New report out from the World Economic Forum identifies Big Tech, not FinTech, as the greatest disruption threat faced by the Financial Services sector. In "Beyond FinTech: A Pragmatic Assessment of Disruptive Potential in Financial Services" the authors note that the partnership between banks and large technology companies risks becoming one-sided rather than reciprocal, as financial institutions increasingly rely on Big Tech firms for their most strategically sensitive capabilities, but can only offer their ongoing business in return.
Up Next in Blockchain
The Royal Bank of Canada may be interested in putting credit scores on a blockchain. In a recent patent application, RBC outlines a platform that would automatically generate credit ratings using a borrower's historical and predictive data. The system is described as utilizing more data sources than current credit rating systems, and improving the loan process while creating an immutable record.
Royal Bank of Canada Explores Blockchain to Automate Credit Scores
A new report argues that switching to a distributed, blockchain-based infrastructure could bring significant financial benefits to the asset management industry. The report from Calastone, a transaction network for the mutual funds industry, predicts that such a move could slash costs for the global mutual funds market by over $2.5 billion a year.
Mutual Funds Could Save Billions With Blockchain