Fintech Update, 6/12 - 6/18
June 12-18, 2017
Leading Off
FINRA announced a new fintech initiative to track industry developments; the Zelle payments network began appearing in bank mobile apps; AIG sold what it says is the first-ever blockchain-based insurance policy; the U.K.’s FCA announced the new round of startups participating in its second sandbox cohort; Circle announced that users can now make instantaneous, no-fee, cross-currency money transfers; and the MIT Technology Review profiled Ant Financial, highlighting its increasing use of AI.
The Week in Review
FINRA announces fintech initiative. The Financial Industry Regulatory Authority (FINRA) created its Innovation Outreach Initiative to “enable [it] to better track fintech developments across the rapidly changing industry environment.” The organization also set up a “cross-departmental team” to help set up and coordinate an industry committee and communication strategy.
Ant demonstrates blurring line between finance and tech. The MIT Technology Review profiles China’s Ant Financial, the world’s largest private company and operator of Alipay. The article highlights Ant’s recent plays in AI, including an automated system that files and processes auto insurance claims. “AI is being used in almost every corner of Ant’s business,” the company stated.
How Goldman has used AI to revamp IPO process. Bloomberg examines Goldman Sachs’ multi-year effort to automate its traditionally cost-intensive IPO process. Using a computer interface called Deal Link, the project has “eliminate[d] thousands of hours of work long performed by humans,” allowing “employees [to] pursue more productive work.”
Zelle payments network begins rollout. Early Warning Systems’ Zelle network, the big bank-backed P2P payments network designed to challenge fintech services like Venmo, is now going live in the mobile apps of over 30 large banks. Over the next twelve months, Zelle is set to be available on the mobile devices of over 86 million U.S. consumers.
AIG sells “first” blockchain-based insurance policy. The global insurer worked with IBM to create a blockchain-based “mulitnational master policy” for Standard Chartered. AIG said that blockchain technology allowed it to create a more efficient and transparent multinational policy than normal, and that its success proved that DLT will play a role in the future of insurance.
EU GDPR could mean big fines for European firms. A new report from data security firm AllClear ID [full text] indicated that European “financial institutions could face fines totalling €4.7 billion in the first three years under the new General Data Protection Regulation (GDPR).” The figure was determined by applying GDPR expected sanctions to historic data breach data.
FCA announces new sandbox cohort. The U.K. Financial Conduct Authority (FCA) selected 31 new firms to participate in the second cohort of its regulatory sandbox initiative. The firms come from a variety of locations and serve diverse financial sectors, including payments, insurance, and retail banking. The FCA also touted the higher number of applications it received this round.
Circle offers instantaneous, no-fee international money exchange. The Boston-based money transmitter announced that customers in the U.S., U.K., and “much of Europe” can now make payments in USD, GBP, or Euros “instantly and [with] no fees [or] FX markup on exchange rates.” Circle credited its Ethereum blockchain-based Spark platform for making the fees unnecessary.
Recap: CFSI Emerge. Held from June 14-16 in Austin, TX, the Center for Financial Services Innovation’s (CFSI) annual conference featured panel discussions and networking events focused on consumer financial products and issues. The CFSI also announced its 2017 FinLab startup competition winners.
Exploring the opportunity for fintech in Indonesia. Indonesian digital magazine Inc42 profiles the country’s current and potential state with regard to fintech. With a population of over 250 million, Indonesia boasts a large potential user base, though adoption of fintech products is hampered by the country’s size, relatively weak infrastructure, and large unbanked population.
Have a great week!
The Fintech Update Team