To be competitive in 2015, every business needs to think of itself as a technology business. With Software as a Service in the cloud and Internet of Things, virtually every technology business is a data business.
We already know that hundreds (1,147 according to VentureScanner) of innovative FinTech startups and larger technology firms (Apple Pay, Google-Alphabet Wallet), are seeking to unbundle the Big Banks.
Not only are the FinTech players looking to move up the Christensen’s curve of disruption, we also know that the Big Banks are trying to figure out how to incorporate the latest FinTech.
Despite a rocky startup phase, Bitcoin and its underlying disruptive blockchain technologies are no longer fringe projects. Deutsche Bank, for example, believes the blockchain and related distributed ledger technologies will result in more stable and resilient systems. Barclays, among others, has created FinTech accelerators/incubators in New York and other global sites to have its own employees work alongside the innovators and entrepreneurs.
The World Economic Forum recently validated the global disruptive potential of FinTech in its recently published “Future of Financial Services” (How disruptive innovations are reshaping the way financial services are structured, provisioned and consumed).
In a collaboration with Deloitte, the report looked at 6 key clusters of innovation:
2. Insurance: Disaggregating Forces and the Connected World
3. Savings & Lendings / Primary Accounts
4. Capital Raising: Alternative Capital Raising Platforms
5. Investment Management: Empowered
6. Market Provisioning: Smarter Machines and Connected Trade
In the Payments innovation cluster, for example, the report specifically calls out “New Payment Rails” as new cashless payments emerge. In the context of today’s centralized model as rife with cost and complexity, the report points to “the greatest impact of cryptocurrency protocols like bitcoin will likely be their ability to radically streamline the transfer of value”
Check back for more in-depth analysis…