![]() ![]() To create a new, sustainable financial model in other words.Related: When Did FinTech Become Cool? This is best illustrated by Ant Financial’s Ant Forest, where 500 million people play a philanthropic challenge within a super app that has changed their behaviours to be more eco-friendly and green. We need to use this gift of digital transformation to take technology into finance for the good of society and the good of the planet. The singular focus upon shareholder returns to get our management bonuses led to a morally bankrupt and socially useless banking industry. We have been killing planet earth for a profit and screwing our customers to make a buck. It’s about using technology for the good of society and the good of the planet. It is why they offer loans on a nanosecond basis, provide fund management within a wallet for someone who only has a dollar to save and can get 50 million people to take out health insurance just six weeks fter launching the product.Sixth, but it’s more than that. It is why they have created new ways of thinking about the products and services of finance, placing the technology first and the finance second. It is why they feel they can deal with billions of people making millions of transactions every second. In a digital world, we can deal with changes in a microsecond for anyone and everyone.Fifth, that’s why we’re seeing players like Ant Financial really changing the game because they get open banking and platforms, and are operating on that basis in that model. That’s the only reason we dealt with annuity products because in a physical world, we could only deal with changes on a 12-monthly basis and could only deal with people who were profitable in that structure. We can provide loans for hours and minutes rather than months and years, because the digital model is dynamic and real-time the physical model is inflexible and slow. In a world where we distribute money physically, you cannot afford to deal with someone in a remote African village in a world where distribute money digitally, even the guy sitting in a village near the base camp of Mount Everest can trade and transact.Fourth, because we can reach the unreachable, we can also rethink the product and service. ![]() The financially illiterate, the folks who aren’t worth it, the financially vulnerable, the unbankable, are all getting to be included because that’s what digital does. Nothing may have happened in the last quarter century but something will happen in the next, and only the banks that adapt will survive, as Charles Darwin would say.Third, there is specifically a fourth revolution of humanity occurring where the people who historically could not be reached by banks are now being reached by technology. Now, there are 12,000 start-ups globally getting investments that have been doubling down each year – $111.8 billion last year – and so there is something happening. So, disruption is a yawn.Second, disruption may be a yawn, but the fact is that the internet is changing things slowly but surely, and specifically it began when cloud and APIs allowed start-ups to bootstrap and launch on a shoestring. It hasn’t happened and since the 1990s, most big banks have just got bigger. In the 1990s, all the techie folks said the banks would disappear thanks to the internet. ![]() It kinda goes with disintermediation, and I’ve heard that for decades. So, here goes.First, we need to get rid of the word disruption. ![]() That’s a challenge, as I once turned up at a conference and they said to me “you have seven hours”. They didn’t want to provide a prescriptive approach, and just asked what I talked about in general. I just went through a conversation about my presentation for a forthcoming conference. ![]()
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