Entrepreneurs and technology
challenging the Banks?
”Bitcoin has made me interested in issues
like finance and money – things that I never
thought about before. Now I am really
curious and questioning why things are the
way they are in the finance world….and
wondering what can I do to change them.”
- Bitcoin 2014 Conference Attendee
In just a few years in Sweden alone…
Company Founded Business
Klarna 2005 E-commerce payment services
MyLoan 2006 Loan broker
Trustly 2008 Online payments
TrustBuddy 2009 P2P lending
FundedByMe 2011 Crowdfunding, crowd equity
Tink 2012 Personal finance
Safello 2013 Cryptocurrency exchange
KnC Miner 2013 Cryptocurrency mining equipment
?? 2014 ?
Share of wallet is rapidly shrinking
Increasing competition for
investors through crowdfunding
Millions of dollars 2015e
USD 17 bln
And in the US and UK…
•>USD 3.8 bln in personal
loans since 2007
• USD 750 mln growth each
•Now offering business loans
•Strategic alliance with Union
• “Net generation”
• 24x7 “mobile” workforce
• Knowledge via MOOCs
• Mobile hardware
• P2P lending/microfinance
E.g., Central Bank
~ Long-standing financial
institutions and regulations
E.g., Bitcoin Community
~ Emergent collective of users across
globe connected through internet
Challenges to institutions?
Teigland, Yetis, Larsson, 2013
In just five short years… Bitcoin
•Open source project in Jan 2009 by “Satoshi Nakamoto”
•Developed by self-organizing community of 1000s strangers
•Approx USD 8.4 bln in circulation (June 2014) and 70,000
•SEK 55 bln of Bitcoin vs Swedish Crown of 91 bln SEK
Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707
Cryptocurrencies reshape global finances
Founder(s) Active Website PoW PoS
Bitcoin BTC or XBT 2009
Yes N/A Yes No
Ripple XRP 2013
Chris Larsen & Jed
Yes ripple.com No No
Litecoin LTC 2011 Charles Lee Yes litecoin.org Yes No
Peercoin PPC 2012
Yes peercoin.net Yes Yes
Dogecoin DOGE 2013
& Billy Markus
Namecoin NMC 2011 N/A Yes dot-bit.org Yes No
Mastercoin MSC 2013 J. R. Willett Yes
Primecoin XPM 2013
Bitcoin – so much more than a “coin”
From dumb to smart money
Underlying Bitcoin protocol holds real
Transfer property rights (e.g., shares,
certificates, digital money) fast,
transparent and very securely.
Remember.. you can’t control networks
If you try to stop this, something else will
rise and take its place? What will this be?
What does the future hold?
• Will we see a parallel to other industries,
e.g., music, software, newspaper, books?
• Will “trusted” third parties no longer be
needed since trust can be mediated through
networks, which are self-regulating?
• What basic assumptions will no longer hold,
e.g., do we need money?
"...when the rate of change
outside an organization is greater
than the rate of change inside,
the end is near...."
- Jack Welch
•How to learn about new developments such as
crowdfunding, P2P lending, cryptocurrencies, mobile
•How best to engage and with which developments?
•How to turn threat into opportunity?
•How to let go of control…..
Photo: Lindholm, Metro
If you love knowledge, set it free…
“We ain’t seen nothin’ yet….”