Uploaded byPelle Braendgaard
Web of Assets
This document discusses the challenges banks pose for financial technology startups and how banks can stay relevant in a changing landscape. It notes that banks often charge high fees and make it difficult for startups to access basic services. New types of digital assets now exist outside the traditional banking system. The document proposes that banks create experimental web-based banks with open APIs, minimal KYC requirements, and no cards to better serve customers and startups. It suggests banks learn from large internet companies and acquire innovative startups to help drive innovation.
Web of Assets
- 1. THE WEB OFASSETS Pelle Braendgaard PicoMoney
- 2. 1. Banks asanti innovators 2. The web of assets 3. How banks can stay relevant
- 3. 1. BANKS ASANTI INNOVATORS
- 4. THE WORLD NEEDS INNOVATION
- 5. INNOVATION STARTS WITH SMALL STARTUPS working on crazy things in strange ways
- 6. My bank wantedto charge me €1500 for developer documentation AUSTRIAN STARTUP FOUNDER 2010
- 7. We can't opena merchant account and European customers don't use PayPal SPANISH STARTUP FOUNDER 2011
- 8. To open amerchant account it was considerably easier for us to found a Delaware LLC and process our payments in the US BERLIN STARTUP FOUNDER 2010
- 9. BANKS PROTECT EXISTING REVENUE STREAMS
- 11. E-MONEY LEGISLATION Large A round required for startups
- 12. NEW VERSION MUCHBETTER Still requires at least a €500k seed round to play
- 13. THE INTERNET ROUTES AROUND OBSTACLES INCLUDING BANKS
- 14.
- 15.
- 16. WHY VIRTUAL CURRENCIES? •0 transaction fees • Prepayment • Cantbe shut down by bank or payment provider • Easy integration
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- 22. 2. THE WEBOF ASSETS
- 23.
- 24. Non web Web commercetoday 3rd party
- 25. Commerce with the webof assets
- 26. Better access to customersown data
- 27. Operate a webof assets on top of banks
- 28.
- 30. 1982 called -they want their messaging standards back
- 31.
- 32. UNIQUE ASSET URLS EUR https://ecb.int/euro DB EURO Accounts https://db.com/de/euro DB CHF Account https://db.com/de/chf T-Mobile prepaid https://t-mobile.de/prepaid http://www.amazon.de/Innovators- Innovators Dilemma book Dilemma-Unternehmen-bahnbrechende- Innovationen Daimler AG https://xetra.de/dai
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- 36. 3. HOW BANKSCAN STAY RELEVANT
- 37.
- 38. JOIN THE INTERNET Don’t wait another 20 years
- 39. EXPERIMENTAL WEB BANK •Simple deposit accounts •Open API’s
- 40. MINIMIZE RISK ANDBARRIERS •Minimal KYC < €1000 balances •Normal KYC < €10k balances •No cards
- 41. 100% WEB INFRASTRUCTURE •Learn from Google, Twitter, Facebook not other banks • Maintain existing systems and services separately • Bring in experienced non bank web team
- 42. SABOTAGE •Strong CEO/Board support •Inside interests will attempt sabotage •Existing IT staff can be dangerous
- 43. STARTUPS INNOVATE FORYOU Acquire interesting ones just like Google, Twitter and FaceBook
- 44.
- 45. ABOUT ME Pelle Braendgaard pelle@picomoney.com @PelleB picomoney.com I blog at stakeventures.com
Editor's Notes
- #2 The world wide web changed almost every aspect of business over the last 20 years. The last place to have been mostly unaffected is the world of banking and finance. Now this is finally changing.\n
- #3 I will specifically talk about business and retail banking. I think investment banks while under attack for many real and imagined reasons already understand many of these things reasonably well.\n
- #4 \n
- #5 Innovation is what causes most real growth. The world needs innovation.\n
- #6 \n
- #7 \n
- #8 \n
- #9 \n
- #10 \n
- #11 Tech executives swear by Clayton Christensen&#x2019;s famous book\nexisting cash cows destroy innovation cycle\nYou are now in the tech industry and need to read and understand this.\n\n
- #12 Original e-money legislation\nFew real startups applied, too expensive\nPayPal, Telcoms\nRumor is banks pushed for strong rules to protect their business\n
- #13 You now see actual startups applying, but most real innovators will still find it hard to play.\n
- #14 \n
- #15 Can&#x2019;t use banks work around them\n
- #16 A prepaid credit system used within a business or platform.\nSell in 7/11, Gas stations, by mobile phone, credit card etc.\n
- #17 \n
- #18 Platform for creating virtual currencies\n
- #19 Person 2 Person credit around the banks\n
- #20 Fund projects using donations instead of equity. \nPressure on SEC to allow small value equity offerings.\n
- #21 Growing in Germany, England, Canada and US.\nCommunity currencies and time banks are going around national currencies.\n
- #22 Still small but growing.\nSemi anonymous, can&#x2019;t be shut down\nKiller feature is zero barrier to entry for developers\n20+ copycats on the way\n
- #23 \n
- #24 Lots of resources distributed on the internet. \nEach with a URL\nRequest / Response\n
- #25 A web shopping cart connects to a payment gateway on the web\nPayment gateway like PayPal sends messages to banks through the dark net\n
- #26 All assets including banks are accessible via the web directly\nNo need for chains of intermediaries\n
- #27 banks, assets, ecommerce sites allow 3rd party applications to aggregate data for consumer\n
- #28 Many startups hate them for freezing funds. \nNecessary risk mitigation due to fundamental insecurities in banks existing messaging models.\n
- #29 The web was built on standards\n
- #30 The banks own standards wont work. They come from the world of \nleased lines and batch jobs. \nFundamentally different technology than the web.\n
- #31 Very simple standard using HTTP (the web protocol) and OAuth for security as used by facebook and twitter.\n\nExperienced web developer only needs this slide to develop with it.\n
- #32 Each asset type has a unique url\n
- #33 EU funded project to create open banking standards. Focus on transparency.\n
- #34 E commerce standard. Offer/Acceptance/Payment\n
- #35 W3C is web standard group\nInitially merging OpenTransact and PaySwarm.\n
- #36 \n
- #37 Old telecoms standards have been replaced by VOIP. \nStill monopolies so not ideal example\n
- #38 I am not talking about a marketing site or online banking. \n\nYour core business should be exposed on the web.\n
- #39 \n
- #40 KYC large barrier to entry \nUse tiered account scheme balancing KYC and max balances\n
- #41 Very different technologies, very different skills\n
- #42 It is vital that this comes from the top\nMy experience says IT staff are worst offenders\nApple II vs Mac, Altavista vs DEC\n
- #43 Let startups deal with Mobile, NFC, Reporting, Shopping cart integration etc.\n
- #44 \n
- #45 \n