June 4, 2017
The FinTech revolution (evolution?) is taking a little longer than many had hoped. In the US or Western Europe, anyone using legacy cores, clunk mobile apps, or getting strange offers from their bank will certainly be asking, Is this what we’ve been waiting for? Well, these things take time. Meanwhile, Chinese consumers are wondering what all the fuss is about in mobile payments – isn’t that how things are done? If you’ve seen previous weekly reviews, you’ll note that technology itself isn’t enough. There are difficult headwinds to cut through: culture, legacy technology, regulation, and, oh yeah, not messing up people’s hard-earned money. FinTech’s impact is just beginning. We look forward to following it for many, many years to come.
One of the most interesting parts of the report was defining the success of the FinTech revolution. The true litmus test for FinTech success, for both challengers and incumbents, is customer acquisition – and this test is yet to be passed. Obviously, Accenture takes a company-first approach but I think this may give us a glimpse into a part of the issue of the FinTech revolution. Why isn’t the measurement of success directly related to the customers? Access to capital, reduced fraud, increased savings, debt reduction - aren’t these the true measures of success? I guess it depends on who you’re asking.
Don’t get me wrong, I enjoyed the report and I recommend reading the whole thing. You’ll learn something!
Perhaps (some of) the FinTech Revolution is already here. There have been many Initial Coin Offerings but Brenden Eich, co-founder of the Mozilla Founder, and creator of the Mozilla Browser, raised $35 million with the launch of Brave, a user-centric browser.Going forward, there will certainly be hiccups, companies will fold, and people will lose money but blockchain is already giving us a glimpse of its disruptive power. Who’s paying attention in Wall Street? Will it matter?
Learn more about ICOs and Tokens from this week's LTP article, by our very own Aman Trivedi.
See you next week!