FinTech 50 for 2015 is out – These are the top 50 FinTech companies in Europe. A good snapshot of where innovation is happening in FinTech. About 30% of the companies are in Payments. But the bulk of activity is in B2B ie software for banks/FIs.
US Fed has released an interesting paper on improving the US payment system. It is interesting for several reasons. First, it acknowledges that US payment system is way behind other countries. For eg, India is ahead with real time systems such as IMPS and RTGS. Also, it leads in adoption of standards such as ISO 20022. Second, it points out that all the countries that have been leaders have done so because of strategic reasons and because of mandates. This report, on the other hand, segments the market and finds the business cases. On the whole, US Fed finds good business case for some options without taking into account latent demand. It’s interesting because while India leads in payment system technology, it lags very badly in the technology adoption. Third, it considers “decentralized digital stores of value that can be exchanged” aka bitcoin with a central clearing system! In other words, bitcoin along with ACH instead of blockchain! Just shows how very little of bitcoin is understood.
Privacy at risk from Big Data – Simple report here and the full paper here. This essentially means that each one of us has a unique transaction footprint. If a small part is identified (as small as 4 transactions), the rest becomes visible (for as many as 90% of people in a study of 1.1 Million people).