FinTech in Focus
Welcome to FinTech in Focus, a compilation of must-read stories about the role technology plays in the delivery of financial products and services. As part of the Center for Financial Markets FinTech program, FinTech in Focus offers a sampling of the week’s top domestic and international headlines and stories about this innovative, fast-growing sector.
As we continue to build-out the service and grow our readership, we will begin to release the weekly headlines over e-mail. Subscribe to FinTech in Focus to receive these updates in your inbox.
Big Banks Seek Common Standards for Blockchain Technology
Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, Goldman Sachs, JPMorgan, RBS, State Street, and UBS back R3CEV in an effort to apply the innovative distributed ledger technology to the global financial system. Despite the headlines, Wall Street is still cautious.
Legislative/Regulatory Actions of Note
California’s legislature recently voted down AB 1326, CA’s own version of a “BitLicense,” marking a win for bitcoin advocates. However, the U.S. Conference of State Bank Supervisors released its final model regulatory framework for virtual currency activities, to which the digital currency industry reacted warily. At the federal level, the CFTC issued its first action against an unregistered bitcoin options trading platform, Coinflip, Inc., defining bitcoin and other digital currencies as commodities subject to the Commodity Exchange Act.
Heavyweight Trade Groups Press for Heightened FinTech Regulations
Nearly a month after the Clearing House published a white paper calling for heavier regulations on alternative payment providers to ensure the safety of customer data, the European Banking Federation released a blueprint that suggests policy changes to better align regulatory requirements for traditional banks and FinTech firms.
Apple, PayPal Dive Into China’s Payments Marketplace
Apple registered mpayment subsidiary Apple Technology Service (Shanghai) Ltd. with multiple media outlets, suggesting this is the first step toward Apple Pay’s entrance into China. Meanwhile, PayPal introduced a B2B2C cross-border e-commerce solution for Chinese businesses, seeking to grab a share of the burgeoning third-party mobile payment market, which generated nearly $450 billion in transactions in the first quarter of this year. Both firms face substantial competition from incumbents, including Alibaba and Tencent in particular.
Robo-Advisory Business Set for Significant Growth
There are more than 200 “robo-advisors” in the U.S. alone, with assets under management likely to grow to between $1 trillion and $5 trillion by 2025, according to Citi Research. And it’s not just millennials who are using automated advisory services, but those who have accumulated significant wealth.
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