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.
Blockchain Banking Posse Grows
Less than a month after R3 said that nine global banks had joined the NY-based firm to develop a framework for the use of the blockchain, the firm announced the addition of 13 more to the initiative. Banks involved so far: Bank of America, Bank of New York Mellon, Barclays, BBVA, Citi, Commerzbank, Commonwealth Bank of Australia, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Mitsubishi UFJ Financial Group, Morgan Stanley, National Australia Bank, Royal Bank of Canada, Royal Bank of Scotland, SEB, Societe Generale, State Street, Toronto-Dominion Bank, and UBS. Separately, Level39 CEO Eric van der Kleij is stepping down to focus on blockchain technology at ENTIQ.
Greetings, U.S. Retailers: You’re Now Liable for Card Fraud
Credit and debit card liability shift away from card issuers to retail merchants that have not installed EMV-capable payments systems in the U.S. began last Oct. 1. But is the U.S. ready? According to various reports, the answer at this point seems to be a resounding NO. Interestingly enough, large-scale data breaches are on the decline, according to a recent study.
100+ Comments to U.S. Treasury RFI
More than 100 comment letters, including one from the Milken Institute Center for Financial Markets, were submitted to the U.S. Treasury in response to the department’s request for information on the burgeoning online marketplace lending industry. The deadline for submission came around the same time that Avant raised $325 million, SoFi raised $1 billion, and Prosper reached $5 billion in lending since inception.
Capital Markets Union in the EU
Last week, EU Commissioner Jonathan Hill launched an action plan to form a capital markets union in the EU. The plan includes efforts to develop Europe’s alternative finance marketplace to provide SMEs with greater access to capital through innovative funding options — a tall order given that European companies are primarily reliant on large banks for financing.
UK Alternative Finance: A £10 Billion Market by 2020
A new report suggests the growing alternative finance market in the UK could bloom to over £10 billion by the end of the decade. This despite the fact that SMEs generally have a lack of awareness with external sources of finance, with 61 percent of micro-sized firms and 31 percent of medium-sized companies reporting that they wouldn’t know where to find the sources of finance that makeup the UK alternative market. With increased growth, however, comes greater competition that is expected to make a dent in UK bank profits of between 20 and 60 percent, according to a recent report from McKinsey.
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