Innovation, a favorite topic of debate in the business of technology, gets a FinTech work over in this week’s links. Plus more blockchain endorsements and reports, along with some timely cautions.
FinTech food for thought
Pascal Bouvier, venture partner with Santander InnoVentures, challenges the conventional notions of FinTech innovation. It’s often said that traditional financial institutions “notoriously do poorly with innovation. They are also beset by agency issues, inflexibility, bureaucracy,” Bouvier writes. But “will incumbents exhibit the same tendencies at such a pivotal point of transition to the new digital age? Or will they exhibit more resiliency as a matter of survival?”
The convergence of traditional and emergent FinTech will enable more fruitful conversations
Thus far, much of the FinTech conversation in banking consists of traditional bankers and their vendors speaking to each other and emergent Fintech ventures and their investors agreeing that disruption is coming, suggests consultant Bernard Lunn in a Daily Fintech post. Now “there is some convergence in the middle,” a change that is “leading to more productive conversations” as both parties reach the partnership level of maturity.
Innovation basics for community banks and credit unions
Yes, many in the financial services world are sick of hearing the word innovation. They feel as though they don’t have time to “innovate,” or they’re not sure what will work best. In a post for Finextra, Graham Seel breaks down how banks should approach innovation within their own organizations and areas where the innovation needs to occur.
Competition watchdogs to enforce smartphone banking revolution
Major innovation is coming to U.K. banking whether banks want it or not. The Competition and Markets Authority announced new rules this week requiring banks to allow customers to access their financial information via one mobile app by 2018, according to The Telegraph. The move will generate greater competition among financial institutions by having one place for consumers to access all of their account information and compare rates with different providers. It is designed to give people “proper control over bank account and money in general”.
No cash allowed: stores refusing to accept money
Though Massachusetts law prohibits credit-only policies, some businesses within the state have begun adopting no-cash rules for their customers, according The Boston Globe. The law forbidding no-cash policies has been on the books since 1978, but as more consumers convert to digital transactions, how will law enforcement uphold the regulations? And more importantly, will low-income patrons be discriminated against as they get left behind?