The danger for traditional financing institutions hovers on the horizon. The advanced technologies may replace traditional banks in the nearest future. The reason is the Uber’s business model that became so widespread, that different businesses wish to follow its idea. Who do not know what Uber is, here is a brief information: Uber, an International Transportation Network Company, founded in 2009, developed the Uber mobile app through which customers can book a taxi. The Company does not own taxis as well it does not hire drivers. It created a bridge between customers and drivers. The business model of Uber is a profitable one because it is changing the way cities hire cars and the way people use transportation. The changes, banks should be aware of, are coming from fin tech companies that use better technologies and approaches. Tesla Motors displays impressive ability to keep ahead of automaker rivals, and it is in the making as another fin tech. The banks do not hurry to put innovation in the first place; they still depend on more on their profits.
The innovations do not forge ahead that is why together with micro loans and micro credits there is micro-insurance that is a product for those who earn $4 or less per day. According to Lloyd, the potential global market is 1.5 billion to 3 billion policies. AXA Ventures invest in this development.
The central idea from one article in the Wall Street Journal is that a business owner should be involved in a niche market to be funded this year. There are a great variety of P2P companies that finance businesspersons and startuppers. Nevertheless, the concentration on the narrower specialization and information will not help these providers to attract corporations. We think that acknowledge of the borrowers and risks is the key to success in the business area.
VCs are deciding, if it is time for Ethereum or not. It is difficult to estimate Ethereum start-ups, as the community and some business owners are still in the dark about cryptocurrency that makes it easier to transfer funds between two parties in transactions. By the way, Ethereum is a peer-to-peer network of virtual machines that any developer can use to run distributed applications.
SWIFT announces that Distributer Ledger Technologies (DLTs) could be used in financial services. SWIFT, together with Accenture, revealed gaps between existing DLT Solutions and industry requirements.
The quantity of online frauds is increased since EMV credit cards. PYMNTS and Fort measure the rate of fraud attempts on U.S. merchant websites change over time and study its types, sources, and locations of fraud attacks.
Capital One’s innovation. Last year the company started developing the new tool called Cloud Custodian, and now it is available as open source on GitHub. This new tool lets businesspersons define policies to be well managed in AWS.
United Capital is the latest wealth management firm to enter digital circles. FinLife Partners is the rebranding of its financial life management. The platform will provide a total tech solution for subscribers, including data about main providers and financial planning software.
Edward M. Stadum became General Counsel at Kraken Bitcoin Exchange. Previously he was U.S. Counsel at Fidor Bank, an Internet-based direct bank. It bears reminding that he was also a Founder and Managing Partner of TecVenture Partners, which he ran for 12 years.
Quote of the day. “Successful people do what unsuccessful people are not willing to do. Don’t wish it were easier; wish you were better.” — Jim Rohn