Digital Bank

Jun 18, 2015

Digital banks think differently

Six years ago, when #innotribe first started at #sibos, we were given the chance to pitch an idea. My team’s idea was to integrate the trust you have built in the social network into the financial credit scoring system, and give you a trust score that could be leveraged by the bank. We didn’t win…

Jun 17, 2015

If I call you and you pick up next week, am I happy? So why do I accept this for a payment?

I often sit and think about the claim from my bitcoin friends that they’ve invented money without government. I’ve blogged about it quite often too. The reason it is of so much interest is that if the blockchain and bitcoin can circumvent the financial system and the banks, then we really are in transformational times. …

Jun 16, 2015

The Digital Bank Debate Continues

I mentioned a few weeks ago that we had a great twitter debate between Brett King and Michal Panowicz, with others joining like Jim Marous and myself. The debate is now being staged live at Next Bank New York tomorrow. It’s not so much a rumble in the jungle but a wrinkle-in in Brooklyn. Anyways,…

Jun 8, 2015

Banks question Fintech disruption … and ask the wrong question

I recently attended a conference in America, where the audience of mainly bankers could post questions to the speaker. During the digital bank discussion, here are the questions that came in and, purely because they are fairly common in everyday dialogue, I thought I would post and answer the questions here. Most are related to…

Jun 3, 2015

Building the new financial marketplace

I introduced the business model debate about banks yesterday, as the discussion always comes back to the new competition. Who are the new competition? Are they the upstart fintech startups or are they Google, Amazon and brethren? The answer is it’s both, but I wouldn’t worry about Google, Amazon and co as much, as they…

Jun 2, 2015

Will banks be laid low by a killer blow from new competition and regulation?

I regularly talk about the business model of banking and how it’s changing. The business model is based upon three things: Manufacturing, which runs the product and services innovation and administration centres in the back office; Processing, which focuses upon operational excellence in processing orders from front office through back office; and Retailing, where the…

Jun 1, 2015

FIDO needs more vision for digital identities

The real way to crack the onboarding and criminal activity is to create strong and secure digital identities. We are moving in that direction, but it’s a long slow process. For ages now, I’ve written about getting rid of passwords and improving authentication using mobile technologies: Why is KYC so difficult? AML prevention lies in…

May 21, 2015

The wifi payments world of the very near future

I was talking about the internet of things again today, and realised that I have a grand vision of the not too distant future where everything communicates with everything. We have chips as tiny as nanodots inside every brick, pavement slab, tyre, wall, ceiling … you name it. We have more intelligent chips inside car…

May 20, 2015

What do narrow banks mean for wide banks?

In this world of choice that emerges from the integration of new technology models and old financial models, we see hybrid systems emerging that bring together the best-of-the-best. A great example was announced today, as Metro Bank and Zopa join forces. The deal allows deposits from Metro Bank retail customers to use P2P lending as…

May 13, 2015

Goldman Sachs estimate 20% of bank lending will move to alternative finance ($12bn of profits lost)

One of my good connections via social media is Huy Nguyen Trieu. Huy writes a regular blog at Disruptive Finance, as well as being a Managing Director for Macro Structuring at Citi. He posted something in the last week that I felt was worth re-posting here as a guest blog. Read and weep. If you can’t…