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.

Curva

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

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

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.

DigiSEq

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/.