July 23, 2017
This week’s FinTech Week in Review looks at changes in FinTech that are more than the sum of their parts. Payments aren’t about payments and competitions aren’t about winners – they both represent something bigger, more important than the technology accomplishments it takes to make them a reality. Without further ado...
"Over 300+ companies have been analyzed; after rigorous screening & evaluation by our selected team of judges and our in-house experts, the LTP team is delighted to announce the Top 21 Winners – across three regions: EMEA, APAC, and the Americas.
We recently unveiled our Top 21 AI competition results. The broad set of problems these AI companies solve speaks to the power and versatility technology is bringing to financial services. It is still very early to understand the true power of robotic process automation, machine learning, and all of the other techniques deemed under AI. Take a look through the winners and thanks again to everyone who applied and all of our judges. This certainly is a competition we need to run again as this space continues to heat up. Our Top 21 competition only capture a moment in any industry but the sheer amount of companies, people, and ideas floating around represent a palpable, pending shift in FinTech.
Over 75 percent of American smartphone owners have this app. It crosses the iOS and Android barriers and even companies that compete with the app, their employees and executives have this app and they use it with regularity.
Amazon has become a common topic in these weekly summaries and for good reason: they’re lending, providing cards, and now offering an in-store checkout experience. What’s so incredible about Amazon is that all of their financial services products feel like a natural extension of their business. Are you really surprised that they’re beginning to enable customers to make in-store purchases? Amazon is already the aggregator of shopping experience online and as a market maker, the knows the merchant and the customer. The quoted section from the article is Amazon’s secret weapon – they’re already embedded in customer and merchant’s lives. This is by no means to say Amazon has won the point-of-sale; however, these days, it feels like the gap between Amazon and everyone is only growing wider. This certainly puts them in prime position to drastically change the retail, lending, and payments landscape. Yes, the pun was intended.
It’s not hard to imagine people using Venmo at a fancy restaurant to broadcast their good taste and Zelle for payments that say less about their social status than they do about mundane financial chores.
Last week, we highlighted Zelle and this week, there is a great article about Venmo – it’s (potential) revenue generation. The article serves as the perfect metaphor for the tech industry and the banking industry. Banks and financial institutions continue to salivate over the potential to leverage their powerful transaction data on their customers while Venmo essentially made it a feature of their payments application. The social data, signaling, marketing, and advertising of Venmo’ social feed is (potentially) very powerful. Meanwhile, Zelle is a great piece of technology but it’s very utilitarian – P2P payments. Not surprisingly, it may be missing the mark that financial services and transactions are a lot more about who, what, when, and where they are happening rather than if and how it occurs. A lesson that continues to evade many of our financial services products.
See you next week!