This Week in Fintech ending 6 November 2020

Taking a break from obsessing about the US Elections.

This week our experts brought you the following 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 Bitcoin by the numbers

I’ve always been a numbers guy when it comes to bitcoin’s growth and future adoption. Yesterday was bitcoin’s 12th anniversary, and since the bitcoin whitepaper has been published on 350 web sites and cited by over 1,100 scholarly articles. This weekend, bitcoin’s price rose above $14,000 for the first time since January 2018. As I write this, bitcoin is hovering around $13,800. Until now, bitcoin has seen three major bull runs. In June 2011, when bitcoin’s price hit $30, in January 2014 when it was reached $1,100 and December 2017 when it skyrocketed to $20,000. Each of these peaks was followed by a huge drop, where bitcoin lost more than 80% of its value. In the next twelve months the followed the December 2017 high, bitcoin’s price steadily dropped and by late 2018 it reached a low around $3,200. In mid-2019 it reached $13,800 before dropping to $4,000 in early 2020. Now it’s soaring again and many HODLers are hopping to see it clear past the highs of late 2017. I’ve compiled a list of numbers from a variety of sources about bitcoin’s growth in 2020. Hopefully, the big picture will become clearer, as you piece some of this information together

Editor note: Bitcoin is a seriously disruptive technology and the numbers now indicate that we are past the “then they laugh at you” phase.

Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Cross border payments part 2: your fat margin is my opportunity

“your fat margin is my opportunity” is a quote from a very smart entrepreneur called Jeff Bezos.

Cost in cross border payments comes from 4 sources:

– Fees. This is the most visible cost.

– Foreign Exchange. This often exceeds the visible Fees, but has been opaque in the past; it can be as much as 10%. This cost is becoming less opaque due to the work of companies such as Revolut and Transferwise and regulators in some jurisdictions.

– Hassle aka lost opportunity cost. For example if it takes an hour of my time and an hour is worth $400 to me, the cost is $400. Hassle usually relates to KYC which typically is just enough to annoy the honest customer but not enough to  catch the criminal.

– Time value of money. $100 now is worth more than $100 in a few days time.

Each of the legacy cross border payment rails has different costs on these 4 axes.

Editor note: This article looks at why cross border payments is so expensive today.

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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 Goldman Sachs cloud-native Transaction banking service

Goldman has been the one to watch for having the courage to reinvent its business and culture in all adversities. From the subprime crisis days, that Goldman chose to become a commercial bank and later returning the $10Billion bailout money; to offering free access to its analytical tools SecDB to all its clients[1]; to its infamous `You Can Marcus` ad for its consumer banking business launch, and on and on.

I won’t mention at all its Fintech global strategic investments and its partnerships with Fintechs and with BigTech; because I want to focus on Goldman`s latest move into Transaction Banking. I first have to thank Simon Taylor, who highlighted this in his Fintech Brain Food weekly.

Editor note: Note to all banking as a service startups, this is NOT validation, this is serious competition.

Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote:The Next Stage in the Financial Revolution: AR and VR Solutions

This article is written by Daglar Cizmeci, a serial investor, founder and CEO.

Technology-enabled financial solutions have undergone an evolution over the past 130 years. We can consider the late 19th century to have given way to financial globalisation. Starting with technologies such as the telegraph, railroads and steamships that enabled rapid transmission of financial information across the globe.

Since then, rapid technological developments have enhanced the way financial institutions can deliver their services. Traditionally, the financial sector has depended largely on human input to collect, manipulate and use data to serve the financial needs of consumers. From investment banking, accounting and wealth management, to insurance, regulated advice and retail banking; human involvement has always been necessary.

Then came Big Data, machine learning and artificial intelligence (AI). AI has become an integral part of our daily lives. From powering what we see on social media, activating facial recognition and suggesting the music we want to listen to; it seems fitting that artificial intelligence also contributes to our financial sector.

Editor note: tell your teenage gamer that “Goldman Sachs estimates that augmented and virtual reality is set to become an 80 billion-dollar market by 2025” and read this post to understand how to apply it to Finance.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Wednesday 4 November 2020.

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

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: Incumbents Go Partner Scouting, Seek Intelligent Tech To Scale

Tokio Marine has teamed up with AI powered claims technology provider Tractable to accelerate its claims processing. The partnership enables the insurer to use computer vision to assess vehicle damage in near real-time and estimate the extent of repairs needed. Tractable is also operational at other insurance giants such as MS&AD (fifth largest P&C insurer) to help accelerate servicing across thousands of auto claims each year.

Tokio Marine has of late, solidified its partnership with catastrophe risk modeler RMS to scale risk insights on perils and markets at enterprise level. And in its latest announcement last week, the insurer announced a partnership with leading insurtech Lemonade to enhance its operations. It hopes to create a range of new products and services through this partnership.

So, what’s the big deal about insurtech innovation, especially in intelligent tech such as AI that is seeing a surge in partnerships?

Editor note: Read this post to understand the key drivers for successful partnering in the Insurtech market.

Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote: XBRL News from India, EU and Japan

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

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote: Alt Finance for week ended 6 November 2020

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

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