Connect with us

Payments

The Challenges of Gaming Payment Processing

Avatar

Published

on

Payments

This Week in Fintech ending 16 October 2020

Avatar

Published

on

This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

To continue receiving This Week in Fintech, you can either become a paying Member for $143 per year (and receive all our content in addition to this weekly summary) by clicking here.  If you just want to receive This Week in Fintech for free, you will need to fill in this form

Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy and occasional opinion columnist.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) @iliashatzis wrote BigTech in Finance

Late last year, we heard that Google was looking to get deeper into the financial world by partnering directly with banks. In early August, Google announced its foray into the banking world with another six U.S. banks pledging to offer digital-only bank accounts through Google Pay. Google is already working with Citigroup, Stanford Credit Union, and added to its partnership roster, Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank, and SEFCU. The digital accounts will launch in 2021 in both checking and savings flavors and will be insured FDIC or NCUA. Google is looking to boost the usage of its digital payment services in North America by partnering with banking institutions. Google’s strategy is to let partnered banks and credit unions provide the underlying financial infrastructure and navigate regulation while it builds smarter interfaces and user experience. Lately, it would seem that every major tech firm has set its sights on banking. In 2019 Apple partnered with Goldman Sachs on the Apple Card, which currently has over three million customers in the U.S. In 2020, Samsung announced a competitive product to the Apple Card in the U.K, and now Google is cooking up its own option.

Editor note: the acceleration of disruption due to pandemic is making life very hard for incumbents

——————————————-

Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser,  founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote Knock & iBuying in US Real Estate Fintech

The SPAC trend continues in the US and Chamath Palihapitiya is one of the leading investors with his IPOA, IPOB,… series. The latest Fintech deal was focused on a real estate disruptor in the US, OpenDoor.

With Zillow, being the blue-chip name and already public, I wanted to dig into how OpenDoor`s positioning differs. Technology with all the B2B Software as a Service offerings (Saas) makes it so challenging to create and sustain a moat.

The secret sauce of a fintech business in real estate is not evident because the US real estate market is on the one hand mature but also very fragmented. On top of that, there are several uncertainties and moving pieces of the puzzle due to the current macro-economic environment and the emerging new normal life-style trends.

Editor note: Real estate it is a big broken market, but houses need creative selling. If Fintech can coop rather than eliminate realtors, it will be huge, just by eliminating the administrivia.

Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote:Could the Sidetree decentralized identity protocol enable both privacy and personalization?

I am a bit of a privacy nut. I don’t like being tracked and I don’t like anybody else controlling my identity. Yet I know that being tracked can create personalized services that are useful to me. That is why I am a fan of decentralized identity on the blockchain. (see Part 3/Chapter 6 of The Blockchain Economy digital courseware for more on how decentralized identity on the blockchain will disrupt today’s media business).

Today we give up our privacy/identity to Big Tech/Media and that is a massive business for them. So, as a media entrepreneur in a niche domain (Fintech) I want to understand how one can make money if identity is decentralized and under user control. I think keeping advertising to contextual (avoiding all tracking technology) is part of the answer, but users want personalisation (and the networked community enabled by personalisation) and that requires access to identity.

This got me to  look at the Sidetree approach to decentralized identity to see if it could be win/win ie for both users and media owners.

Editor note: bleeding edge technology alert, but all big disruption starts this way.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Wednesday 14 October 2020.

This weekly snapshot is the news that matters in the Stablecoin market.

——————————————-

Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: Taking Root, the Next Insurtech IPO. Clover Chooses SPAC.

After Lemonade and other successful IPOs including Snowflake and Palantir, Root Insurance has its sights set on the primary public market. In its S-1, Root minces no words about its intent to reinvent the $266 billion US auto insurance.

Five insurtech companies established after 2015 have each raised private capital in the region of $500 million. Lemonade has gone public, Root has announced plans and there are signs of more to come.

Root Insurance which focuses on automotive, claims to be the only P&C insurance carrier with a scaled proprietary telematics solution and largest proprietary dataset of miles driven, driving behavior and claims experience.

Editor note: Public market investors finally get a chance to ride the Insurtech wave – at rich valuations of course because of stimulus and investment bankers doing a good job.

Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote XBRL News:SupTech, future of reporting, taxonomy guidance

Editor note: This weekly snapshot is the news that matters in the XBRL market.

——————————————-

Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote: Alt Finance for week ended 16 October 2020

Editor note: This weekly snapshot is the news that matters in the Alt Lending market.

——————————————-

To continue receiving ‘This Week in Fintech’, the weekly recap of our articles, you will need to fill this form to give us consent to send this to you. Please note that Daily Fintech requires your organizational email address (e.g. corporate, educational or government) and your LinkedIn URL. This information is required for subscribers who want ‘This Week in Fintech’ for free. If you prefer to not provide this information, you can still receive all our content by becoming a paying member.

Source: https://dailyfintech.com/2020/10/16/this-week-in-fintech-ending-16-october-2020/

Continue Reading

Payments

Alt Lending Week Ended 16th October 2020

Avatar

Published

on

The Inevitable COVID crash. When and where will it strike?

Despite the pessimistic tone Matthew Lynn is in fact doing us all, Banks and Alt Lenders alike, a favour. In this piece he reminds us that that there has never been a recession yet which has not been accompanied at some point by a financial crash. And of course it is difficult to argue that the COVID recession is any different. You cannot regulate away an economic shock as big as this one and the impact of the sharp fall in economic activity is bound to manifest itself sooner or later. The big banks in the UK seem to be taking this pretty seriously reining in lending policies and being more selective. The Alt lenders however are behaving quite differently. Certainly their algorithm driven lending policies will steer them clear of the most obvious problem sectors but it is difficult to see how they will not undergo a certain amount of financial pain within the immediate future. I was given the unenviable task of managing a whole loan portfolio in decline. Computers are great at increasing efficiency in  reaching lending decisions and processing documentation and data, even, perhaps, assisting in getting money back more quickly, but it will not help if there is a systemic collapse. To use the current situation as a means to build loan portfolios to me looks questionable as a strategy.

Fed says small businesses dissatisfied with online lenders/

In January of this year the Federal Reserve published the Small Business Credit survey which looked at the business practises of online small business lenders from all over the United States. This was of course before COVID changed everything. The business showed a small number of common characteristics which include an automated online application process, proprietary algorithms to determine credit worthiness and a focus on speed and inclusivity. Succinctly the conclusion was that borrowers generally liked working with online lenders upfront but not later in the journey. This is obviously tied to the likelihood of approval which, not surprisingly, is the critical factor for a lender but it also points to the fact that credit is easier to obtain for online lenders than from traditional institutions such as banks. Satisfaction levels from borrowers working with digital lenders were significantly lower with the new boys clients citing inflexibility, high interest rates onerous repayments etc. It is much easier to dole out the cash than to get it all back together with interest and on time. Since January the whole situation has become a lot more risky. Next year’s report will be very interesting.

Government Loans £ 26 billion fraud risk

The UK national audit office has warned that up to £ 26 billion in Government bounce back loans are at risk either through fraud or the inability of borrowers to repay. I cannot say that I am surprised by this as it was a hurried scheme and was probably not thought through thoroughly. The loans are made either through existing banks both traditional and digital  and are guaranteed by the government. The institutions that rushed in to capitalise on the government guarantee had better start looking very closely at their documentation and compliance with stipulated process. Looks like a lot of organisations might find out the hard way that a guarantee is not cash.

Howard Tolman is a well-known banker, technologist and entrepreneur in London,

We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.

For context on Alt Lending please read the Interview with Howard Tolman about the future of Alt Lending and read articles tagged Alt Lending in our archives.

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

Reply  Reply All  Forward

Source: https://dailyfintech.com/2020/10/16/alt-lending-week-ended-16th-october-2020/

Continue Reading

Fintech

“Digital businesses are the future”: Airwallex’s journey from café to one of Australia’s fastest growing fintech firms

Avatar

Published

on

The pandemic has prompted an explosion of digital and global business services. Airwallex, an online business account for SMEs, has seen this surge in digital business first-hand.

“A major shift in the way businesses operate from offline to online is something Airwallex predicted from our inception,” said Jack Zhang, CEO and Co-founder of Airwallex.

“However, 2020 has fast-tracked this transition in a way no one could have foreseen. Businesses are now racing to embrace digital transformation at an unprecedented rate. We are more certain than ever that the digital economy is going to be the centre of the world’s economic structure.”

Airwallex’s impressive growth is a testament to the digital revolution that is facing businesses.

It achieved “unicorn” status – a $1 bn valuation – last year. In Q3 2020, it experienced over a 100 per cent increase in net revenue after recruiting more than 140 staff in early 2020.

Last month, Airwallex closed their extended series D fundraising with an additional $US 40 mn after initially announcing $US 160 mn series D funding in April 2020.

To date, Airwallex has raised over $US 400 mn since it was founded in late 2015.

Source: https://australianfintech.com.au/digital-businesses-are-the-future-airwallexs-journey-from-cafe-to-one-of-australias-fastest-growing-fintech-firms/

Continue Reading
Aviation1 hour ago

Flybe Comeback Planned for Spring 2021

Celine-Dion-private-jet-travel
Aviation1 hour ago

Which Individuals Spend The Most On Private Air Travel?

Aviation2 hours ago

Use domestic quarantine rooms for Aussies abroad, say airlines

Aviation2 hours ago

CASA staff pushed ‘to the brink’, say Professionals Australia

Esports3 hours ago

Rep. Alexandria Ocasio-Cortez’s Among Us stream peaks at over 400,000 concurrent viewers

Aerospace3 hours ago

Space Force stands up operations command in Colorado Springs

Esports4 hours ago

Hikaru Nakamura challenges President Barack Obama to a game of chess

Esports4 hours ago

PUBG Mobile reveals first virtual band, Power4

Esports5 hours ago

Lee Sin added to League of Legends: Wild Rift

Esports5 hours ago

How to use the AR Mapping features in Pokémon Go

Aviation5 hours ago

Podcast: What’s the real story behind Scurrah’s Virgin exit?

Esports5 hours ago

Hundreds of Twitch partners have received DMCA takedown warnings

Aviation5 hours ago

Brisbane-Cairns now busiest Qantas route

Esports6 hours ago

Haksal retires from professional Overwatch

Energy6 hours ago

CO.R.D.A.R Valsesia adopt innovative Israeli wastewater data solution to reduce water degradation in the Italian Alps

Aviation6 hours ago

Tasmanian drones find guns and chase vehicles

Techcrunch6 hours ago

Political strategist turned tech investor Bradley Tusk on SPACs as a tool for VCs

Esports6 hours ago

Armada or Mang0: Super Smash Bros. Melee community debates best player ever

Energy6 hours ago

Commencement of Cash Tender Offer for Ascent Resources Utica Holdings, LLC’s and ARU Finance Corporation’s 9.00% Senior Notes due 2027

Techcrunch6 hours ago

Watch GM unveil the $80,000 GMC Hummer EV right here

Energy6 hours ago

Entrada de Pedidos da Indústrias Romi atinge R$313,4 milhões, crescimento de 65,5% em relação ao 3T19

Gaming6 hours ago

AOC aims to get out the vote by streaming Among Us with pokimane and HasanAbi

Energy7 hours ago

Berkeley Lab Building Efficiency Campaign Drives $95M in Annual Energy Savings

AR/VR7 hours ago

PSVR Not Compatible With PS5 Camera, New Japanese Bundles Include Adapter for PS4 Camera

Automotive7 hours ago

Feast your eyes on the all-new, all-electric GMC Hummer EV

Techcrunch7 hours ago

GMC reveals the Hummer EV: 1,000 HP, 350 mile range, and 0-60 in ‘around 3 seconds’

Aviation7 hours ago

Air Force Thunderbirds to Headline Wings Over North Georgia

Esports8 hours ago

Riot lays out buffs, nerfs, and other changes coming in League Patch 10.22

Aerospace8 hours ago

NASA’s OSIRIS-REx spacecraft lands on asteroid in bid to collect samples

Aerospace8 hours ago

OSIRIS-REx touches down on asteroid

Esports8 hours ago

Everything we know about Verizon’s Wild Rift Invitational

Esports8 hours ago

AZR open to European offers

Fintech9 hours ago

Unblu Teams Up with Celero, LUKB to Boost Digital Customer Engagement

Aerospace9 hours ago

Lockheed Martin executives commend ULA for fighting back against SpaceX

Finland
Esports9 hours ago

FunPlus Phoenix in talks to sign GODSENT roster

Energy9 hours ago

Hycroft Appoints Stanton Rideout As Executive Vice President & Chief Financial Officer

Aerospace10 hours ago

Op-ed | Space Force should break the mold in recruiting and retaining talent

Energy10 hours ago

GWS Tool Group Announces Acquisition of STF Precision (STF)

Energy10 hours ago

Global Print and Apply Labeling and Labeling Equipment Market Outlook to 2027

Energy10 hours ago

Algonquin Power & Utilities Corp. Announces Dates for Third Quarter 2020 Financial Results and Conference Call

Trending