Author: tmacdonald

Technology consistently shapes how we live our lives, whether we like it or not. The increased use of smartphones has given rise to a number of advanced applications that make activities and chores a breeze. One such type of application is mobile banking, which allows individuals to pay bills and manage funds with the touch of a button from anywhere. Money is pouring into the development of these banking apps as investors recognize the trend from traditional in store banking to mobile banking. Investors recently raised 40 million dollars for a European-based digital only bank.The reason for such heavy investment is that 1.9 billion users are expected to shift to mobile banking by 2019. With this many people shifting over, there is clearly opportunity for companies to explore this market.

 
I do not think the question that has arisen is whether mobile banking will become popular or not, but instead what companies will make the shift quicker and more efficiently. As of right now, the major banks have made a push towards mobile banking but the landscape of maintaining their store locations is still up in the air. These stores are expensive to operate and are not driving much traffic as is evident by the number of users switching to mobile banking. I believe many of these facilities will transition to smaller offices or even get shut down altogether.

http://www.atimes.com/financial-technology-making-app-based-banks-future/

Financial departments are constantly being transformed by the new financial technologies introduced from cloud computing to artificial intelligence. They are being forced to adapt to the new methods of reporting and budgeting. This struggle raises the question as to what the CFO’s role will be in the future and whether this role will merge with the Chief Technology Officer as the two departments become interrelated. This switch depends on the organization and how both roles pair together.

 
I believe that these are two tremendously important departments in any organization and should remain separate given the uniqueness of responsibilities. While IT and finance will continue to grow closer together, they will always have their own roles and require specialized skills. I can see, however, the two working as one in smaller companies or startups with fewer resources. It is important for individuals to have an understanding of both departments as the two continue to develop. Nowadays, students are encouraged to study technology and financial systems as these are always changing fields that can require a specific skill set.

https://www.raconteur.net/business/finance-tech-puts-cfos-in-control-of-it-budgets

One of the biggest topics that surround any new financial technology is security. The reason for this is because of the private information that financial technology provides, transfers, and creates. While Venmo is not new, its popularity is continuing to grow and thus questions of its security are constantly raised. The application was launched in 2009 and began as a text messaging service but was soon transformed to a financial payment service. The service allows an individual to transfer money with the tap of a button, but with ease for users comes ease for hackers. Venmo has set a number of security checks in place to prevent any malicious behavior from taking place. These check include bank level security and data encryption as well as the option to set up a pin. Venmo also takes responsibility for any account losses if an individual’s information is compromised.

This application has become popular among young people as it is common for groups to use the app to split bills. It is comforting to know the sorts of precautions that the application takes to protect my information. One tactic that is used by fraudsters is sending the money, which provides a notification to the receiver. In the meantime, the sender can cancel the payment without the receiver finding out. These sorts of tactics should be made aware to users so they can be wary of these types of strategies. All in all, Venmo is a very useful application and as long as there are no major fraud cases, I would expect the usage to continue. It will be interesting to see if the app will start charging individuals for individual transactions or instead offer advertising for the app.

 

http://www.kcra.com/article/is-venmo-actually-safe-to-use/8989323

Banks are beginning to feel the pressure placed on them by FinTech startups looking to disrupt the traditional method of banking. Companies are targeting the customer experience and building off the growing use of mobile banking and easy access to banking operations. Banks do have a large advantage when it comes to the infrastructure associated with payment transactions and the many risk and compliance standards. The capital and regulatory speculation makes it hard for startups to keep up with banks. Instead, it is recommended that the two (large banks and startups) utilize each other’s resources in a mutually beneficial manner. One example is the banks’ close relationships with sales representatives and local integrators, which can be leveraged by the FinTech industry to better understand a customer’s needs and find a new point of access for their products. In turn, banks can utilize the large amount of data they have access to in order to develop easy to use interfaces for their customers.

So often companies focus on overpowering their competition instead of sharing resources to get ahead together. I enjoyed how this article identified the threat that big banks are facing and turned it into a positive for both parties involved. Ido believe that is important for banks to recognize customers’ desires for mobile banking and other easy forms of money management. It is also important to recognize that these new forms of technology must be slowly integrated given the importance of security when it comes to these sorts of applications.

 

http://themarketmogul.com/banks-take-advantage-fintech/

Global FinTech investment soared in 2016 to 17.4 billion dollars, an 11% increase from the previous year. The interesting comparison came between the leaders, U.S. and China, with 6.2 billion dollars for 650 deals and 7.7 billion dollars for 28 deals respectively. I believe this distinction is something worth exploring about the two countries. The most reasonable explanation is that U.S. investors are more willing to invest at early stages in the FinTech startups for less money initially. This strategy offers greater risks and greater rewards for the daring investors that choose to take this route.

Ant Financial led all firms with a massive 4.3 billion dollar venture round, the largest in history. This high valuation can most likely be attributed to the many acquisitions and the announcement of the company’s large debt fund. It was also interesting to see the heavy impact that Brexit had on markets, resulting in a 34% decline in FinTech investment.

All in all, this article had promising results when reflecting on the 2016 FinTech investments further illustrating its trending value. When selecting an article, I was wavering between this article regarding the noteworthy investments increase and another article that discouraged anyone thinking of starting a FinTech startup. The drastic differences in the two articles showed the varying opinions surrounding FinTech and, furthermore, the risk/reward associated.

 

http://www.forbes.com/sites/lawrencewintermeyer/2017/02/17/global-fintech-vc-investment-soars-in-2016/#27b2c5ad434a

Financial technology is the driving factor in the development of many industries and economies across the globe. Developed countries are investing huge amounts in such research and markets, while other countries have failed to setup any sort of system for adopting such technologies. The impact that financial technology has had is evident in the West through a person’s ability to conduct online transactions or a company’s ability to improve its delivery service through the use of Artificial Intelligence (AI). Rwanda is one example of a fast growing economy due to the implementation of beneficial fintech policies. The government has focused on making it easier for citizens to conduct financial transactions instead of having to walk 10km to access financial services of any sort. Rwanda’s goal in the next 10 years is to become a technology hub and cashless economy.

With the constant development of new financial technologies and the large investments some countries are able to make in the research, the gap between developed and developing countries is increasing even further. It is interesting to see the major developments that countries like Rwanda have had in recent years and their goals in the near future. I believe that the success of countries depends on the commitment of their governments as is evident by the sort of policies implemented. There is a sort of responsibility placed on successful countries to offer assistance to those struggling to implement financial technologies or even gain access to them. The next few years will be telling in the race to keep up with the changing financial technologies.
http://www.newtimes.co.rw/section/article/2017-02-07/207756/

NYCA Partners, a New York based venture capitalist firm, announced its closing of the latest venture capitalist fund (125 million dollars) aimed at backing financial technology startups. The company continues to seek out the latest Silicon-Valley startups to make a quick penny in such an aspiring industry. Following its initial $30 million backing in 2014, the firm has continued its growth while providing financial support for a number of companies, including a few public ones. The first wave of financial technology was focused on building brand name products and services, but now the hype is around partnering with local startups to find the newest technology.

I find this topic very interesting and relevant given how common startups are around the Silicon Valley. The upward trend in large investments is very fitting given how much such technologies and ideas can sell for. While, the article did not go into specific details about the companies they have backed in the past, I am interested to research the sort of returns that its investors have received. While, 125 million dollars may sound like a lot, I expect this number to keep rising at exponential rate in the next few years.

 

http://www.reuters.com/article/nyca-fundraising-idUSL1N1FH01U

A startup in Africa has begun an attempt to stop property fraud through the use of blockchain technology. This service allows users to search for specific land information and perform property transactions. The goal behind the service is to provide people with the ability to receive land transactions like mortgages. This makes it easier for financial institutions to lend to people in emerging countries. The startup, BenBen, believes that secure land information with fast transactions will encourage property investments. Without the service, the process of registering land can take two years, which allows individuals to commit the fraud.

Blockchain is becoming a popular tool in countries with unsecured financial systems. Allowing people to feel safe when transferring money or applying for loans is a major step in developing a country. Blockchain refers to a ledger of transactions that can only be changed through consensus among the users. I find the concept interesting given the fact that there is no overseeing authority but the system is still so secure. I am interested to see if new forms of fraud will infiltrate the new transaction process.

 

 

https://www.cryptocoinsnews.com/blockchain-tech-used-prevent-property-fraud-africa/

There are a number of global technology companies entering the Korean market. Technology is playing a bigger role in money transfers, transactions, and consumer banking. The two innovations that have been incorporated have been blockchain technology and artificial intelligence. These forms of technology are currently being used to challenge the big players in the markets by attracting new customers through ease of use and efficiency.

New startups are constantly challenging traditional banks to attract customers through the newest and most secure form of technology. I believe that major banks will acquire small startup financial technologies to attempt to gain a competitive advantage over other banks. It remains to be seen what sorts of technologies will prove to change the market as a whole, but when it comes to banks, security is the most important factor. Artificial intelligence appears to be the closest form of financial technology that could be incorporated at the moment.

 

https://www.cryptocoinsnews.com/bank-korea-fintech-companies-will-reshape-financial-industry/

Hackers are constantly coming up with new ways to commit fraud as it relates to real estate agents and their clients. The issue of securing who can access a transaction management system is becoming more important. Hackers use phishing emails to gain login credentials to such systems and identify target transactions along with client information. This allows the offenders to request wire transfers at the appropriate time to an account that the hacker can access. This security issue is not surprising given the fact that so many transactions take place online. In addition, communication commonly takes place through email or unsecure messaging further allowing hackers to gain private login information. Therefore, partial responsibility falls on the information system login to provide necessary security to prevent such fraudulent behavior from occurring. Segregation of duties and restricted access can be two methods to further provide security to a transaction management system like the ones hackers are exploiting.

 

Citation: “The Latest Evolution of Real Estate Wire Fraud.” RISMedia. N.p., 13 Jan. 2017. Web. 15 Jan. 2017