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Open Sesame! Give Me Some Credit

In the story of Ali Baba and the 40 Thieves, the magical word “sesame” was used to open the seal of a cave where Ali Baba found hidden treasure. In China today, the same word is connected to another kind of magic, one that reveals hidden identities of the socially and economically disadvantaged. Sesame Credit (“芝麻信用” in Mandarin) is a product launched by Alibaba that pulls from transaction records on e-commerce platforms to understand a person or company’s creditworthiness.

To Understand the Future of the Financial Services Industry, We Must Look Beyond FinTech

While businesses are catching up with the rise of e-commerce and the mobile-first world, physical interfaces altogether are gradually falling into obsolescence. The year 2017 gives strong reasons to believe that working on the enhancement of the experience with any physical interface could be a wasteful attempt to better feed a horse instead of investing in a car (if we were to use Ford’s terms).

Fintechs and Banks: An Unequal Partnership

Years ago I consulted with the legacy Wachovia Bank, headquartered in Winston Salem. Back then the bank-teamed credit and line bankers on each commercial loan, terming their working relationship an “equal partnership.” In fact, when you spoke with management offline, many admitted that the credit people were a bit more equal than line personnel. That situation reminds me of what is developing between Fintechs and banks; the nature and extent of their “partnership” appears to be dictated by a bank’s limited requirements and demands, not the Fintech’s capabilities or desires.

Can 'fintech' innovations impact financial inclusion in developing countries?

Financial technology, “fintech,” has been reshaping the financial services industry with the level and speed of innovation that’s simply fascinating.

A month ago, my colleagues and I attended the 5th Annual Lendit USA conference to check out about the latest innovations and thinking in this field and see how we can apply it to our work.

3 Reasons Why Collaboration Between Fintech Firms and Banks Makes Sense

The battle between banking behemoths and new-age fintech firms may seem like the classic David versus Goliath. But dig a little deeper and there may not be much merit in pitting one against the other.

On the surface, one seems like an antiquated giant that’s hard to beat and the other is young, relevant and oh so agile. Fintech firms have the advantage of being able to launch with disruptive, new technologies in a relatively short time. Banks have established brand loyalty, decades of experience, and most importantly, financial muscle.

The Distributed Economy: Four Ways Blockchain Can Transform MSMEs in Emerging Markets

Together, micro, small and medium enterprises (MSMEs) are the largest employers in many developing countries, yet their viability suffers from limited access to savings, insurance, credit equity and payments services. According to the International Finance Corporation’s Enterprise Finance Gap Database, there are 400 million MSMEs in developing countries, of which 40 percent are unserved.

Islamic Finance and Social Investment Forum, Muscat, Oman, 21 February 2017

I got to add a new country to my list this week, as the invited speaker and moderator for this very interesting meeting organized by the World Bank Group, the WSF, and the Islamic Development Bank of Oman.  Oman, like many of the GCC countries, is facing a transition from an oil dependent past to a future requiring greater diversity in its economy, and a more substantial contribution from the private sector.  With a larger population, and much smaller expatriate population than many of its neighbors, Oman may be feeling a greater urgency to make this transition, particularly following the o

Fintechs That Caught my Eye at Paris Fintech Forum

Now I’m prejudiced, I admit it…I favor fintechs with relevance for SMEs…in that context, here are some of those I met up with at Paris Fintech Forum (25-26 January 2017) , mostly for the first time, who I’m going to try to keep an eye on:

Ibanfirst – following a distinguished career in the business payments space, they are expanding their services to broader SME financial services

France does fintech – Who was to know?

I’m sorry to admit it, but I had never thought of France as a hotbed for fintech activity nor thought leadership…but I’m starting to change my mind after attending the most entertaining Paris Fintech Forum 25-26 January 2017.  The event drew over 1500 participants, as well as over 200 C-suite-level speakers and 130+ fintech booths and demonstrations.  The venue, the Palais Brognart, has to be one of the most splendid locales for running such an enormous enterprise.  It enabled many parallel events to be held without the sorts of distractions t

Access to Credit Improved in Europe But Still Large Numbers of Underserved SMEs

The European Central Bank’s latest semi-annual survey on business financing, released November 30, registered further improvement in the financial situations of Euro Area SMEs and their access to finance. For the fourth consecutive six-month reporting period, Q2/Q3 2016, more SMEs reported bank credit more available and at lower interest rates than reported the opposite. This was in line with quarterly surveys of bank lenders, the ECB noted, confirming a favorable trend in credit supply for Euro Area SMEs.

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