Federal Regulators Rein in Unregulated FinTech Sector

fintechFinTech has proven to be a disruptive and effective tool within the financial sector. For that reason, federal financial regulators have been introduced policies in order to handle the unregulated subsector, in the name of customer protection.

The new technologies’ interaction with the financial service industry has improved consumer and operational engagement capabilities by leveraging digital functions, analytics, and data management. FinTech has made it easier to create opportunities that allow for industries to address issues  with poverty, financial inclusion and access to capital, and it’s doing so at an accelerated speed.

Startups that center around FinTech provide alternative lending solutions and mobile payments. This has upset the status quo, regarding traditional financial firms because patrons are granted access to financial alternatives, and cheaper and more accessible venues to make payments and obtain capital. The public no longer has to be tied to banks and other regulated financial institutions. For a long time, FinTech operated alongside the traditional financial sector but was some divergence. The unregulated subsector has introduced benefits and harm to the marketplace, which is why the government developed federal financial regulations and policies to address issues within the unregulated Fintech sector.

For some time, there has been a push from financial regulators to develop policies that help to foster financial innovation while providing protections for consumers. Earlier this month, the Treasury Department published its  white paper on online marketplace lending industry, which promises to establish robust borrower protections, effective oversight, support for the expansion of safe and affordable credit, and the promotion of a transparent marketplace.

The innovation within the financial sector could act as a double-edged sword within the financial sector, due to the possibility of abusive practices. Recently developed regulation should help to foster productive balance, consumer protection, and innovation.

Altfi is a FinTech segment, offering finance portals for equity and debt, which helps businesses access capital from private equity groups, venture capitalist, bypassing banks, and individual investors. This financial market was opened up because capital raising was reading change following the collapse of U.S. and worldwide markets.

RegTech is crucial for Fintech B2B and has changed the way accounts are opened with ID verification. The traditional pillars rely on regulatory bodies to protect them, which is an issue will each segment in FinTech. The evolution of RegTech makes it easier for companies to reach their goals.

Each segment of FinTech is changing, which has helped to gather each aspect on one platform, aligning itself with the needs of businesses, which has allowed Fintech growth. There are individuals staffed in the FinTech industry, whose entire job is committed to due diligence, the prevention of fraud, and building credibility for the investor base. Investors from the investor and private equity sectors rely on measures being met before they commit to any deals.
The portals are changing the way that businesses access capital. However, portals are facing on-boarding and post-transaction compliance that’s related to business. The Fintech sector norms will soon grow antiquated in the face of rapid industry evolution. There’s a great deal of work to do, and leaders in this sector, such as Microsoft, Alibaba, and Alphabet are making being more pronounced, and many others step onto the scene.

So, how does one influence FinTech buyers?

fintechConsumer behavior has tooled and enabled the FinTech market, and vice versa. Because of this, the market has changed to become far more competitive, challenging nontraditional and traditional entrants. Investment in technology by financial institutions has led to reduced costs, enhanced security, the introduction of new products, improved customer services, and compliance with new and complex regulations. Globally, bank spending on information technology is expected to hit $150 billion in 2018, rising approximately 19.9 percent.

This fast-paced growth has led to numerous challenges for FinTech vendors, including enrollment in an oversaturated market, a lengthier and more complex sales process, and failure to gain marketing support. Also, for those wishing to interact with financial institutions and vendors during the sales process, it may be difficult to know what influences FinTech buyers.

So, how does one influence FinTech buyers?

Well, the easiest way to learn how to influence FinTech buyers is to understand who they are and how they function. Fifty-two percent of information technology decisions involved ten or more individuals, with the average being 36 people. Approximately 15 percent of decisions made involved 50 or more people. To get on a buyer’s radar, being able to provide trusted advice is critical, which is normally made possible through communication with industry consultants, peer relations, industry analysts, and internal business analyst. Also, content and SEO ranking has been identified for “long list influencers,” who look to vendor webinars, trade shows, vendor led events, direct marketing, trade media, business media, and web searches for valuable insight. They’re least likely to deem advertising or national media as credible sources as a key influence.

Also, those interested in FinTech buyers should have an understanding of how to meet buyer needs, which can be met through thought leadership, delivering unique insights, building credibility through third parties, delivering cutting edge technology and identifying why a particular vendor is different than any other. It’s not at all surprising that value because a significant fact for buyers, who prefer hard numbers and deliverable, and require evidence that vendor can do what they advertise they can do.

There is information not being made available to FinTech buyers, such as prominently being evidence-based data. Buyers want evidence that vendors have experience delivering deliverables and hard numbers to similar companies. They also would like access to industry feedback, customer references and case studies, and demonstrable track records. Ultimately, they want guarantees in regards to visibility, differentiation, and evidence –which can be provided via a number of channels and approaches, whether through analysts, trade media, or influencers. Internal business analysts, reputation, unique insight, credibility, and hard evidence are more important than social media, national media, and advertising.

Fintech Startups Aren’t Going Anywhere & They’re Changing the Way We Do Business

23273130005_f8c800bcfe_oThe sizzling hot buzzword, fintech, an amalgamation of finance and technology, has appeared within the pages of countless publications. This term packs power because of  its disruptive abilities. In fact, Netflix, Apple, and Facebook are prime examples of companies that have disrupted industries and sparked new initiatives and startups. Fintech is impacting every modern industry.

Apple and the other companies understand that fintech plays an active role within their industry, altering the way money is invested and managed. Also, it alters the way people get loans and do financial research. For this reason, fintech will only get bigger. Last year, global investment into fintech companies reached nearly $20 billion, with most of that backing coming from venture capitalists. Within just two years, the number of venture capitalists acting as investors increased by 106 percent in 2014.

OurCrowd is a company that allows the public to invest alongside angel investors and venture capitalists, with funds directed toward pre-vetted startups. Platforms, such as Slingshot Insight, is revolutionary. It brings crowdfunding to research, enabling the public to pool money in order to access analysis and interviews from industry experts. This can be helpful for those who seek advice from doctors about digital medicine and biotech stock. The platform TipRanks is now a go-to source for those researching analyst ratings. This particular platform makes it easier to select the right select the correct stock while the application Quantcha makes it easier to search through trade options.

When it comes to finding information about an active return on an investment or the performance of an investment against a market index, Prattle, Running Alpha, Metricle, and HedgeSPA are valuable companies, offering investors unique data points for investors. Also, for those interested in ways to organize and analyze new data, companies like uxMarketFlow, Ormsby Street,  and Alpha Hat are incomparable resources. SeedFeed is valuable for those interested in a comprehensive platform that has aggregated crowdfunded real estate investments.

All of this is to say that fintech is more than investing, it’s responsible for alternatives in lending and financing. Credibly and similar companies are responsible for helping to rescue smaller businesses, and Financial lends a hand by helping businesses connect with the best possible lenders to provide owners with personal loans. Once a business owner has secured a loan and found that they’re struggling with repayment, they can turn to CommonBond, which helps them to refinance.

While fintech is about far more than investing, it has made investing easier for those without the time or energy to do their own research, or they require recommendations or direct stock picks. Tradespoon, Trade Ideas, Stockal, and Vetr are some of the companies responsible for educating men and women about investing and trading.

While fintech is relatively new, it’s already changing. Traditional institutions are bending to adapt to new competition, proving to be better for investors. The fintech realm will only expand. The aforementioned companies are just a small chunk of the industry, and what’s happened barely hints at what’s to come. Traditional brokerages and banks will introduce their own fintech product, which will be better for investors looking to keep their funds attached to brick and mortar institutions.


David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.com; http://davidemickey.net/; and http://davidemickey.org/.

4 New Fintech Startups Primed to Take on the Finance Industry

18293552513_e473df2764_oThere were four new fintech startups recently fingered at London’s O2 arena, where companies pitched to investors and enthusiasts. The event was hosted by Barclays and Techstars, which is one of the world’s largest startup accelerators.


One of those fintech startups happens to be Cuvva, which is a British startup that permits users to purchase car insurance for someone else’s vehicle by the hour. This is done via a smartphone app. This enables friends to use another’s car legally, equipping them with flexible insurance. The iPhone app (the Android app is still underway) verifies users by taking a photo of an individual’s driver’s license and a selfie. A number of metrics are taken into account to calculate the cost of hourly insurance. The developer hopes to want to maneuver the app into a marketplace platform, and he’s in major car insurer to purchase hourly coverage of their own car.


Zighra, another selected startup, has devised a method by which a user’s behavioral traits, rather than eye scan or fingerprint is used as a way to gain entrance to one’s smartphone. The pressure applied to the screen of the phone and the angle in which they hold their phone. This tool is used as an application for other institutions, and will not be a separate app. This proposes an invisible layer of security that reacts to interaction with the screen. Interaction with the screen generates an individualized score by the user, which differs from anyone else. Presently, Zighra is working with one of the nation’s top insurance companies and Canada’s top two banks to integrate solutions into their program.


Helm is yet another incredible fintech startup, which was founded by an ex-JPMorgan compliance chief. The app can inform businesses when they aren’t meeting regulations and laws. The software stands as a database that houses rules, and it notifies compliance managers at firms. This removes the need for lawyers and eases steps toward compliance. Additionally, Helm enables regulators to consult institutions via the platform forthcoming regulations.


Co-founded by Terrie Smith, one of the developers of Apple Pay, is DigiSEq, a platform that allows companies producing devices with devices with near-field communication technology, removing the complexities of security and delivering secure application data. The company partners with a number of manufacturers to make sure they offer a complete array of services.

Fintech will truly bring forward a future where consumers can feel secure, protected, and informed.

David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.comhttp://davidemickey.net/; and http://davidemickey.org/.


Green Finance Becoming a Reality

Palm with a plant growng from pile of coins

The European economy is recovering – albeit slowly – and sustainable finance may just be a major component of growth. The urgent need that exists to invest capital into sustainable infrastructure and technology may contribute to driving job growth in European nations. Individual investors, as well as national institutions, are prioritizing the need to invest in sustainability. The new movement is sure to become a contributing factor in Europe’s overall economic growth.

Individuals, companies, and central banks are supporting the transition to a greener economy. Surprisingly, Europeans are putting more of their savings in assets supportive of sustainability, while European financial institutions recognize the importance of sustainability in their business models. According to Achim Steiner, Executive Director of the United Nations Environment Program, the transition has been underway for sometime but has quickened since Europe’s major climate agreement. This and other international agreements have signaled to global markets the importance of sustainability and environmental concerns on future global developments.

Some major European institutions are already attempting to influence financial policymakers. The Bank of England has delivered an assessment of what climate change can mean for the insurance sector. France has introduced new labels to help consumers choose financial products that are sustainable, or at least, sustainability-oriented. Other countries like Spain, Germany, and Portugal have undertaken similar policies. Sweden, on the other hand, has enacted policy to link the financial world with sustainable development.

According to Steiner’s article, the European Fund for Strategic Investment approved 42 new projects, of which more than half of those are sustainability-related. Climate action, resource efficiency, and sustainable development are some of the included components. The Capital Markets Union even provides easier access to sustainable finance through financial instruments like green bonds, which facilitate financing of renewable energy and energy efficiency projects. Major European companies like Allianz, and Amundi are committing themselves to these greener initiatives by aligning their portfolios with carbon-reducing assets.

Key elements of these efforts include an array of other financial strategies. These include: “reallocating capital, assessing risk, clarifying responsibility, and improving reporting. ” The movement is becoming global as well. China is hoping to raise 400 billion in green investments every year for five years, mainly from financial and capital markets.

Green finance is becoming a reality, and as global concerns of climate change continue to rise, so will the need for financing in sustainable projects. If you liked this post and would like to read more about global finance, check out my twitter @DavidEMickey for more.

David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.comhttp://davidemickey.net/; and http://davidemickey.org/.

IHS and Markit Set to Merge


In late March, global data giants Markit and IHS released that they will become a single entity. As a result of the merger, the newly formed company will be worth around $13 billion. Shareholders from IHS will maintain 57% of the company while Markit will hold the rest at 43%. The new company’s name is set to be called IHS Markit – to ensure both companies are being fully recognized by the merger.

The world headquarters for the new company will be based in London. There are several reason the capital of England was picked, but the main one seems to be for tax purposes. England will only charge the company 20% in corporate tax as opposed to the 35% that the United States would. It doesn’t mean a US office would not be present, though. Several key operations would still be based out of Englewood, Colorado, where IHA is currently headquartered.

IHS, a US-based company, was first found in 1959 by Richard O’Brien. Focusing on providing their clients with accurate analytics and information, they strove to be the best in that key industry. With a rich and detailed background, IHS continued to grow over the years as they went on an acquisition spree over the past several years. By executing a growth strategy, the company bought out rival businesses that focused on analytics and data providers. In 2015 alone, they bought out four different companies.

Markit is a UK marketing data company that was founded in 2003. In 13 years, the company has 13 different offices around the world that employed over 4,200 people. Besides the substantial growth, Markit went public in 2014. The company’s IPO raised around $1.3 billion on NASDAQ when it went live. It was soon after that IHS approached the marketing firm with talks of a merger.

IHS CEO Jerre Stead released a statement about the merger: “This transformational merger brings together two information-rich companies to create a powerful provider of unique business intelligence, data, and analytics to a broad and complementary customer base. IHS Markit and its shareholders will benefit from enhanced product innovation to deliver strong returns across economic cycles.”

Mr.Stead will act as CEO and Chairman of IHS Markit until 2017 when he is set to retire. The current CEO and Chairman of Markit, Lance Uggla, will act as the President until Mr.Stead retires where he is set to take over the head position. News of the merger was met with positivity as the deal is set to be finalized in the later half of 2016.

David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.comhttp://davidemickey.net/; and http://davidemickey.org/.

Voice Recognition – Bank’s New Solution To Passwords


One of the main struggles in many people’s lives is trying to remember their passwords. With more companies requiring passwords have different characters, upper and lower cases, plus a unique symbol, it makes it difficult for people to recall them off the top of their heads. Good news lies on the horizon though. Banks have been working on a solution to solve this by trying to implement voice recognition as your password instead.

On February 19th, 2016, HSBC announced that they would start implementing “voice biometric security technology” for the clients in the UK. The technology allowed banks to implement a program that would allow clients to be recognized by their voice when attempting to sign into their individual bank accounts. 15 million people are expected to have this program implemented by the 2016 summer. In addition to the voice recognition, the bank released a “touch ID” technology. For those who choose not to use their voice, they will be able to use their fingerprints to sign in.

HSBC spoke about how they plan to introduce the voice and touch technology into the Mexican, Canadian, French, American and Hong Kong markets in the near future. However, they did not release a time frame of when that would occur.  The bank is not the first financial company to offer this specific technology to its clients. Barclays, Vanguard and Banco Santander Mexico have already weaved it into their client’s accounts.

Nuance Communications are the company that supplies HSBC with the voice recognition technology.  They began to research vocal biometrics back in the early 90’s. It wasn’t until 2012 that banks began to have a demand to obtain this technology for their retail banking clients. Before that, many wanted it solely for their high profile clients and corporate wire transfers.

Many banks have shifted to the technology after becoming frustrated with passwords. In a 2014 study released by Verizon, two-thirds of all data breaches occurred from passwords being stolen or weak. As many banks need to reset their passwords often, it makes them vulnerable to hackers. In addition to the higher risk of attack, it often is costly and time-consuming to reset passwords.

The change from traditional passwords to voice recognition will take several years as the banking industry has millions of consumers that would need to adapt. As a high stake move, banks will move forward cautiously, but it’s more likely clients will see it mixed in with current trends.

David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.comhttp://davidemickey.net/; and http://davidemickey.org/.

Invest in Recent College Graduates

Today, a college degree does not equal a job offer. With the increasing amount of recent graduates flooding the workforce, there is simply not enough supply of professional jobs to meet the demands of an ever larger labor force. As a result, a college degree has lost its negotiating power, and many are left jobless without the work experience or skills necessary to grant them a job. However, recent college graduates can still present an array of benefits that older, more experienced workers simply cannot offer. The generational gap may indeed provide both pros and cons between possible employees, presenting employers with various options for both types of applicants. As an employer, a simple cost benefit analysis will allow you to weigh the benefits of hiring a recent college graduate.

Firstly, what are college grads doing to stand out in the job market? There are certainly a few possible steps recent college graduates can take to set themselves apart from the general applicant pool. The first obstacle recent college graduates meet is the experience trap. Most employers look for applicants with at least a year or two of experience in the relevant field. Recent college graduates should look into finding internships and temp roles that help them fill in any gaps in their resume. Another way of defeating the experience trap is by obtaining licenses and certifications in relevant fields. For example, if you’re looking into administrative or office management roles, Alex Vanover of business.com suggests obtaining a Microsoft Office Specialist (MOS) Certification, or becoming a Certified Administrative Professional (CAP). If you’re looking to fill an accountant role, a CPA or CMA is professional certifications that are well-regarded in the financial world. If you’re looking for minor roles, a Quickbooks Application Certification will work just fine. Such certifications prove to employers your commitment to the field you’re looking to break into.

Employers though worry that recent college graduates are simply not up to the challenge of a full-time job. A full-time job entails responsibilities that recent college graduates simply have not proven to fulfill. Therefore, it is certainly a risky proposition for employers to invest the time and effort necessary to train this demographic. However, some of the benefits recent college graduates bring to employers are quite great. For example, recent college graduates naturally require less compensation for their work than those more experienced workers. These individuals expect lower salaries because of their lack of experience, compared to individuals who already have years of experience ahead of them. Another benefit includes training. Training individuals on your company’s’ methods may be difficult when an individual has other methods already ingrained. A recent college graduate is much like a clean slate; they can be easily taught your methods without the worry of other ingrained methods interfering in the process.

If you’re an employer, definitely take a moment to consider hiring a recent college graduate. The benefits of hiring them should far outweigh any risks you may be concerned about. If you liked this post, check out my blog @David E. Mickey for more news and info. Thanks for reading!

David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.comhttp://davidemickey.net/; and http://davidemickey.org/.