IBS Journal April 2016
MEFTECH 2016: FinTech leads way in new industrial revolution
We’re in the fourth revolution of human history, the technology revolution, and FinTech innovation is the tip of the spear. That’s according to Chris Skinner, CEO
of the Financial Services Club. Speaking to delegates at MEFTECH 2016, which took place in Abu Dhabi during March, Skinner said that while it may seem like the rate of innovation is slowing, people thought that the horse and carriage was the pinnacle of invention at the start of the industrial revolution. “We’re only 70 years or so into the
information revolution,” he commented. The first steam patent was made in the late 17th century and the last at the start of the 20th, so according to Skinner there is still a long way to go. Banks were emerging in the midst of
the industrial revolution, being backed by governments and this is where the trust in them as an institution first took hold.
Yet we’re still using methods that were popularised during the 19th century. The fact that cheques can take up
to 28 days to process payments, noted Skinner, is “stupid”. While banks still use outdated methods, startups like Venmo make multi-millions on very simple ideas. The internet, he added, enables ideas to go viral. The question of how to bring “the hip-
sters and the suits” together is a major one for the industry. Regulation and technolo- gy are on opposites sides of a cool/uncool divide. Africa, he continued, is a potent example of how innovation can change an industry landscape. 58% of Kenyans are using mobile wallets, and now the telcos across the continent are coming together to enable pan-African payments. So what’s the solution, blockchain? “Blockchain is boring,” answered Skinner. Banks are using the term in the same way
they have used the cloud and Big Data – as a catch-all word for innovation. The reason FinTech is “so hot” is down to the fact that it is moving financial operations from the boardroom to the internet. There is time to adapt but that time
is running low. Customers don’t want to go to 100 different companies to get their lending, investments and payments con- trolled. They want to come to a name and an institution they know and recognise. Banks have to act to utilise that brand recognition. Skinner concluded by stating that we
can expect much more in the future. “After all, have you even seen Captain Kirk take his wallet out?” Look out for a full review of MEFTECH 2016 in the next issue of IBS Journal.
Alex Hamilton
22
© IBS Intelligence 2016
www.ibsintelligence.com
news
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
