FinTech Summary #52 — The Banking Bazaar

Today is the 52nd issue of FinTech Summary! What a year this have been. I have learnt a lot about this fascinating industry. Met loads of like-minded people. Made friends. I hope you have too! If you haven’t (and you live in London), hit me up and let’s grab a coffee.

I wanted to thank you all for reading; YOU are awesome!

I will be cheeky and ask for a small birthday present:

If you could share this post with at least 1 friend I will be eternally grateful (or well, at least as far as my lifetime stretches) :-)

The Banking Bazaar and the Bizarre Banker
 By Chris Skinner

The marketplace is the focal point for many FinTech start-ups, as they can create ‘stalls’ here that become major technology businesses like Stripe and Square. Banks have the regulatory licence to be marketplace owners. The bank just owns the space where a stall holder offers their goods and services, charging a fee. Lots of partners sell services in their market to the banks’ customers and, equally, the bank can sell lots of services to the market stallholders and their customers. It’s a good space to be. The thing is that hardly any banks see the world this way today. They want their customers locked into an end-to-end delivery of mediocre digital services in a monolith structure. The banks who try to lock out the third parties and play by themselves will do just that eventually left and forgotten.

The Unbundling of Insurance
 By Daily FinTech

Unbundling is what digitisation does to Incumbents. Insurance industry currently has a three stack layer: Brokers, Insurers and Reinsurers. Blockchain technology unbundles the link between Insurance Companies and Reinsurance Companies. Now any investor can be a Reinsurer. This could facilitate microinsurance type policies such as crop insurance. Companies using Blockchain technology, such as Symbiont can transform insurance risk into a security, thus making it simpler for investors. The impact of the technology like this will be the unbundling of Insurance and the democratisation of Reinsurance.

Bitcoin — Its Time Has Come!
 By Faisal Khan

The fundamental attribute of any technology can be traced back to the triangle of choice — price, quality, speed. You can choose any two elements, and the third one will go against you. Bitcoin (and the blockchain) are able to defeat the triangle of choice. You can have higher quality (read: global coverage, equal access to all), higher speed of transfer and a lower price per transaction with bitcoin. When something is disruptive in nature, it usually implies that all the norms have been shattered. Society needs to rethink and reevaluate in light of what has transpired. We need to rethink our money.

How [And Which] FinTech Startups Are Breaking Banking for Freelancers
 By Pavel Cherkashin

The global financial system is broken, and freelancers are getting the short end of the stick. For example, a freelancer in the Philippines who makes $5 per hour and just finished a $100 project will have to pay roughly 10% cash out. Imagine your bank charging $1,000 to cash a check of $10,000. The free banking economy goes much deeper than you may think. In fact, every third working American is freelancing. There is a huge opportunity for a new cross-border, freelance-friendly banking services to become available. Then you’ll see an even higher exit from the traditional full-time employment, which will come at a cost to traditional banking leaving them with fewer and fewer customers.

5 things that made me smarter this week

Some words sound the same in every language. An analysis of two-thirds of the world’s languages found that certain basic words are associated with similar sounds.
 
 Buzz Aldrin’s Guide to Earth Exploration. One of humankind’s first moonwalkers talks about his favorite travels on his home planet.
 
 What is internet culture? For some of us, the internet culture is closer to our hearts than the culture of the physical place where we grew up.
 
 A world without work is coming — it could be utopia or it could be hell. Robots will eventually do all our jobs, but we need to start planning to avert social collapse
 
 How I Rewired My Brain to Become Fluent in Math. The building blocks of understanding are memorization and repetition.


Originally published at FinTech Summary.