Disruption – 4BY90

10 take outs on the Open Banking API Framework

February 10, 2016February 11, 2016 APIs, Disruption, Open Banking 0 Comment

The open banking framework was published this week by the open banking working group. Here I share my 10 most salient take outs in 10 slides. Before we start, I think they have done a tremendous job. It’s an excellent document, the proposals are bold, well presented and discussed. The work is definitely not over, but it’s indeed promising and it should have a material impact on legislations like PSD2. I do think that they are on the right path to meet their mission statement: Unlocking the potential of open banking to improve competition, efficiency and stimulate innovation Here are my key takeouts in 10 slides: 1 -Data, API, Security 2 – A 3 party model 3 – Data: portable, explicit consent and specific usage 4 – A rich variety of data sets 5- Data sets: more granular details 6 – Example: 6 potential propositions enabled by…

The much better challengers

January 26, 2016February 1, 2016 Disruption, Innovation, Retail Banking 0 Comment

Part 2 – Why challenger banks need to be 100 times better than incumbents In my previous article I attempted to reframe the “Fintech debate” into one centred around its goal (competition) rather than its means (Innovation, Fintecth, etc.). In this piece I would like to offer a framework to discuss what an overall banking proposition is and why one will be better than another. This will lead me to argue that a challenger will have to be 100 times better than an incumbent to challenge at scale. What is a bank made of? First I would like to propose a simple model that will give us a framework to discuss the competitive advantages of different retail banking propositions. Let’s consider a retail bank to be made up of 4 core blocks: A block that makes it profitable and ensure it…

Fintech stats and fallacies

December 18, 2015January 29, 2016 Disruption 0 Comment

The rise of Fintechs (true) and some nonsensical conclusions you can reuse in presentations… I would like to share with you the conclusions of some (not) in depth analysis I have conducted, all supported by graphs (i.e. it must be true). 2015, the Fintech year? The above graph shows the rise in searches on google involving the word “Fintech”. That’s a truly remarkable graph, illustrating the increase in interest for Fintechs during the course of 2015, the word itself appearing as early as 2006. It will be interesting to see the trend in 2016. Verdict: conclusive Will digital transformation of big banks manage to fend off the threat of disruption? Yes! It seems that in 2015, according to google searches, Digital transformation has succeeded in fighting off disruption. Maybe not.. Apologies, actually it seems that even with the numerous digital…