Speaking at the World Economic Forum in Davos, PayPal CEO Dan Schulman says lower transaction costs from fintech payment processors could save $28 billion and help 30 million people out of poverty; firm is seeking to build partnerships with payment companies and governments to lower transaction fees and advance digital payment services. Source
Robo advisor Wealthfront has developed a solution that allows employees to trade accumulated shares of initial public offering stock through a platform called Selling Plan; targets employees of newly traded public companies and employees receiving stock options for compensation; employees can use Selling Plan for free to manage shares of their stock. Source
Juzhen is developing new blockchain technology for banks that will focus on privacy, biometrics and access control; the firm is the largest China-based blockchain startup; it is working with the ChinaLedger blockchain consortium and has a thorough understanding of the Chinese market's infrastructure and banking culture. Source
ThreatMatrix announced its 2016 financial results with substantial growth in new financial institution customers; firm's business has been increasing traction, reporting $15 billion saved in fraud losses for its customers in 2016; revenue growth rates continue to be 50%; in 2017 the firm is planning for global expansion with an additional data center opening in in Reykjanesbaer, Iceland. Source
The comment period for the Office of the Comptroller of the Currency's fintech charter proposal closed on January 17 and the New York Department of Financial Services (NY DFS) was among the commenters; the NY DFS opposes the federal fintech charter; says state regulations have evolved to provide the necessary oversight; also notes that the regulations will create confusion, harm small business innovation, create monopolized institutions, increase competitive risks of non-bank entities and facilitate evasion of consumer protection. Source
Established fund management companies are leading the next wave of market computerization through investment in robo advisors; robo advisors offer automated investment options with lower fee structures; investment managers are buying and integrating these services to expand their offering and mitigate competitive factors; a partnership between John Hancock Financial and NextCapital is one of the latest examples; other deals have included SigFig with Wells Fargo and UBS, BlackRock with FutureAdvisor and Fidelity with eMoney. Source
According to a new report by Accenture and McLagan, which is part of Aon Hewitt a business unit of Aon plc, blockchain technology could reduce infrastructure costs for eight of the world's 10 largest investment banks by an average of 30%, translating to $8 billion to $12 billion in annual cost savings for those banks; key figures include a 70% cut on central finance reporting, a 50% cut on business and central operations, and a 50% cut on compliance. Source
Banks are integrating automation to help improve cost pressures yet competition from fintech companies continues to increase; professionals believe the market's fintech revolution will transform the industry and lead to greater automation, consolidation and fintech partnerships; banking automation appears to be one leading factor banks are focusing on as they analyze the market's competitive challenges; automation, blockchain and new technologies are all important topics being discussed at this year's World Economic Forum in Davos. Source
Motive Partners is launching a new venture capital fund this week at the World Economic Forum in Davos; Motive Partners plans to raise $150 million for the fund which will invest in fintech; LMRKTS will be one of the firm's first investments; LMRKTS is supported by ex-US Treasury Secretary Larry Summers and is focused on technology for managing foreign exchange transaction costs. Source