Are banks ready to put their money where their mouths are when it comes to fintech?

By now, almost everyone in the banking industry agrees that we are facing a perfect storm of changes that will forever alter the landscape for financial services. However, it still seems like a long way from talking about it to acknowledging the potential threats and challenges. And an even further way towards putting that knowledge into action.

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Open banking: A playbook for banks and fintechs

The landscape for financial services is changing, and the jury is still out as to how the endgame is going to play out. One of the concepts shaping this future is open banking. After looking into the subject, it is becoming clear that there is no one size fits all open banking strategy. Rather, there are several tactical moves that are being played aout by a variety of both banks and fintechs. No matter which strategic option(s) you choose to follow, open banking will fundamentally change banking the same way internet banking once did.

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Why Amazon is the most likely western tech giant to fully enter finance

Rumors of competition from the technology sector has been going on for a while in the financial industry, and last week the debate heated up when it was rumored that Amazon was considering acquiring Capital One. There may be some obstacles regarding this specific scenario, but it does not change the fact that Amazon already is well positioned to take a strong position in financial services regardless of regulatory barriers for structural growth.

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What could Facebooks European payment license mean for banks?

Early December, Facebook finally unveiled their newly acquired licenses for e-money and payment services out of Ireland. The rumors of Facebook entering the payment space in Europe has been going on for a while, ever since it was reported that Facebook applied for a money transfer license a while ago. Facebook is already in a unique position to disintermediate retail banks as the most powerful digital ecosystem out there for consumers. The key to Facebooks powerful position is the ability to evolve alongside changing user behavior, and so far, Facebook is excelling at this. According to a study conducted by pwc, 68 percent of bankers are concerned with losing control over their customer interface. A regulatory compliant Facebook should definitely make those concerns turn into worries.

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Open banking: The nature of digital ecosystems

The banking industry is facing many of the same perils as the telco and media industry has been though in the latter years, and the primary challengers are the same ones that have been feasting at the media and telco’s profit margins for more than a decade. These are the four horsemen of the incumbents apocalypse (Google, Apple, Facebook and Amazon). While they are vastly different in many ways, they all share the traits of a succesful digital ecosystem.

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A talk with ThoughtMachine on VaultOS and the future of core banking

Core banking is considered for many as the gordian knot in the digitization of banking. As a result, a vast majority of fintech companies are innovating around the core, leaving legacy IT to the banks. However, some entrepreneurs are audacious enough to attempt to renew core banking from scratch. I had the pleasure of meeting Tristan Fletcher of ThoughtMachine in London earlier this fall, and used the occasion to ask him a couple of questions of which problems ThoughtMachine is attempting to solve with VaultOS.

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Intelligent automation and the future of finance

Artificial Intelligence (AI) is likely to provide opportunities to deliver smarter solutions for end users and transform the banks processing capabilities. Last week, UBS invited leaders and experts from the financial industry, fintechs, academia and regulators come together to discuss the future of Intelligent Automation and start to build a common understanding of what a successful approach would look like. I had the pleasure of attending this event and we explored the most relevant issues covering where, when and how this will happen.

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Open banking: An introduction

The landscape for financial services is changing, and the jury is still out on how the endgame is going to play out. One of the concepts shaping this future is open banking. This development emerge out of the payment area where a perfect storm of shifting customer behavior, regulatory changes, the threat from digital ecosystems such as Google, Apple, Facebook and Amazon, and the quest for new business models are driving banks toward the open banking paradigm.

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Will the rise of Robo-advice change wealth management for good?

The concept of robo-advice – the use of automation, investment algorithms and an online interface to build and manage portfolios of exchange-traded funds (ETFs) and other instruments for investors – has gained significant attention within the wealth management industry. Is this pure hype or is there a chance robo-advisers will profoundly alter the existing business models by changing the way investors seek exposure and even how portfolio managers manage their funds and discretionary mandates? Will robo-advise do the same for production as mobile did for distribution in wealth management?

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How AI will reshape everyday banking

The greatest fear for banks in the changing landscape of financial services is to lose grasp of the customer relationship and become utility commodity providers, or “dumb pipes”. This fear is strengthen by changes in consumer behavior and expectations, regulatory changes such as PSD2, new business models and new technology. Artificial intelligence is one of the technological paradigms that is set to transform financial services in the years to come.

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The potential benefits of artificial intelligence in the compliance function

Artificial intelligence is one of the technological paradigms that is set to transform financial services in the years to come. This includes every aspect of the bank, ranging from customer interaction through chatbots, process automation and risk and credit assessment just to name a few. However, the compliance function is one of the areas where AI will have a profound impact on banking.

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