FEDERAL RESERVE WARNS ON FINTECH RISKS AND MORE NEWS
A weekly wrap-up from Silicon Valley on what’s making the news in fintech, banking, and disruptive trends
Fed Williams Warns on Risks of Financial Technology
Why it is important: The Fed, along with other regulators, believe financial technologies have the potential to help the economy and financial system run more smoothly and at a lower cost. Simultaneously, they believe fintech could penalize already marginalized groups, be used to aid terrorism, or make the global financial system less stable.
Digital Disruption: How FinTech is Forcing Banking to a Tipping Point
Why it is important: As customers shift their behavior and move more towards digital solutions, banks will need to rethink their digital strategy. Industry experts believe an omni-channel strategy is the winning solution for incumbent banks over the next decade.
Regtech is On The Rise While Startups Threaten Disruption
Why it is important: Threats to banks are absolutely everywhere. Taking a look at any revenue stream in a bank’s armory – foreign exchange, payments, lending etc – there are startups of varying success entering the marketplace. Accenture predicts 80% of banks’ entire revenue-generating business will be enroached upon by the end of the decade.
The Big Flaw Few are Talking About in Fintech
Why it is important: Online marketplace platforms are not actually lending, rather they typically match up potential borrowers with the source willing to fund the money – such as hedge funds, institutional investors, or even traditional banks. The trouble is that if quality is bad, the actual lenders are going to stop coming back for more.
Banks and Fintech in 2025: An Unlikely Alliance
Why it is important: To maintain the dominance banks have enjoyed up to this point, they need a radical redesign of their customer-facing assets. If banks fail to overhaul their exteriors to offer a personalized, best-in-class product experience, they will be relegated to supplying the engine for sleeker-looking tech companies in 10 years.
Political, Business Leaders Size Up Stability Risks From Fintech Growth
Why it is important: A collection of executives from large banks, startups and regulatory agencies put forward four recommendations for a global approach to fintech under the banner of the World Economic Forum. They suggested debating “the ethical use of data,” establishing a forum for the public and private sectors to discuss issues in fintech, setting industry standards and monitoring changes so supervisors and regulators can mitigate potential risks.
Learn more about the agenda and speakers