The TechForFin map of Belgium - companies clustered by different sector verticals
By Thomas Depuydt (B-Hive)
A full week of interesting panels and presentations happened earlier this month at Fintech Week London. We were on sight for the insurtech panel, as it’s one of the up and coming innovation verticals.
The current state of the insurance industry was described by the entrepreneurs on stage as…
· Lacking customer centricity
· Intermediaries in the value chain that add huge costs and limited value
· A rise of data to allow better priced, tailored products
Or, in other words…
The perfect storm for disruption
We have been hearing that for a while now, but it’s about time someone actually does something about it. The entrepreneurs in the panel representing companies such as Homelyfe, hiBob and Yu Life are planning to do exactly that. One of the founders said he does not like the word disruption, as it sounds too negative. He claims, “there will be a better experience at a much lower cost” - same same, but different.
A first innovation wave will target distribution channels, cutting out middlemen – a practice stylized by e-commerce. Lower premiums for consumers and more individualized knowledge (data) of the consumers should be the outcome. The second innovation wave is likely to be on the risk and product side, where individualized offerings replace plain vanilla products and in a later phase, “protection-as-a-service” will be replacing existing insurance products altogether. This comprehensive protection will be data-driven and link to actual life events and behavior.
Several startups are jumping on the insurtech bandwagon, but entering the insurance industry is complex, and a deep knowledge of industry dynamics is crucial to succeed.
Disrupting within the existing value chain is a challenging task, as the integration points are often inflexible, due to regulation and legacy IT infrastructure.
The entrepreneurs are strong believers in creating a parallel channel straight to the consumers (i.e., a B2C approach). They link directly to re-insurers, creating direct competition with incumbents. They clearly expect that the pricing of risk will be commoditized in the future.
Is there a place for collaboration with incumbents?
According to the entrepreneurs, insurance companies are faster to react to the digital insurtech threat than their banking counterparts to the fintech wave of companies a couple of years ago. There is a clear willingness to collaborate and learn, although this brings its own challenges:
Incumbent insurance players often…
1. Struggle to identify the right partners to innovate with
2. Do not always have the technical capability to integrate easily
3. Have legal and risk constraints that impede collaboration
An area in which large corporates are surely looking for synergies with digital companies is the SME market segment. Like in banking, this huge market segment is poorly serviced and incumbent insurers are looking for the right digital channels to reach the SMEs. While the business imperative for collaboration with digital channels to service the SME segment is a no-brainer, the legacy architecture makes it a big challenge to make that happen due to e.g., a lack of open architecture/APIs. The move towards the cloud that is slowly taking off in the insurance industry could help alleviate some of these concerns.
There isn’t a single panel discussion in London without a Brexit question these days. The entrepreneurs’ worry seems to be more on the talent side (finding full-stack developers will become even harder if no EU citizens can be recruited) and slightly less on the regulatory side, where regulatory stability is almost more important than the nature of regulation itself. The entrepreneurs kept their cool and approached the topic with pragmatism or, to quote one of the founders, “I am far more worried about hiring my next developer than I am about what Theresa May will or won’t do.”
Are you struggling to identify the right partners with which to innovate?
The banks that start to offer programs for customers over the age of 65 will be at the forefront.
Companies in every industry and geographic location around the globe are well aware that technological innovation is a key strategic topic. Digital transformation disrupts traditional business models, pushing organizations to invest in new technologies, invent new business models and reorganize internal processes.
B-Hive, a European enabler of innovative collaboration for fintech startups and established financial service organizations, announced today that financial institutions AG Insurance, Belfius, BNP Paribas Fortis, Degroof Petercam, Euroclear, KBC and SWIFT are working together on the creation of a blockchain-powered platform to simplify customer on-boarding for individuals and legal entities.
Blockchain is claimed to be the transparent system that will gain back Millennials’ trust in finance. Blockchain is the means to an end, gaining trust has everything to do with giving back control to the consumer. Do banks dare?
B-Hive proudly presents Fabian Vandenreydt as its Executive Chairman during Money 20/20
These past years financial institutions have accepted the existence of fintechs within their industry. This can be proven by looking at a survey PWC conducted in 2016. They observed that 32% of financial institutions are currently engaged in partnerships with fintechs versus 25% who do not deal in any way with fintechs...
The Proximity Shopping & Payment Experience Day was held on the 16th of June in the B-Hive HUB Brussels. During the event innovative startups and scaleups had a chance to pitch to established financial players and relevant consulting companies. The Experience Day had a positive impact fuelling the networking and further partnerships between the participants.
On June 6 and 7, B-Hive had the opportunity to be a part of Level Up Belgium—the leading tech investment event set in the city of Ghent. The presentations included the 50 hottest scale-ups in SAAS, big data, mobile, IOT and e-commerce.
Money laundering and tax evasion are considered to be two of the main crime threats to the EU because they create great damage to the stability and reputation of the financial sector, and even to the economy as a whole. As these types of crime are becoming increasingly complex, sophisticated and dispersed internationally, action on a supranational level is required...
On May 29th, B-Hive organized an exclusive event at the Microsoft Innovation Center in Brussels around martech and the digital customer experience within financial services.
By Marilia Assis (B-Hive)
In 1158 the Bologna University, one of the oldest in the world, signed a document that secures the academic freedom, the authentica habita. This document grants several rights to the academics. One of them is the freedom of travel to study. However, many of our contemporary students need more freedom than that. They are focusing on the outside world rather than classrooms to reach their goals. Based on this observation, we selected some successful stories of students that dropped out of universities and colleges to create companies in the fintech sector.
1 - David Zalik was born in Israel and raised in Alabama, skipped high school and enrolled in Auburn University. Not feeling fulfilled with his studies, he decided to drop-out of university and open a computer assembly company. Years later this entrepreneur becomes the co-founder of GreenSky, offering fast and paperless solutions and financial services to businesses of all sizes. According to Crunchbase his company already raised more than $350 million.
2 - The Irish brothers Patrick and John Collison, founders of Stripe, gained a huge visibility this year after being highlighted by Forbes as being two of the richest people of the planet. The young men are also two of only four self-made billionaires in their 20s. What most people don’t know, is that they had to quit the college to fully commit to their company. Patrick left MIT and John left Harvard. Their risky action was not in vain: Now Stripe is worth
$ 9 billion and is providing a set of unified APIs and online payment tools all over the world.
3 – Alexa Von Tobel is a graduated in psychology and literature. However, in 2009 Alexa Von Tobel dropped out of Harvard business school to open LearnVest, a $350 million empire that is helping people to organize their finances. Furthermore, she published the bestseller “Financially Fearless”. This multitasking professional is also an inspiration for other women tempting to open their own business.
4 - Hany Rashwan is an Egyptian who realized the dream of many of his peers, being accepted in a prestigious American university. Nevertheless, he decided to take an unusual way, dropping out of Columbia University to pursue his dream: Using technology to make the world a more efficient, prosperous and equal place. He was very successful staying true to his intentions. Becoming the founder of Payout.com, he is providing lenders with tools to integrate and streamline payouts.
5- Ryan Breslow was a dedicated and participative Stanford student. He was one of the creators of the Stanford Bitcoin research group. Studying hard, he discovered the limitations of the payments system, which inspired him to make his decision: Dropping out of Stanford and opening his own payment platform. In 2014, together with his fellow student Eric Feldman, he founded Bolt, allowing users to make payments through digital currencies such as bitcoin.
Spanish bank BBVA recently launched its Open Banking Business, which allows third parties to use and integrate BBVA’s financial data for their own purposes. The idea behind open banking is that cooperation is the only way to innovation, and it is one of the core beliefs of Millennials.
Technological evolutions and socio-economic changes are disrupting industry after industry and are about to make their way into the insurance industry. It has been predicted by most leading strategy and consulting firms that 2017 will be marked as the year of the insurance revolution.
B-Hive is here to help you navigate the São Paulo fintech scene. Vamos nessa?
In 2003, Prof. Orlitzky took a granular approach on CSR, he rejected the vision of the neoclassical economists, in which CSR is not consistent with shareholder wealth maximisation. Furthermore, he proved that CSR is likely to pay off.
Banking Tech for Humans
By Frédéric Olivier (B-Hive) and Trendwolves.
Artificial intelligence (AI) will become the primary way banks interact with their customers within the next three years, according to three-quarters of the 600 US bankers surveyed by consultancy Accenture in a recent report.
The hype surrounding AI, blockchain and data intelligence in finance is only going up, fueled by fintech and the big tech companies that are developing AI technology at top speed. AI could be the holy grail, the solution to personalised and instant customer service, the answer to the question of how to survive in a fast-changing world.
Some of the AI examples out there are Capital One’s co-op with Amazon Echo’s Alexa, allowing people to check their accounts and pay credit card bills via the Echo device, and HSBC’s virtual assistant Olivia, who answers questions about credit cards or current accounts.
So far, so good. One would agree that bankers are finally getting the point that tech companies have long since understood: putting the consumer first - designing products and services starting from their interests, behaviour and moods - is the key to success. It’s no coincidence that Millennials trust tech companies more than they do banks. Believe us, youngsters know that tech companies are no holy saints, and that the Googles and Facebooks are not using the knowledge they gather in consumer’s best interests. Even so, they trust banks even less and a big part of the explanation is that the apps and the services banks provide their young consumers, aren’t as user-centered as they should be.
In order to design in a way that truly taps into human behaviour, banks need to start using their data to analyse human behaviour. There are fintech out there that match financial transactions with personality traits through HR, so banks would know how, when and with what products they have to approach that specific consumer.
Introducing AI to fully understand customer’s needs and goals will be a game changer for the banking industry, if banks will put the same amount of effort into designing apps, services, products and communication that fit their consumers’ life, desires and needs.
Our old ancient Chinese Confucius said: Study the past if you would define the future. Based on his quote we present you the following infographic, providing an overview of the history of financial technology. Now, let's build the future!