Fintech News Issue #202 January 31st, 2019

I am telling you stories, trust me. That is a line from a Jeanette Winterson novel that has nothing to do with banking. Nothing. All roads lead to banking only in my head. But bear with me. Let me tell you this story. It may make some sense.

Banks and credit unions know they are behind the digital 8-ball, so most are ramping up their investments. As financial institutions tee up the necessary resources, most say they expect to see significant gains. But experts caution that just implementing some digital projects should not be confused with true transformational change.

Lately I’ve noticed a few banks and fintechs wanting to “get started designing screens right away”. It seems great, but building the wrong thing is worse than building nothing at all.

A reputational battle is playing out across financial services as traditional financial providers get to grips with the latest wave of technological disruption posed by fintech companies.

We Are Social and Hootsuite’s latest collection of Global Digital reports reveals that internet users are growing by an average of more than one million new users every day, with all of the original ‘Next Billion Users’ now online.

With so many financial, technological and delivery advantages to being a digital bank, the best strategy for traditional banking providers may just be to start over and build a digital-only component on top of their legacy business.

One of the first things engineers learn in school is to break down problems into solvable components – and selecting a career is no exception. First, you must decide where your talents lie and cultivate them. Second, you have to identify a field where you can apply those talents to the best possible advantage.

One of the issues I have with financial services is that it’s frightening. You might not think so, but I grew up in a world of cushioned money. I didn’t know much about money at all. The most I knew about money is begging for more pocket money. The Bank of Mum and Dad was my financial education.

Banks aren't just lying to us, however--they're deceiving themselves about the impact that free checking accounts have on their bottom line.

The current evolution of automation technology is transforming the face of the finance function. In response to this, business leaders are recognising the unique opportunities and challenges a digital transformation of their business can deliver.

Banks are stepping up their efforts to detect and deter financial elder abuse in response to a rise in such crime, and artificial intelligence software could become part of the solution.

Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120 percent from the previous year, according to research by data provider CB Insights published on Tuesday.

While established insurance companies dabbled in telemetrics, integrated their siloed computer systems or launched drones to assess damage claims, the biggest insurtech innovations and disruptions happened behind the scenes.