Disruptive Innovation In Banking 'Disruptive Innovation' describes a process by which a product or service takes root initially at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. While there is little to indicate that banking might be an exception to the rule, there’s still enough time for bank and credit union executives to read, understand, and act on the handwriting on the wall. Rick Mueller, manages the Disruptive Innovation Group on LinkedIn While there is an ongoing debate over the definition of ‘disruption‘ and ‘innovation‘ in various banking circles as well as debate over Clay Christensen’s Theory of Disruptive Innovation by Jill Lepore in The New Yorker, there is no debate there is significant change occurring in the banking industry.
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A flexible payments API for platforms — WePay Control over your user experience without any fraud burdens Control Your User Experience We keep users on your website throughout the whole payment experience - it’s seamless from beginning to end. Sign your users up for payments automatically. How Will Banks Respond if Apple Becomes Mobile Payments Player According to several reports, Apple is gearing up to roll out a new payments system for physical goods and services beyond the walls of it’s Apple stores. If true, Apple would leverage the iTunes payments system, credit card data already on file for more than a half million consumers, and recent patents to become a big player overnight. How will banks or credit unions respond? By Jim Marous A report claims that Apple’s senior vice president of Internet Software and Services, Eddy Cue, “has met with industry executives to discuss Apple’s interest in handling payments for physical goods and services on its devices, according to people familiar with the situation.” The paper also said that online store boss Jennifer Bailey has been re-assigned to a new role where she’s tasked with growing a payment service at Apple.
The unbundling of commercial banks Loans and Financing The small business and commercial loans market is probably the one being disrupted the quickest by technology, with a number of startups emerging to compete with banks in this space, relying on different information to underwrite loans than banks have traditionally used. To better understand this market, I’ve broken it up based on roughly the length of the financing of the startups aim to provide, into three main types: Short term credit (supply chain/working capital)Loans (generally longer term)Funding (investments into businesses) Short-term credit Small businesses (and large ones too) often face short term cashflow problems.
M-Pesa M-Pesa (M for mobile, pesa is Swahili for money) is a mobile-phone based money transfer and microfinancing service, launched in 2007 by Vodafone for Safaricom and Vodacom, the largest mobile network operators in Kenya and Tanzania. It has since expanded to Afghanistan, South Africa, India and in 2014 to Eastern Europe. M-Pesa allows users to deposit, withdraw, transfer money and pay for goods and services (Lipa na M-Pesa) easily with a mobile device. The service allows users to deposit money into an account stored on their cell phones, to send balances using PIN-secured SMS text messages to other users, including sellers of goods and services, and to redeem deposits for regular money. Users are charged a small fee for sending and withdrawing money using the service. M-Pesa is a branchless banking service; M-Pesa customers can deposit and withdraw money from a network of agents that includes airtime resellers and retail outlets acting as banking agents.
Receivables Exchange Receivables Sales The Receivables Exchange offers public and large private Sellers of trade receivables direct access to a broad network of institutional Buyers who purchase auctioned invoices in accordance with a regimented market protocol. box-1Public equity Rated debt, orRevenues in excess of $1 billion box-4As little as 2 days after invoice postingInvoice face value less discount fees box-0Electronic matching of Buyers and SellersEnforcement of market rules and proceduresCentralized cash management and trade clearance box-2Obligors of wide ranging credit qualitiesNo concentration limits
Digital wallet A digital wallet refers to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder's credentials. For example, a digital-wallet could potentially verify the age of the buyer to the store while purchasing alcohol. It is useful to approach the term "digital wallet" not as a singular technology but as three major parts: the system (the electronic infrastructure) and the application (the software that operates on top) and the device (the individual portion).