Insurance has remained fundamentally unchanged for centuries. It has been described as one of the least trusted industry sectors with the lowest level of user satisfaction. Accordingly, to Daniel Schreiber, Lemonade CEO, the cause of this consumer unfriendliness is in the traditional structure of insurance: every dollar insurance company pays for their customers is directly taken away from their profits, which makes insurance company’s interest directly contrary to its customer’s interest.
EBAN and Crowd Valley Announce Cooperation to Bring Crowdfunding and Online Syndication to Angel Networks in Europe, the Middle East and Africa
San Francisco and Brussels, Belgium – October 17 - The European Trade Association for Business Angels, Seed Funds and Early Market Stage Players - EBAN - and leading global digital finance platform provider Crowd Valley Inc. announce their collaboration to provide an efficient and robust framework for bringing crowdfunding and online syndication technology to EBAN’s member angel networks, funds and investor groups.
Fintech is a booming industry, but how do you launch a concept? It’s like everything else right, research and testing? It might be attractive to do the full concept across from a whiteboard, but technology has come a long way with the API economy and iterative development that allows a minimum viable product to be put in front of the stakeholders before the average procurement process within a large organization would be completed.
The Emirates may have been less responsive than others to take action on the disruption happening with financial technology, but in the last year, along with the growing enthusiasm showed by the local environment of finance pioneers and investors, we have seen a good number of new initiatives that should catalyze the local digital finance market to scale.
Thomson Reuter’s Practical Law division published an article that provides a comprehensive review of the 60 crowdfunding offerings that were filed within the first two months of Regulation Crowdfunding becoming effective on May 16, 2016. This publication contains highlights and a more detailed analysis of a nascent, but promising sector.
Financial technology adoption has been incredibly fast in the most advanced economies, but it’s a totally different story for what concerns emerging countries, where the penetration of digital finance services is still very low. The good news for those economies, and for those looking to do business there, is that the potential growth is now extraordinary, thanks to the level of smartphone penetration.
A ‘Fintech Sandbox’ is a technology environment where companies/firms would work in close partnership with regulators to develop their ideas and technology without the red tape that may inhibit their potential growth. In the UK, France, Singapore, Hong Kong and Australia, regulators have already or are currently laying the groundwork for a such a Sandbox environment that gives the firms the ability to test a new product or business model with a limited launch, without going through the full regulatory process.
Having the opportunity to interact with digital finance professionals and innovators from around the world gives Crowd Valley a strong insight into market trends. These trends give a fantastic overview into market demand that is shaped by investors, borrowers, financial institutions and regulators alike.
Germany recently received quite bad news that could affect its economy and financial system. In order to settle the claims in the diesel emissions scandal, Volkswagen agreed to pay about $15 billion to the US authorities and Deutsche Bank, the country’s largest bank, received a $14 billion charge (pending final settlement), again from the US authorities, for mis-selling residential mortgage-backed securities (RMBS) in the 2008 financial crisis. However, we will see its not all bad news for Germany. In the second quarter of 2016, the investments received by VC-backed German financial technology companies, have been 80% higher than those for UK ventures, and its fintech ecosystem is now growing at a good pace.
The benefits of technology applied to existing processes making them more efficient or effective should be very practical. However, it’s easy to get lost in over hyped terms such as ‘fintech’, ‘peer-to-peer markets’, ‘crowdfunding’ and forget what the practical benefit is.