Truth and Payments
posted by Collin Canright on June 20, 2017 - 9:36am
The FinTech revolution is not lost. Its outlines may be obscured by the fog of events, but, as this week's links show, it's still moving forward.
Editor's Note: The next issue of FinTech Rising will be published on June 29, ahead of the July 4 holidays in the United States.
Think about the invention of the printing press. Around 1440 when it was invented it was impossible to know how strong of an effect it would have on the world, allowing for the worldwide circulation and distribution of knowledge and ideas. To date, most FinTech firms and their products have focused on making financial services more efficient. Now we are on the verge of another unknown revolution in FinTech. "I contend the real promise of "fintech" lies with rebuilding truth and that the early assaults on the commanding position financial intermediaries have enjoyed is only the beginning of a transformative process," writes FinTech philosopher and strategist Pascal Bouvier.
Open banking is inevitable. Let's rethink data security, too.
Banking is no longer separable from technology. As technology increases in efficiency and ability, banks must keep up with new open banking that allows users to have more control over their finances, as they will primarily exist on accessible technological services. The success of this style of open banking, however, is reliant on banks' ability to integrate APIs with third parties, as well as in cybersecurity. Kevin Paul Murphy, president of the ISACA, vice president of the ISC2 and award-winning cyber security consultant said, "The new world of open banking is upon us."
iOS 11 lets you send and receive money via iMessage with Apple Pay
Person-to-person (P2P) payments are expected to be easier than ever when iOS 11 is released. The update will include the ability to send payments through iMessage. According to Apple's announcement at the Worldwide Conference, "the money will be transferred to something called an 'Apple Pay Cash Card,' which can then be sent to your bank account," wrote Sean O'Kane for The Verge. "That means Apple is not only coming for the Venmos of the world, but maybe the banks themselves."
The day will come when your credit card will disappear
Visa is diving head first into the FinTech community in preparation for the continuing digital use of monetary exchange. Klint Finley writes, "If Visa's innovation chief Jim McCarthy has his way, Visa itself may soon become invisible." This is because Visa is ready and willing to work with Apple Pay and Samsung pay to create a system that, in a way, makes payments disappear. Visa has recognized the changing tide, and is ready to lead the charge into a FinTech future.
The inescapable FinTech revolution
Two weeks ago, we ran an item suggesting that the FinTech revolution has become an evolution, co-opted by the very institutions it seeks to overturn. The article focused on a report by Accenture UK which suggests that fintech is too "tech-light" and that the banks will move FinTech forward. Not so fast, writes Therese Torris, PhD. "This short but dense report offers much food for thought. It tries to defend a bank-centric view of FinTech. In doing so, it shows that the Fintech game is a hard one to play and that it is also an inescapable one."
Illinois state-charted banks learned how they can support Bitcoin businesses. In an effort to educate banks about financial technology and what they can do to support its growth, Coin Center, in Collaboration with Digital Currency Group and the Illinois Blockchain Initiative hosted an informational event. The event was successful as many banks came to engage in a discussion about the future of financial technology.