This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
What blockchain trends from 2016 are worth watching for follow-through in 2017? Here are five blockchain players to keep an eye on as the new year begins.
IBM: Something Old, Something New, Something Blue
It is remarkable that a company that is more than 100 years old (“International Business Machines”) is one of the leading innovators when it comes to the blockchain. But IBM (FD16) began 2016 by introducing its strategy to offer cloud-based products and services for business via blockchain technology. IBM’s “blockchain-as-a-service” strategy incorporates many of the company’s core technology projects including its Watson Internet of Things platform and its development lab, Bluemix Garage – as well as its core IT system for global banks, IBM z System. IBM’s blockchain strategy also includes its participation in the open source, Linux-driven Hyperledger Project (demonstrated at FinDEVr). Just this week, a commodity trading and agribusiness software provider, The Seam, that has “cleared or processed” $7 billion, announced it would be joining IBM’s blockchain consortium.
That said, IBM distinguishes itself from Microsoft’s efforts by being fairly IBM-centric in its offering. Jerry Cuomo, IBM VP of blockchain technology, told CoinDesk: “What we’re doing is we’re picking a specific fabric and a specific point of view. We’re not interested in any fabric,” Cuomo explained, “we’re interested in one that can support business applications. We’re a bit more opinionated on what fabric is needed.”
International Business Machines, indeed.
And when it comes to ascertaining the appetite for blockchain, IBM has done its homework. In a survey of 200 banks, IBM learned that 65% of respondents “plan to have projects in production” in the next three years. Areas of focus include clearing and settlement, wholesale payments, equity and debt issuance, and reference data. Respondents to a different survey of 200 global FIs revealed that 14% planned to deploy commercial blockchain products in 2017.
“The continued growth of the Ripple network represents a major endorsement of our open approach to connecting the world’s bank and their customers,” Ripple co-founder and former CEO Chris Larsen said. Larsen, who will transition to the role of Ripple chairman of the board at the beginning of 2017, added: “Together we are building a modern payments system to enable new economic opportunities and the seamless flow of value around the world.”
R3: Are Blockchain-Curious Banks Stronger Together?
One way to measure the progress of blockchain technology is by keeping track of the comings (and goings) of members of R3, the world’s largest blockchain-based cooperative. Founded in 2014 and with more than 70 of the world’s largest FIs onboard, R3 is designed to conduct research on and promote the use of blockchain technology in financial services. R3’s biggest contribution to date is Corda, an open-source distributed ledger platform that, while maintaining many of the characteristics of blockchain technology, is not – technically speaking – a blockchain.
Unfortunately, many of the headlines R3 made in 2016 involved a handful of founding members – including Morgan Stanley, Santander, and Goldman Sachs – leaving the cooperative. Specific reasons for leaving the group were typically not provided, though each bank made it clear that the decision was not a reflection on their interest in blockchain technology. Many observers have speculated that the timing of the departures was related to issues surrounding R3’s fundraising efforts, as well as concerns about the growth of the cooperative itself (currently at more than 70 members). Speaking to the departures at Disrupt London in December, R3 founder and CEO David Rutter pointed to the difficulty of “meet(ing) everyone’s criteria” in an organization the size of R3. To the fundraising concerns, Rutter affirmed R3’s “very good progress” toward completing a $150 million funding round.
Beyond the Banks: Card Companies, Payments and Blockchain
One interesting place to keep an eye on for blockchain-related developments in 2017 is among non-bank financial players like the card companies. Visa (FD14), for example, unveiled a blockchain based payments platform, Visa B2B Connect, in partnership with Chain (FD15) in 2016. The technology, designed to provide “near real-time transactions” for high value international payments, will undergo testing this year.
Is a Bull Market in Bitcoin a Boon for the Blockchain?
With bitcoin closing 2016 with a return to its highest level in years, it is little surprise the cryptocurrency is finding its way into the hearts and minds of investors seeking uncorrelated assets to diversify their portfolios. In “Bitcoin Investing: Where Wall Street and Silicon Valley Meet,” Chris Burniske and Adam White make the case for bitcoin as an asset class for long-term investors based on the currency’s declining volatility, reward-vs-risk, and lack of correlation with most other markets including gold, U.S. real estate, and U.S. equities since 2011. Whether growing interest in bitcoin ends up contributing to (or at least correlating with) increased interest in the technology that makes the digital currency possible will be one of the big questions of 2017, as well.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Techfoliance featuresDyme, Personetics, and Finn.ai.
Cryptocoins news examinesLendingRobot’s new automated hedge fund.
The CardLinx Associationunveils Microsoft-developed, open source, card-linking software available to public.
Capital One forges strategic partnership with Bill.com and Gusto to develop financial management tools for SMEs.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Fintech Favorites: Token and Fidor Pilot Payments Project; Meet Miss Kaya: Singapore’s First Women-Centered Robo Advisor.
EVRYInks Five-Year Core Banking Agreement with Fana Sparebank.
Around the web
Alfa Bank and S7 Airlines test service payment transaction processing using blockchain-based smart contracts.
WalesOnline recognizesWealthify in its feature on Welsh firms “likely to have a very good 2017.” Join Wealthify in London for FinovateEurope in February.
The Wild Wong looks at money saving strategies with Qapital.
PwC and Supply Chain Finance Community launch SCF Barometer to better understand the development of supply chain finance industries.
FinTecSystemsopens office in Spain. See FinTecSystems at FinovateEurope in London in February.
North Dakota State University usingPassport for campus parking.
Nerd Wallet namesWealthfront and Betterment best overall robo advisors.
India-based Axis Bank to useRipple’s network for cross-border transactions.
NopSecnamed finalist in 13th Annual Info Security PG’s 2017 Global Excellence Awards.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
FlashFX to leverageRipple for its new foreign-exchange payments-solution in Australia, using XRP for liquidity.
Blackhawk Networklaunches HawkCommerce.com B2B and B2C solution for expanding, distributing and managing gift cards and egifts.
Philippe Gélis, Kantox CEO and cofounder, and Alexandre Gaillard, InvestGlass CEO and founder, are listed among 10 French Influencers who “rock the global fintech scene.”
Luxoftnamed a Top 15 Outsourcing Service Provider by ISG.
Prosper to launch seventh generation of credit model, switches from Experian to TransUnion.
InCommpartners with Wakefern Food Corp. to expand gift card programs.
This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.
Seattle-Based FinagraphCompletes $5 Million Financing.
Around the web
TSYSinks agreement to process debit transactions for Virgin Money’s U.K. customers.
Marcus by Goldman Sachs deploysInfosysFinacle core banking technology.
FIS to offer Early Warning’s Zelle Network P2P service as part of real-time payments package.
Corezoidachieves Amazon Web Services (AWS) Financial Services Competency status.
Cachet Financial Solutionsrolls out prepaid mobile-money-platform upgrade.
Tradeshiftlaunches two new joint ventures in China to meet demand for supply-chain digitalization.
CorteralaunchesCortera Decisions, a new automated scorecard platform.
Tauliato power supply-chain finance solution for Exostar.
CHROME FCU tapsNYMBUS for SmartCore digital banking.
Ripplehires former CME Group executive Miguel Vias as head of XRP (extended resource planning) markets.
This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.
P2BinvestorScoops Up More Than $7 Million in New Funding.
Ahead of Anticipated IPO, ayondo Acquires TradeHero.
Around the web
IBMintroduces blockchain-based KYC project with Singapore’s KYCK!
Cardlyticsadds Peter Gleason as president of international operations.
Jordan Ahli Bank goes live with T24 core banking system from Temenos.
Let’s Talk Payments featuresRipple and Plaid in roundup of “startups to support your startup.”
Ben Brandt of Retirement Starts Today Radio interviewsProActive Budget.
ProfitStarsannounces RemitPlus Express, a remittance solution.
InCommcollaborates with CVV+ to reduce payment card fraud.
Student Loan Geniuspowers student-loan benefits for employees of Pinterest, Twilio and Spredfast.
Prospernames Chief Executive Officer David Kimball.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
PwCunveilsVulcan Digital Asset Services, a suite of digital currency solutions including digital wallets and international payment processing.
Entersektto power mobile app security for FirstBank.
CoverHoundpartners with Metromile to offer more coverage options for auto and property insurance.
WealthForgeexceeds $250M in transactions completed on platform.
Kabbagehires chief technology officer and chief data officer.
AutoGravityto power digital car sales and finance app for Fletcher Jones Motorcars.
Visa Developer Challenge winner Corezoidearns recognition at Money 20/20 Hackathon.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Riyaz Ladiwala joinsHeckyl as CEO for India operations.
Guardian AnalyticsintroducesGuardian Analytics Sentinel Treasury Management for fraud protection.
Linkable Networkslaunches platform enhancements to enable retailers to verify purchases.
Staples to leverageTuition.io for student loan repayment benefit option.
ProActive launches its 2.0 back end.
How Filene and Larky’s Mobile Rewards Pilot Will Promote Stronger Member Loyalty.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Enterprise blockchain solutions provider Ripple has announced a change in command this week. Renowned serial entrepreneur Chris Larsen will transition from CEO to chairman of the board and Brad Garlinghouse will segue from COO to CEO on January 1, 2017.
Garlinghouse (pictured) has served as the company’s president and COO for a year-and-a-half, where he led more than 3.5x growth in customer adoption. Prior to that he worked as CEO of Hightail, where he doubled the company’s revenue. Garlinghouse has also held positions at Yahoo! and AOL. In a press release announcing the change, Garlinghouse notes his plans to pick up where Larsen leaves off, saying, “I look forward to continuing to work with Chris and the board to set the strategic direction of the company.”
What’s next for Larsen? In an interview with PaymentsSource he said, “This has now been 20 years, I’ve got two young boys, I want to make sure I get the right balance on.” He added that “one hundred percent” of his professional time would be focused on Ripple, to help “the team and Brad, making sure we’re seeing everything that’s going on in this incredible space, and focusing on the right things that are going to have the biggest impact.”
Chris Larsen debuts Ripple at FinovateSpring 2013.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.