permit me to take the mean of the range predicted for 2020 (trillions of USD are being transferred from the government to the `people` anyway as we speak) and round it up to $3 trillion for 2020.

Editor note: This nuanced analysis is required reading for anybody serious about providing wealth management services. 

Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for week ending Tuesday 16 June 2020

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

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 Fintech Funding Flat In APAC

Venture funding in fintech unsurprisingly went quiet in the Asia-Pacific region during the first quarter of 2020. According to a report released by S&P Global Market Intelligence, funding was down by 58.5% compared to the prior quarter, coming in at $1.3 billion.

What happened in APAC in Q1 isn’t all that unexpected when looked at through a global lens. Across the world fintech funding dropped back to 2017 levels in the first quarter of the year, as investors shut up shop.

Editor note: If you want to know where in  Asia the Fintech funding went to in Q1, read this post.

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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 Misconceptions regarding pandemic business interruption cover- contributing to preconceptions for future programs?

These may not be ideal times for the U.S. commercial insurance industry. 

Sure, that is stating the obvious as COVID-19 business interruption claims encounter denials of cover, and now civil unrest damage claims overlay the undercurrent of BI disappointment. It is hard to imagine that the trillion-dollar Covid-19 issue can be significantly affected by a billion-dollar unrest issue, but that is what the insurance industry had led itself to

Editor note: The Insurance industry needs to look at business interruption (BI) insurance with a strategic eye to retaining brand trust not a purely tactical eye to cutting costs by denying claims.

Thursday Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote XBRL: digital transformation of reporting, systemic approach to non-financial information and ESAP

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: Introducing Howard Tolman as the Daily Fintech Alt Lending News Curator

Editor note: Alt Lending (all the lending outside the traditional bank channel) is a tsunami sized wave of change, serving huge markets that have been neglected by banks.

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