Author: Aden Davies

FintechBot Roundup Week 29 – 2013

Let’s start with news of a few ‘oops’ moments from the leading P2P payments company this week. PayPal had a mixed week to say the least. First they managed to accidentally credit PR executive, Chris Reynolds, with the princely sum of $92 Quadrillion, briefly making him the richest man in the world by quite some distance. PayPal also accidentally exposed some rather arbitrary censorship their systems have in place. Italian communications research centre and all round innovation hub, Fabrica, published a book entitled ‘Iranian Living Room’ which is a collection of 15 Iranian photographers work showing life in Iran. The problems began when they realised that orders placed on their site using their PayPal merchant details via Shopify were failing with a non specific error.

I was told that their shopping cart code was blocking the order because the book had the word “Iranian” in the title. And that word is on a “blacklist” (their word, not mine) as PayPal is based in the USA. And that was that. Our PayPal account manager on the phone in Dublin—who was vaguely helpful and evasive in equal measure—said that he could tell by my accent that I was American and I would understand the issue.

In better news for PayPal they announced a very strong set of quarterly results. $1.6 billion in revenue was the headline number but the really interesting thing was that almost half of their total payment volume, $43 billion, was processed via mobile.

Bank of America’s quarterly results also showed an impressive jump in mobile banking usage with an increase of 28% to 13.2 million mobile bankers. Who would have thought this mobile thing would be so big?

Meanwhile in an alternative universe, PayPal founding member and all round mega rich dreamer/doer Elon Musk announced some details of his proposed Hyper Loop, a pneumatic tube system that will fire people at 600mph from San Francisco to Los Angeles in around 30 minutes. He might need that $92 quadrillion mentioned above.

It was not just PayPal that had problems this week. Citi bank managed to expose sensitive data from around 150,000 customers when there was a software glitch that failed to redact the data correctly before publishing it to a legal records system.  No need to worry really as Obama already has the data anyway…

‘We believe ya Obama’

Mobile banking roundup. RBC announced the RBC secure cloud mobile payments service which ‘keeps sensitive client data secure with RBC in the cloud, not on the phone.’ (Stop peeking Obama). US Bank adds Square mobile wallet as an integration option for their customers, nice to see the old world and the new world getting on well.  Ezetap launch a sub $50 mobile POS device in India which handles magstripe and chip and pin and is compatible with ‘virtually every smart and feature phone’. In the absence of anything like a meaningful NFC payments ecosystem, addon services such as stickers are still prevalent, Netbanker takes a look at these ‘trojan horses’. Uber hyped payments startup Clinkle opened its doors to a few more colleges.

 

Banking bloggers roundup. Three interesting pieces from three of the smartest voices on the future of banking. Yann Ranchere of Anthemis Group looked at he acquisition and payment processing costs for those hot payment startups. Brett ‘Bank 3.0’ King wrote about how banking is witnessing the fastest ever shift in the form of mobile. Bradley Leimer of Mechanics Bank wonders what inspires financial services innovation. Finally, some character called Aden Davies wrote about the opening up of financial transaction data in a post he called ‘Six Little Fields; Why don’t banks set them free?

 

Security news. The next iPhone is strongly rumoured to have touchscreen biometrics built in (I am doubtful). This article from MIT looks at just how touchscreen fingerprint ID works.

Half of all critical financial exchanges have encountered some form of cyber attack in the past year.  This fact probably explains why there is a cyber attack test being carried out by over 50 banks. The project entitled rather sexily ‘Quantum Dawn 2’ will also be observed by several government agencies and I presume Matthew Broderick.

 

 

BIG DATA.  A survey finds the the state of Big Data is subpar in banks. Apparently ‘only 30% of financial services companies reported that they have staff with the right analytics skills’ and in very related news the bank I work for, HSBC, is advertising for sexy data scientists.

In Open Data news that I think is real big data news, the Open Data Institute in the UK released a detailed report and interactive visualisation showing the state of the UK P2P loans market. The data comes from Zopa, RateSetter and Funding Circle and represents the first sets of certified open data from financial institutions. Will the big banks follow suit? I hope so.

p2p Viz

 

A big old bundle of random fintech stories loosely coupled. Only one BitCoin story this week. A BitCoin based startup has been acquired, a first. Gambling site Satoshi Dice has been purchased by an anonymous buyer for $11.5 million.

My favourite digital banking startup, Simple, celebrated their first birthday i.e. one year open to customers, with a nice blog post talking about the history of the firm and realesing some numbers on their progress. They currently have around 40,000 customers, are doing over $1 billion dollars in transactions per year and their customers are saving towards goals worth over $100 million. Good luck to all concerned for year two.

An interesting interview with senior director of Poland’s MBank, Michal Panowicz. He speaks openly about just how bad their front end systems were before they embarked on a serious redesign that sees them now at the forefront of what a bank should look like in 2013.

‘(our front end) was like Internet of Yahoo directory in 1995 where you just have text links’

An ex-McDonalds employee is suing the global burger flippers for paying her with a high fee charging prepaid debit card from Chase.

Bloomberg Business Week looked into an important topic...they analysed the actual wealth of various rappers and compared it the boasting in some of their records. It does not make for pretty reading / viewing for some of the bling obsessed big mouths.

Rappers Wealth

Jay Z calls them out

 

And that is your lot. Enjoy your week and remember no one likes a multimillionaire braggart. Follow @fintechBot on Twitter to keep up to date with all things Fintech.

Friday Reading #28

The hot weather in the UK has been a delight, the rare feel of warmth is showing off our best and least pasty side…although there are a few lobsters about (there is even mention of lobsters in one of the articles posted below).  As well as being joyous weather wise, this week has also been good for interesting things I have read on the Internet. Topics covered this week are a real mixed bunch, Do things that don’t scale, design fiction pedagogy, unhappiness is good, and so is shyness, why we should all have something to hide, interviews with Vint Cerf and Marshall McLuhan, Cricket technology and the theory that all the Pixar films take place in the same universe. Get yourself an ice lolly and enjoy.

 

Do things that don’t scale

Startups building things for other startups have a big pool of potential users in the other companies we’ve funded, and none took better advantage of it than Stripe. At YC we use the term “Collison installation” for the technique they invented. More diffident founders ask “Will you try our beta?” and if the answer is yes, they say “Great, we’ll send you a link.” But the Collison brothers weren’t going to wait. When anyone agreed to try Stripe they’d say “Right then, give me your laptop” and set them up on the spot.

 

Design Fiction as Pedagogic Practice

What first seems like a good idea, can have unexpected, unintended and undesirable consequences. Use fiction as a way to think through a full range of possible consequences. The interesting (and often dangerous) impacts of objects happen on the outskirts of intention, like a ripple effect on reality. Pretend before you mess the world up.

 

A Case for the Pursuit of Unhappiness

Forgas’ idea is that a happy mood inclines you to feel that the world accords with your beliefs and emotions. Conversely, he argues, unhappiness inclines you to think that the world doesn’t match your inner state—so you’d better adjust. Accordingly, a happy mood inclines people to pay less attention to detail, rely more on stereotypes, give credence to what they’re told and even to argue less effectively.

 

The crystalline wall

Shyness is something different: a longing for connection with other people which is foiled by fear and awkwardness. The danger in simply accepting it, as Cain urges us to do with introversion, is that shyness can easily turn into a self-fulfilling persona — the pose becomes part of you, like a mask that melds with your face.

 

We Should All Have Something To Hide

Over the past year, there have been a number of headline-grabbing legal changes in the US, such as the legalization of marijuana in CO and WA, as well as the legalization of same-sex marriage in a growing number of US states. […] What’s often overlooked, however, is that these legal victories would probably not have been possible without the ability to break the law.

 

Internet pioneer Vint Cerf talks online privacy, Google Glass and the future of libraries

“I just moved to London and I’ve already been accepted by Barclaycard. And you know that reader they send you (a personal device required to log into your Internet banking account), I was thinking ‘what’s that?’. Now I understand that this is two-factor authentication right there, and I’m damned impressed. And I’m also impressed that people are actually using it, because it’s slightly annoying having to carry one around with you.”

 

The lost Marshall McLuhan tapes

Newman: What’s ahead? What is the most surprising trend we can expect?

McLuhan: The biggest job in the world will be espionage. Around the world, people are spending more and more of their time watching the other guy. Espionage at the speed of light will become the biggest business in the world. But the CIA and the FBI are really old hat using old hardware by comparison to what’s coming, in which everybody earns pocket money by watching his own mom and dad or his brothers and sisters.

 

Test Match Special and Technological Agency

A number of different approaches, one based on Hawk-Eye, another using chips implanted in footballs, are currently under trial. However, Blatter has long opposed these, based partly on their accuracy, but also going on the record to say that “Other sports regularly change the laws of the game to react to the new technology. … We don’t do it and this makes the fascination and the popularity of football”. What underlies this statement is a fundamental belief that sport is a human undertaking, with all the confusion, fallibility and debate that that involves.

 

The Pixar Theory

Every Pixar movie is connected. I explain how, and possibly why. Several months ago, I watched a fun-filled video on Cracked.com that introduced the idea (at least to me) that all of the Pixar movies actually exist within the same universe. Since then, I’ve obsessed over this concept, working to complete what I call “The Pixar Theory,” a working narrative that ties all of the Pixar movies into one cohesive timeline with a main theme. This theory covers every Pixar production since Toy Story. 

 

Another week done, enjoy the sun, fingers crossed for England to win the second test and tell your email obsessed friends to subscribe and your cooler RSS using friends to add this feed. Bye.

Six little fields; Why don’t banks set them free?

I wonder what would happen if every financial service organisation in the world was required to make just six little fields of data available to customers in an automated and open standard automated feed that they could use how and where they see fit. The Six Little Fields, The key day to day transactional data of all the products mentioned above and so many more, are;

  • Time
  • Date
  • Transaction Type (Visa, ATM withdrawal, Direct Debit etc)
  • Transaction Description
  • Transaction Value
  • Balance of the account

There are many more fields underlying this data but these are the key display fields. To allow banking to become a greater part of the web and for this data to become the basis of a thriving ecosystem we need solutions to the following three (at least) problems;

  • An open standard format for transaction data
  • A method of securely linking other financial institutions or 3rd party services to financial institutions so data can be transferred between them automatically
  • A subscribe model for the data that allows new items to be pushed out. Similar to RSS.

I have a handful of ideas and theories on why and how to make this happen and I wanted to share my thinking in the hope that someone out there will agree and have some better ideas along with the will to try to make it happen.

 

Why do I believe the six little fields are so important?

I assume that most people who own financial services products, be they current accounts, credit cards, loans, savings, insurance etc. do not have them all from the same organisation. Even though I work for a bank, and I should probably whisper this, I do not have all my products with that organisation. This is of course the benefit of a free market, competition and choice, which is a fantastic thing. The big issue from my point of view is what is known in the banking industry as single customer view i.e. the ability to see your full financial picture in one nice shiny interface. This is not a new problem in the industry it is also something I have written about before, but it is one that seems far from being solved or even on any of the banks to do list.

This is one of the ideas I am burdened with and I find myself coming back to it time and again.  I think what I want to see is more web thinking applied to banking. There is a lovely quote from Ben Milne of Dwolla that sums this up nicely.

“Payment networks should have a memory. You absolutely should be able to login to Visa.com and see every transaction you have ever engaged in with a Visa card. The fact that you can’t do this is ridiculous.”

I love this quote. Those with knowledge of banking will scoff and say this is ridiculous as Visa cards are issued by a multitude of organisations and the identity of the user is not tied back. Fine, but what if…

Not only should you be able to go to financial institutions you have history with but you should also be able to build your own data stores. These six little fields would be the basis of an entire ecosystem featuring so many things that the banks would never build. This tweet from Dave Birch is a great example of those sort of things but if Dave had a feed of his six little fields he could build it himself, solving his own issue, meeting his own need.

Dave wants to follow his bank account

 This data and mechanisms for access could be used just as much, if not more, by the banks themselves. Today most banks have struggled with building on top of or integrating with the digital banking fortresses they have built. It is why the first generation of mobile banking apps plugged into the ATM network rather than Internet Banking because the routes for data out were easier to implement.

 

How do you get data out of banks today?

The six little fields listed above are the ones shown in your Internet banking interfaces. Underlying those fields there will of course be extra data required such as currency, where money transferred in came from maybe even some location data of an ATM but from a customer’s point of view the six listed above are the ones they most need to see.

Today there are 3 main ways of getting data out of banks.

  1. Manual download of data. This seems to be the prevalent method of getting data out of the banks, certainly in the UK. Download a CSV/OFX/QIF formatted file.
  2. Bespoke feeds. In the US there seems to be a high number of XML feeds in existence to get data out from banks, but they are usually bespoke formats and as such need bespoke decoding. This situation has given rise to 3rd party players such as Yodlee who have put in the hard work to decode all these formats and feeds and then provide a platform to pull them all into. This is laudable but effectively places a commercial company in a very powerful position with regards to data feeds that should be free. Barclays have an automated feed available to their commercial customers in the UK to use with online accountancy service Freeagent.
  3. Scraping the data i.e. giving over your username and password to a 3rd party service and letting their system logon for you and pull the data. Probably against your banks T&Cs and akin to giving your postman your house keys so he can deliver a parcel. Madness. This is known as the password anti-pattern.

The above situation is so fragmented and detrimental to the development of innovative financial services and cannot continue if banking is ever going to get closer to or truly become part of the web.

 

1.       Open Standards are required

The six little fields must be available in an open standard machine readable format, a format that every financial services organisation, and other interested consumers, could implement.

Open standards would challenge the virtual monopoly Yodlee hold and in my opinion would be better for all. Imagine if shipping containers could only fit onto one organisations fleet of ships, that is effectively the situation we are faced with today.

From an open standard point of view there is actually one in existence today. OFX, Open Financial eXchange. It is a golden oldie, first defined way back in the 90s and was primarily designed for the use of desktop money management packages such as Microsoft Money and Intuit’s Quicken. The standard seems to have gotten a bit stale, I know you should not judge a book by its cover but the OFX website is from a long gone era of web design (and they have not updated their copyright statement since 2007). I emailed the OFX group to see if they were actually still alive and it seems they are;

Yes, OFX is still very much alive.  It dominates the U.S. market; over 5,000 financial institutions in the U.S. use OFX. The last specification was in 2006.  There has not been a need for further revisions although there will probably be revision activity in the future as the need arises.

The problem for me with OFX is that it feels like it is trying to be all things to all men (and women). The scope of the specification covers all manner of banking functions and services, including automated delivery of data but it uses old methods and seems heavily XML based. What I believe is needed is something far simpler and based on more modern data delivery formats and protocols such as OAuth and JSON.

 

2.       A manual download option is no good

Forcing the user to manually download their data and then upload into another system is a dark ages solution to today’s realtime always on mobile obsessed world. What I would love to see in banking is the introduction of OAuth or one of its variants. This open protocol is designed to allow the sharing of data and identity between web based services. If you have ever connected a 3rd party application to Twitter or Facebook then you have used OAuth. It solves the password anti pattern described above and also removes the need to manually download data.

 

Twitter OAUTH apps

 

This is what connected apps look like on Twitter. Imagine if there was a list of banks here instead? Why can’t I connect my data in this exact same way? If I could then Dave Birch could follow his account on Twitter with a few clicks or taps.

 

3.       Push updates out automatically

Once the connection problem is solved then whenever a new data item i.e. transaction appears that information can be pushed out to wherever the customer has it connected. They are seeing near realtime data in the interfaces of their choosing (obviously how and when the bank posts the transaction data dictates how realtime it is, we know banks love a bit of overnight batch processing).

This source of data becomes a fantastic ingredient for building new things, these events i.e. new transactions, can then have all manner of rules applied to them. It could power IFTTT for banks. Imagine being able to set off other processes automatically as soon as key payments arrive in your account?

 

Conclusion

If the banking network is truly to become part of the web then the data needs to flow between them as easily and safely as possible. Today that is not really the case in most countries. The digital fortresses banks have built to keep the baddies out are now also keeping their own developers out and are hampering their efforts to build for the brave new digital world. It is in the banks interest to set this data free rather than hoard it for themselves because one day they might understand Big Data. Grasp Open Data first and learn from what people build with that data. I believe Six Little Fields can change the financial services market and how it interacts with and is perceived by the web.

This is part one of my thoughts around six little fields. In the second part I will look at the security concerns of both banks and users, how this might become a reality and whether or not the Germans have actually figured this out already. If you have any questions or comments please do leave them below or pester me on Twitter. I just want to get a conversation started around this topic really, is it a completely ridiculous idea or does it have legs?

FintechBot Roundup Week 28 – 2013

One thing that I would like to see more of in the Fintech world, especially the newer players, is a greater level of integration between companies. I wrote about the lack of it in the PFM space a while back. This week I was very pleased to read about the integration of Braintree acquisition Venmo Touch and its slick one touch payments technology with online neobank favourite of mine, Simple. Simple are also integrating with Dropbox to allow customers to attach documents to purchases. Much more of this kind of thing please all you cool Fintech startups. Simple also published a nice blog post on their security tech, I am a sucker for a look behind the scenes of banking.

Talking of cool Fintech startps, Standard Treasury sounds like a dull US bank but it is actually an interesting startup, backed by the YCombinator folk. It is effectively an API layer for commercial banks. The founder had this to say;

“The existing model for bank-enterprise relationships hasn’t changed since the 1970s,” Kimerling said. “Banking is really painful. We have customers that ask — why can’t banking be like Stripe or Braintree?”

Apple will sell the new Square stand directly from Apple Stores. The photo of the device tells you all you need to know, slick design for markets that have not heard of EMV. 

Just a hat trick of Bitcoin stories this week. German bank Fidor will offer Bitcoin accounts, Those that know Fidor will not be surprised as they already deal with multiple currencies including World of Warcraft gold.

Interesting read on Bitcoin and whether governments and banks could kill it.

Finally, Bitcoin could soon be in the hands of one third of Kenyans as it will become integrated into the wildly successful M-Pesa mobile money platform.

Countries and continents without traditional banking infrastructure continue to be fascinating areas of growth for new forms of ‘banking’. The telcos know this is a great opportunity for them. Orange have announced a new mobile money transfer service aimed at cross border transfers between Mali, Senegal and Cote d’Ivoire.

The front cover of last weeks Bloomberg Business Week is a stonker…

Mastercard published an interesting set of survey results on some of the most niche and valuable user of banking technology, corporate treasurers. They have very complex needs and are becoming more demanding in their technology needs just like every other segment.

The Fintech Innovation Lab held an event in NYC last week. It gave an overview of the progress of the current crop of companies on the program. One company that caught my eye are Narrative Science who aim to turn data in English. The Fintech market in the US is certainly growing, a study published last week showed it is on course for $2.5 billion of investment this year. Momentum.

Third study of the week looks at Australian attitudes to Big Data, with 88% of respondents being comfortable with banks doing transaction analysis for security reasons. This leads me on seamlessly to the scariest security themed banking ‘advert’ of the week. Terrifying and also lacking in key details on how the data actually gets stolen.

 

Another great behind the scenes of banking tech, this time in the form of an interview with Greg Brockman from Stripe. He gives an insight into how they build and how they have struggled with scaling up to 40 staff…most banks have that many developers building banner adverts 😉

Irrespective of how much I whine about banking events I do enjoy them really. I am certainly intrigued by the fact that Commonwealth Bank in Australia are running on at the end of the month called Wired For Wonder. It features some big names of tech, Jaron Lanier, Aleks Krotoski and Kevin Kelley to name a few. If anyone wants to fly me over to attend I am more than happy to make that effort.

History. An interview with Ron Klein the creator of the magnetic stripe we all know and love, especially in the US where they seem very attached to it. Not only did Ron invent the magstripe he also came up with a ‘nutrition system’ to raise chickens more efficiently.

Crap Infographic of the week. This visual turd floated across my tweetstream last week in the form of a promoted tweet by KPMG. Look at it in wonder and try and derive any meaning other than KPMG have much more money than taste.

crap KPMG inforgraphic

 

Italian bank ChiantiBank have decided that making their branches look like restaurants is the way to make them more relevant and appealing. This quote from the press release sums it up perfectly;

The first revolutionary bank branch design is coming: a project aimed to upset the relations by blending the local heritage and the strongest customer service innovation of ever.

From restaurants we move on to pubs, How about NFC capable beer barrels that allow you to pay and pour?

And finally this week a detailed look into one of the greatest financial scandals of modern times, When Eddie Murphy and Dan Aykroyd took the Duke Brothers to the cleaners in Trading Places. Just how realistic was that? Planet Money looks at it in detail.

That is all for another week. Follow FintechBot on Twitter for all this news and much more.

Friday Reading #27

A sunny and busy week. Coincidentally I had a fewer links to choose from which shows what impact nice weather can have on my usage of the web. No real theme or big topics this week, although there are two stories with connections to drugs which might have some meaning.

 

You Are Not an Artisan

People substitute creative for sexy in describing their aspirations (to themselves and others) because it sounds less narcissistic. If you seek sexy work, you could be viewed as self-absorbed, entitled and attention/status seeking. If you pretend it is creative work, you’re suddenly God’s gift to the world, basking in the gratitude, admiration and adoration of all simply for existing.

 

Heat Death, Crap Systems, How Connected Studio Will Save the BBC

Money and ideas went in one end; those of us unconnected with the innards of the black box hung around and eventually watched or listened to what came out the other end: a naked production of Shakespeare, the Six O’Clock News, a documentary about Hitler’s Killer Sharks, an exhibition of Rutger Hauer’s artwork. No doubt what went on inside the box was complex. But the processes were invisible and the box was not connected to the outside world.

 

When To Give Up

A simple measure to know if you need to kill something, is to be aware of how you’re feeling when you’re talking about the thing you’re working on. In giving the latest in a long line of elevator pitch summaries to a stranger, how are you feeling? When you’re talking to friends, are you excited about other things, and when asked about how it’s going with your main thing, do you deflate, feel flat, change the subject? How’s your body language when you’re talking about it?

 

The #indieweb as a minimum viable social web ecosystem

Although there have been significant advances in the field over the last five years, there remains a need to prove the business value of decentralized web technologies. To many of us involved in both the industry and the movement, this seems silly: after all, the business value of other decentralized technologies, like email and the phone system, are hardly questioned. Nonetheless, in a world where centralized data siloes regularly receive multi-billion-dollar valuations, the onus is on those of us who are building more open technologies to demonstrate their worth. Note, it is not enough to argue their worth: we must build, ship, and actively demonstrate a profitable product or service with a business model where the decentralized social web is an inextricable component.

 

Why I’m hiring graduates with thirds this year

So my game theoretic instincts suggest that if we confine our recruitment efforts to people in the lower half of the degree ladder we shall have an exclusive appeal to a large body of people no less valuable than anyone else. And such people will be far more loyal hires, since we won’t be competing for their attention with deep-pocketed pimps in investment banking.

 

Can a Low Dose Go a Long Way?

He’s been in the trenches of legitimate mind-altering research for over four decades, and with time has become a sort of champion of the micro dose. Nowadays, he’s tickled to find himself almost sober, if you could call it that, among the brain-blasted, self-important new gurus and high priests of what could be called a psychedelic renaissnace. Speaking at the 2013 Psychedelic Science conference in San Francisco, Fadiman did not mince words: “It’s wonderful to be conservative in this crowd.”

 

Have a nice sunny weekend (assuming you are in the summer half of the world). Subscribe to these reads via email here or via RSS here

FintechBot Roundup Week 27 – 2013

I am conscious that the first couple of these roundups were heavily dominated by Bitcoin news. I am keen that it is not always the case but there are many exciting things happening in the cryptocurrency world and they seem a bit more interesting than boring old banking. First up this week from the libertarians lira was news that the Winklevoss Twins, they of the Facebook everlasting court case fame, were going to start some sort of Bitcoin based ETF. It baffled and amused in equal measure with the techbubbleosphere going into overdrive. I liked these comments from both sides in the LA Times.

It was a more positive news week for Bitcoin after its recent hammerings. Mt. Gox began cash withdrawals in US dollars again. The Bitcoin Foundation responded to California’s cease and desist, basically saying they are not money transmitters and even if they were thy don’t have any business operations in California, so there. The man who tried to extort $1 million from Mitt Romney has been caught and charged.

 

In privacy news there was a happy announcement from serial leakers and Ecuadorian squatters, Wikileaks. They claimed Mastercard have broken ranks and started allowing donations to flow again to the Assange clan. In slightly darker news for privacy it seems Visa and Mastercard have blocked payments to anonymising VPN providers in Sweden. Opening the door for more usage of Bitcoins I suspect.

 

There were a couple of interesting fintech conferences in London last week. On Monday there was the quite expensive Wired Money, which had a pretty good line up of fintech speakers. There is a highlight reel here and links to news from the conference here. Videos should be released over the coming weeks. On Tuesday it was Bitcoin London, which attracted Bitcoin evangelists and entrepreneurs from all over the globe. It also caught the eye of our national broadcaster…momentum. A couple of weeks ago I attended the Anthemis Innovation Playground and the keynote videos are now online. All worth a watch. Deanna Oppenheimer, JP Rangaswami and Carlota Perez.

 

Unbanked news. Not a fan of the term unbanked I would prefer something like ‘opting out of the old way’ or ‘Too poor for most banks to care’ although both are not as snappy. Anyway, a couple of stories from The States on Pre Paid cards which are fast becoming the replacement for current account for a growing market segment. Mango Financial in Texas are an interesting example of these new financial providers. Not all good news though in the Pre Paid market as there is a backlash against large companies paying people using these cards as there are often hidden fees therefore making the poor even poorer. There must be a better way. Yet another niche for Bitcoin to have a play with?

 

Spanish communications giant Telefónica announced a couple of interesting payments related news this week. First they announced a partnership with Sony to allow their customers to purchase content and charge it to their mobile bill. They have also joined up with mobile banking specialists Monitise to ‘become the preferred Mobile Money technology partner for Telefónica Digital to develop and manage new and existing mobile payment and commerce services for its customers’

 

Banknote news. There is a campaign to get Ada Lovelace featured on the new £5 note in the UK. It was recently announced that Winston Churchill would replace the only women featured on an English banknote, Elizabeth Fry, in 2015. Not everyone is happy about that decision.  There is a bit of background to the Ada Lovelace campaign here. There petition to  sign here. Also, why not have a look at a picture of some ladies holding up bank notes featuring ladies.

 

Banks teaming up news.  I love it when banks get together to try and do something to the benefit of the industry. It does not happen often enough in my short sighted and massively biased opinion. The 22 members of The Clearing House (TCH) in the United States are ‘developing a pilot programme to test an open standard system that improves security for mobile transactions.‘ I wonder how open that standard really will be? Members of TCH only? Either way an interesting move.

In Poland, six of their top banks have ‘have teamed up to create a payment system using mobile phones which they believe could grow to rival credit cards and serve as a model for the rest of Europe.‘ Hey Visa and Mastercard, screw you (imagine that in Polish).

 

Some quickies….

UK P2P lender Zopa has announced that they are to start providing P2P business loans, starting with Sole Traders. They neglect to mention exactly when though.

What to make and your own trading algorithms and test them against a load of open data in the cloud before setting them free? Well, you can.

Web payments darling, Braintree, announced it is now doing around $10 Billion annually in payments. Their recent tie up with Minecraft developer Mojang probably helped. Good to see new kids in the payments world doing well.

The Argentinian Psuedo Currency, Cedin, looks like it is being used for bad things. Who would have thought building a currency based on hidden and undeclared US dollars would have side effects?

 

Social Media has the opportunity to humanise large organisations. actually talking to people in the spaces they like to converse in should be brilliant. For Banks it has been a tough space to do well. An industry that has spent a lot of time on money on reducing human interaction to its bare minimum has struggled with this reversal a little. This recent example from Bank of America shows what happens when your dehumanised process for trying to do social at scale goes awry in public.

 

And the most entertaining and only ever so slightly related to banking story I saw last week was this one about a smart man in New York who realised the new bike scheme sponsored by Citi bank has a useful flaw. When the bikes are parked the front wheel still spins, so he started a spinning class for the homeless. Brilliant.

 

That’s it for another week. If you want this news and more first, then follow my little FintechBot on Twitter.

Friday Reading #26

I have recently read Bill Moggridge’s wonderful book, Designing Interactions. It looks at a number of key points in the lifecycle of technology as we know it today and the people and processes involved in making it a reality. Chapter one of that book is dedicated to the desktop interface we know and love today and the interaction device that made computing more accessible and usable to billions of people, the mouse. The man widely credited with the creation of that device, Doug Engelbart, sadly passed away this week. To say he ‘just’ created the mouse would be to do him a great disservice. His pioneering thinking on the collaborative uses of technology to augment the ability of humans was revolutionary back in the 60s and has still not been realised today. This classic video demo, from 1968, of a multitude of technologies and methods of interaction with computers is still mindblowing, I can’t even imagine what the reaction was 50 years ago let alone the impact it had on computing. There is a quote from Doug at the beginning of this video which resonated with me strongly;

“If in your office you, as an intellectual worker, were supplied with a computer display, backed up by a computer that was alive for you all day and was instantly responsive to every action you had, how much value could you derive from that”

Watch the demo and you will see all kind of wonderous things such as collaborative editing, video conferencing and a method of interacting with computers that along with computers themselves was alien to most. As I sit here writing this on a very flaky work machine which has limited collaborative capabilities I can only hope that in another 50 years time the truly pioneering vision that Mr Engelbart had will have come to fruition in all large enterprises.

The other things that I read and enjoyed this week include a look at where the next innovation hotbeds will be, a look at the rise of African mega cities, Oracle & Salesforce suddenly getting all friendly, what we dreamed of in the kitchen before the microwave, quantified self whoring, technology’s threat to retail, how to get a Klout score of 60 in under 4 weeks and the problem with pilot announcements.

 

The Click Heard Round The World

All of a sudden – wham! – I got an image of myself sitting at a big CRT screen with all kinds of symbols on it, new and different ones, manipulated by a computer that could be operated through various input devices. All the material on the screen could be controlled with great flexibility. Other people had their display units tied to the same computer complex, and you could connect them. Everybody could share knowledge. The vision unfolded rapidly, in about a half hour, and suddenly the potential of interactive, collaborative computing became totally clear.

 

A few words on Doug Engelbart

The problem with saying that Engelbart “invented hypertext”, or “invented video conferencing”, is that you are attempting to make sense of the past using references to the present. “Hypertext” is a word that has a particular meaning for us today. By saying that Engelbart invented hypertext, you ascribe that meaning to Engelbart’s work. Almost any time you interpret the past as “the present, but cruder”, you end up missing the point. But in the case of Engelbart, you miss the point in spectacular fashion.

 

In Innovation Quest, Regions Seek Critical Mass

Unhappily for regions that have spent billions attempting to become the next Silicon Valley, the answers to these questions are still in debate. “Clusters exist—it’s empirically proven,” Yasuyuki Motoyama, a senior scholar at the Kauffman Foundation, told me. “But that doesn’t mean governments can create one.” What’s certain is that they are trying. The largest such effort we know of is the Skolkovo complex outside Moscow, where $2.5 billion is being invested in a university, a technology park, and a foundation. Another, in Waterloo, Ontario, aims at gaining a lead in a particular advanced technology, quantum computing. The price tag there: $650 million so far.

 

How Africa’s New Urban Centers Are Shifting Its Old Colonial Boundaries

For decades, Lagos suffered one of the worst images of any city in the world, known widely as a place of thieving politicians, streets that crackled with danger, rotting infrastructure and “go-slows,” the monstrous, daily traffic jams in which people melt in their seats in the stifling, humid heat while praying they won’t be held up at gunpoint by robbers. The city’s most famous native son, the late musician, Fela, even coined a shorthand term for the Lagos’s litany of hardships: “impossibility-ism.”

 

The week Oracle suddenly became BFFs with everyone in enterprise software

Thankfully both Benioff and Ellison promised it wasn’t the end of the potshots and drama: “I’m sure we’ll try to continue to be entertaining,” Ellison said, “while making sure the entertaining never distracts from working together.” Benioff admitted things had gotten a bit rough between Oracle and Salesforce lately. Maybe they’ll start a reality television show called “Oracle OpenWound.”

 

How We Imagined The Push-Button Kitchen Before Microwaves Existed

In the mid-1950s, the promise of our food future was the push button. The microwave oven was still decades away from becoming a mainstream reality in the American kitchen. But soon — very soon — all your food would be cooked automatically in just a matter of seconds!

Pick your favorite foods! Then this imaginary SUPER CHEF assembles your choice from a vast freezer storage, cooks it to perfection by infra-red ray and serves it by conveyor in a matter of seconds!

Mad Scientist Sees Future Where We Sell Our Quantified Selves on eBay

Wired: So what do you think of Vinod Khosla’s prediction that 80 percent of doctors will be replaced by machines?

De Brouwer: Everything is going to be replaced one day. This debate between carbon and silicon has long been lost. Khosla is right. In telecom, a lot of people were fired in the ’90s. We replaced them with switches. Because, you see, a switch does not make mistakes. The introduction of a human being is an opportunity to make a mistake, so the more little machines you put in your network of course the less you’re going to make mistakes. A machine doesn’t have a hangover.

 

Death of the Salesmen: Technology’s Threat to Retail Jobs

Should we mourn the end of retail? The exodus from American farms marked the end of self-sufficiency and an uprooting of families from their heritage. As manufacturing sputtered, so too did a jobs engine that could carry people with few initial skills into the middle class. It’s harder to get nostalgic about mall jobs and supermarket cashiering.

 

The Future Of UX Design: Tiny, Humanizing Details

These atomic design moments, Saffer argues, are what whole products, and even whole systems and “wicked problems,” ultimately boil down to. If microinteractions are delightful, humane, and effective, then their success accretes and trickles up into the broader user experience in general. “Most good designers have been doing this for decades, especially some of the great industrial designers like the Eameses and Dieter Rams,” Saffer says. “The on/off switch is often the first microinteraction people encounter with a product.”

 

Two weeks and $40 got me a Klout socre of 60

Back in April I had a Twitter conversation with @wildebees about fake social media followers.  I mused whether I could artificially acquire a Klout score of 60 in a month, for less than $50.

 

The pilots announcement problem

When the hotel asks if you’ve had anything from the mini-bar. Grrrrr – there must be a better way of getting that information that doesn’t delay me when I’m trying to leave your hotel. Or better still get rid of the stupid mini-bar…

 

I do hope those links delighted you. If so then why not subscribe via email or subscribe via the increasingly rare RSS feed, for even more witterings from me. Have a wonderful weekend.

FintechBot Roundup Week 26 – 2013

The biggest noise in the fintech echo chamber this week was the launch of Clinkle. A mobile wallet app that aims to get round the infrastructural challenges of POS terminals and wi-fi by communicating with other Clinkle devices via high frequency sound. Details are a bit thin on the ground at the moment though. The app has been built by folk at Stanford University and has raised a whopping $25 million in early investment. I can’t help thinking this company might end up being the Color of the fintech world. It will certainly be very tough for them. The Next Web wrote about the current state of mobile wallets in Europe in what is becoming a very crowded market..

 

Square teased that they were launching in a new market, making me hopeful it was the UK. It was all a ruse however and they actually launched an actual market. Allowing merchants to build an online store, lowering the barrier to entry to online sales for the small merchants that are the typical Square card processing users. Wired speculated that it might integrate well with the new Twitter cards, Intriguing. Not all good news for Square though as one new thing opened, their gift card service closed down.

 

Mobile Point of Sale terminals, the market that Square kickstarted, is hotting up in the UK. John Lewis will soon be selling WorldPay Zinc MPOS terminals for £60. Lloyds have also announced they are working with Monitise on their white label MPOS system.

 

Mastercard launched Simplify, their new set of APIs for making it easy to add payments to apps and web services. Some commentators have noted that is a straight copy of Stripe and that the name is very close to Bank Simple. The scrappy start ups are clearly having an impact on the incumbents.

 

Barclays made some changes to their terms of service that indicate they are to start selling customer data to third parties and track mobile phone location data.  It will be interesting to see customer reaction to that change. In less controversial news they also launch a lovely new feature in their mobile banking app that lets you call them directly from the app and avoid the automated system and get straight through to a human as your are validated. Slick.

 

Vocalink announced a new merchant targeted mobile payment initiative called Zapp, not to be confused with the classic games magazine. Dave Birch pored over the confusing reporting to explain it all.

 

Bitcoin News. Plenty going on again this week in the crypto currency world. The DEA seized Bitcoins from a suspected drug dealer. A man was charged with trying to extort $1 million in Bitcoins from Mitt Romney, This micropayments add on to Bitcoin looks interesting and is another example of the fact we still on’t know what Bitcoin can become. Interesting article on how a newbie to Bitcoin mining made $700 worth of coins very simply. Btcoin vs the regulators, someday soon someone is going to stand up and say no. Finally a good read on Bitcoin as  new technology but a familiar revolution.

 

Some quickies…

Goldman Sachs dropped Lloyd Blankfein pocket change i.e. $100 million, on Big Data firm, Applied Predictive Technologies.

In other Goldman news, details were published on their all night $70,00 per team techy scavenger hunt. Crazy rich people.

Tesco Bank launched a telematics based car insurance product.

New Zealand bank ASB have a little experiment running on Facebook this Wednesday. The LikeLoan interest rate will drop lower the more Facebook likes the product page receives on one day.

Source Code for the Carberp banking malware leaked online meaning we could see some really nasty variants springing up.

 

PR Stunt of the week. PayPal got loads of coverage on their attempts to bring payments technology to space to prepare for the colonisation of other planets. PayPal Galactic want to look into questions such as ‘What will our standard currency look like in a truly cash-free interplanetary society?’. Dave Birch pointed out that this galaxy had been explored before by Travelex in 2007.

In slightly related news a sci fi currency converter is now available so you can work out how much Federation Credits or the Ankh Morpork Dollar are worth in real world currency terms.

 

And finally…The Onion hit the nail on the head yet again when they highlighted how normal people see financial reporting. Markets in turmoil as price of money skyrockets to $90 a dollar.

 

That’s all for this week. If you want this news and more first then follow my little FintechBot on Twitter.

Friday Reading #25

Another working week draws to a close and it has been a pretty good one. I started a little Fintech roundup.  I am however struggling with some other writing at the moment so this Friday Reading has come as a welcome break. On the positive side things are moving along nicely with the War Cards project and next week scanning of them will take place. This is a nice little milestone and then the project can really begin and we can actually make something. I rarely get to make things and I am also not very good at it which is a constant source of disappointment.

To turn that round into joy this weeks roundup begins with an interview with Anne Holiday who has produced some lovely little films about some people that are very good at making. Read and watch. Other things that I liked this week include a great piece on making little ideas out of big ones, old ideas being better than new ones, a couple of articles on fiction as a driver for new ideas, can too much collaboration be detrimental and can spaces be designed to promote the greatest form of collaboration, Sex. Finally there is a wonderful oral history of one of the greatest banking films of all time, Trading Places. To begin we have a lovely letter from Dorothy Parker to her publisher when she was struggling with writers block. I might just send this letter to my boss.

 

I cant look you in the voice

 

The Makers of Things

What do you think the message of the series is, what story were you trying to tell with the films? If anything, it’s that we’re all makers of things. Sounds a bit cliched but the title The Makers of Things just came from something Norman said. He said that even when he was 14 and had a shed in his parents’ garden he made sawdust. I like the idea that whatever your discipline, your chosen material or intention, you can make stuff.

 

The Little, Big Idea

When you’ve got a Big Idea, you’re always thinking about it, and if you focus on just making that first step, you’re maximising on that passion and energy. It’s pointless trying to do a Big Idea when you’re not passionate about it, and the main problem I see with the “write it all down, spend a year getting lots of documents together” model is that your passion isn’t going to be in it. It’s a formula for making sure that you’re tired of it before you’ve even spoken to any users.

 

Old Ideas Are Better Than The Idea You Just Thought Of

Some ideas are stacked up on shelves because, for one reason or another, they’re just bad. Others are set aside because, while they might be good, they’re either really hard to execute or the team isn’t ready to pursue them. Or maybe the timing isn’t right or the person who had the idea doesn’t know how to convince others of its merit. Regardless, once an idea begins to age, it can be difficult to tell whether it has potential. All old ideas are then sullied with the bad-idea funk and people forget how promising those good ideas once were. After a while, it’s hard to tell them apart.

 

An Introduction To Infrastructure Fiction

The first assumption that needs to die: that infrastructure enables designed objects. As the old saying goes, the problem is that it’s not even wrong; it’s just one-sided. The relationship between infrastructure and designed objects is duplex, a synthesis. The multiplication of designed objects, of tools and machines and appliances, both necessitated and enabled the construction of infrastructure, which in turn enabled a further proliferation and multiplication of appliances.

 

Better Made Up:The Mutual Influence of Science Fiction and Innovation

Buzz Aldrin, who really did stand on the moon, recently offered a transporter to Mars to a Radio Four programme asking for donations to an imaginary museum. It was received as the first way to ‘hitch a ride into space’… ‘since science fiction’. Aldrin, who has criticized NASA’s priorities, who seeks a Mars programme, and who has been engaged in work on a Mars Cycler, intended this fictional gift to be a real world intervention. Science Fiction and Science ‘fact’ – science and technology innovation, policy, public knowledge, investment – are not two separate realities but are two entangled and overlapping fields.

 

Too much collaboration is hurting worker productivity

In the last few years, increased collaboration is both intentional, encouraged by managers intent on fostering innovation and shared resources, and unintentional, partly the result of corporate cutbacks in office space during the recession. Much of the reduced space affected collaboration areas, which pushed conversations and collaboration into the general work spaces, said Hoskins. “Everything was squeezed” and so workers felt less able to focus, the Gensler survey of 2,035 knowledge workers shows.

 

Room for sex

The sudden proliferation in the 2000s of National Lottery-funded public spaces in the UK seemed to be rooted in a longing to return to Edwardian times, with all the attendant anxieties about sex and class. This longing was abundantly clear in Foster and Partners’ redevelopment of Trafalgar Square (2003): a magnificent architectural project, but one that limited human behaviour to the polite promenade. Perel’s understanding of the limits of civility, from a sexual point of view, helped me to form a powerful critique of architecture. In sum, architecture was principally about order; sex was not.

 

It’s The 30-Year Anniversary Of The Greatest Wall Street Movie Ever Made: Here’s The Story Behind It

JOHN LANDIS: The script was developed for Gene Wilder and Richard Pryor. And when I was sent the script, Richard Pryor, unfortunately, had his accident where he burnt himself rather badly, and they sent it to me and said, ‘What do you think?’

‘48 Hours’ hadn’t come out yet, but they’d previewed it, and Eddie Murphy had previewed very well, and they thought, ‘Ah this kid’s going to be a star,’ So they said, ‘What do you think about Eddie Murphy playing the Billy Ray Valentine part?’ And I of course said, ‘Who’s Eddie Murphy?’

 

Was that a good bunch of little links? If you enjoyed them then why not subscribe via email if you don’t already or try subscribing to an RSS feed for more posts. Have a brilliant weekend.

Why doesn’t Richard Branson buy Bank Simple?

Random thought of the day. What if Richard Branson, the owner of Virgin Bank (old Northern Rock) bought Portland based neo bank (Bank) Simple? I am intrigued to see how well Simple do now they are out of Beta. I think they currently have around 20,000 customers in the US and are starting to push for more. I selfishly wonder if they would get greater traction faster in the UK? Like the US bands that struggled for an audience in the vastness of the US yet came over here and did a few festivals and are now mega stars (how the hell The Killers managed that I will never know) In the US there are several thousand banks, here we only have about five. Simple could clean up over here in the retail market. Of course I suspect they will do very well in the US I just want a proper digitally minded bank in the UK to shake things up a bit.

Why Branson?

Well he has loads of cash and owns a bank that provides almost all retail banking services (no current accounts just yet but that would be perfect to launch with Simple) yet they seem to be focused on a branch based model. What if they really went for it digitally? Take the fight to those big banks in cyberspace and not on the high street. Come on Richard give it a go. Not sure Josh and Shamir will be up for it but $100 million and a few trips to your private island should sort it. Might be a nightmare integration process with those dusty old back end systems but no pain no gain yeah? Just a thought.