There’s a lot of excitement about blockchain and the opportunities it offers the financial services ecosystem, but a lot of work is still needed on bridging the learning curve around actual applications and implications. The very fabric of blockchain, its decentralization, is what makes it both interesting and at the same time, difficult to fit into current structures.
It’s amazing to think we’re at the end of 2016, but so we are and it’s time to look ahead to all the materialization we may expect from the digitalization of financial services in 2017.
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.
The vote cast in the UK Referendum came as a surprise to many. Ramifications and consequences will be significant and potentially long lasting, but new opportunities will emerge in various sectors. Crowd Valley remains committed to serving its existing clients in the UK, its future clients in the UK and continental Europe, as well as around the world. The need for modernization in financial services is unchanged and more relevant than ever.
Digital finance or fintech is a strong phenomenon on the tip of everyones tongue. The applications however are still often elusive as organizations search how these macro trends impact their existing operations and seek out where they are uniquely positioned and can compete in the market of tomorrow.
Recently I had the privilege to discuss changes and macro trends globally in different industries with a group of change management executives. While we discussed various topics, including incumbents abilities to innovate in new markets, cannibalization among other topics, we got talking about the changes of financial services institutions becoming the new effective ‘bit pipes’ (comparison from telco’s) and more so, if this is actually a bad thing?
Markets always move toward greater efficiency, history has taught us that much. Technological advancements in computing power has been remarkable, but the growth and pace of development keeps on accelerating. Have you thought through the extent of the plausible impact of artificial intelligence (AI) and machine learning in the financial services market? Go ahead, try.
When citing the growth of the fintech market, its common to see indicators such as VC investments in the market referenced. However accurate these numbers are, 2014 and 2015 have continued a dramatic increase in the pace of investment. Another factor that’s often harder to quantify, is the adoption among the incumbents and established market participants in the sector but arguably its at least as indicative of a larger trend.
Private transactions are a vast, often unstructured market with a big emphasis on informal networks. Just think of all the ‘friends and family’ money in the early stage investing market, the angel networks and the importance of their activity. In recent years the uptick of small funds, ‘super angels’, online syndication and co-investment models have paved the way for various family office, smaller funds and private investor networks to question the way they operate. Could structuring the informal networks into a catalyst for larger impact bring more bang for your buck?
The International Organization for Securities Commissions Gives an Overview to Existing Legal Frameworks for Online Investing
The International Organization for Securities Commissions (IOSCO) has released a statement on online investing and its existing and potential legal frameworks, after having surveyed twenty three securities commissions around the world on the subject.