Do You Know About Intellectual Property & FinTech?
So you’ve decided to join the modern movement and enter the world of FinTech. Excellent choice, but not one that should be made blindly. Successfully running a business is not like opening a piñata, where you randomly hit the air with a stick until you hit the motherlode: You need to fully understand how the system works and what areas need the most attention to ensure full FinTech success.
Although the field is still (relatively) new and is very much an upgrade from the banking systems of yesterday, there are very important elements that carry over and you must not ignore these when adopting the system in your company.
Intellectual property. Yes, thanks to the rise of the internet and file-swapping it seems like a relic of the past, but this is still a vital concept to remember if you are aiming to conduct your business in a legal fashion.
The most important issue is systems that are developed in house. Although you might assume you automatically own the patent as the manager of the project, the status of the workers (employee vs. contract, for example) could alter who actually owns IP. To ensure you hold the rights, remember to include a clause in the work agreement stipulating who retains the rights for all work done in house.
Then, of course, you need to look at how Big Data fits into the picture. The rise of technology and the internet has changed so many things about the rights related to new projects and these new areas have to be properly analyzed to ensure your work is protected. Internal controls are vital in this regard, as the U.S. patent office sadly doesn’t have the resources to keep a vigilant eye on every project to ensure everything is above board. Make sure you have someone on your team who fully understands the roles of rights and intellectual property and knows how to ensure the work being done by your team is only being used in the right situations.
To many people, the field of rights is something they rarely (if ever) consider. However, if you are in the business of creating new systems and projects, you need to be well versed in intellectual property to ensure your work is protected and the work that others are doing is also properly referenced. When done well and properly overseen, intellectual property management can ensure you stick out as a strong, independent member of the marketplace.
For more information, download our free ebook at http://leadervest.com/e-books/
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.
The Female Financial Revolution Is Here
FinTech. The word on so many lips at the moment. This is not surprising, as FinTech is a concept that is revolutionary and desperately needed in our changing economy.
One of the major groups set to benefit from the FinTech revolution is the one that makes up about 50% of the population: women. Modern women are dissatisfied with the way the usual banking system functions and are very much in need of a system that better suits their lives, citing reasons like condescending treatment from the institutions, contradictory policies and a sea of one-size-fits-all offerings. Considering these women are running businesses and building empires, a system that see and meets their needs would uncover a healthy profit. How healthy? A 2014 Goldman Sachs report stated that these enterprises owned by women are a market worth around $235 billion.
FinTech knows this and is working to ensure that female business owners are aware that FinTech has their back. Although early impressions suggested women weren’t adequately represented, FinTech is working to amend this by publishing a report highlighting the founders and CEOs in FinTech’s own membership association and pledging to highlight the contributions of women in its upcoming UK FinTech 2020. This action of reaching out to a section of the market that feels underserved means women will likely fully embrace FinTech and take their businesses over with them.
Of course, once they move over to FinTech, they will find a community that will help them grow their businesses and thrive in the modern marketplace. The FinTech system makes it easier for entrepreneurs to obtain loans to start new businesses and find accelerators to help the businesses grow. It also offers services to send money to overseas parties, allowing them new chances to expand the business if they so choose. Plus, the crowdfunding option is a creative and effective way to fund operations will also allowing consumers to feel more involved in the creation of the product.
Women have only been (known) players in the business world for the last 250 years and their presence has yet to be adequately represented—in 2015, only 14% of the highest leadership positions in the top-ranked companies were held by women and 4% of CEOs were women—but gains are being made and the rise of FinTech is only going to help with this momentum.
One such company that truly understands how vital women are in the banking world is Finovate. Founded in 1995 by Jim Bruene, the company puts on conferences that, as the website states, “have showcased cutting-edge banking and financial technology in a unique demo-only format.” Finovate features several women in top roles and these women are helping to coordinate major events that lay out the importance of FinTech in the new economy.
And if you need proof that women deserve a place in the business world, consider this: Monopoly was originally patented by a woman named Lizzie Magie.
For more information, download our free ebook at http://leadervest.com/e-books/
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.
FinTech and DipJar Are Changing the Service Industry
The shift to a cashless society has made life easier for a lot of people, removing the need to fumble with coins and reducing the weight of our wallets. However, the loss of spare change has created an unintended consequence. People in the service industry who rely on the change left in the tip jar to supplement their wages have seen their income decrease while charities that brought in money by accepting people’s coins have seen their coffers shrink.
Enter FinTech to save the day. DipJar–which worked with an accelerator then launched its first pilot test in 2012 and is now working on a national scale–allows people to quickly scan their credit card (in a cup-shaped device, no less) and transfer a tip to the people providing them with a service or campaigning for a charity.
Ryan Kessler, co-founder and CEO of DipJar, thought up the idea when waiting for a coffee after learning from a barista that the new cashless system had decimated the number of tips she received, causing her income to fall about 40%. Believing that people still wanted to give and would happily tip if an easy option was provided, he created a system that allowed people to tip using their credit cards. Considering that tipping and donating are both billion dollar markets, harnessing the new technology to allow people to continue to easily tip or donate is a very logical and intelligent move.
Each DipJar is preset to receive a certain amount ($1, $5, $50, etc.), eliminating the often stressful decision-making process that tends to come with tipping or donating. As Kessler explains, “When you don’t know what the appropriate amount to give is, you end up not giving at all. You don’t want to give too much, you don’t want to give too little, so there’s a lot of power in setting a clear norm. The prospective donor only has to decide that yes, they like this cause, and yes, they want to give. They know the appropriate amount because you’re telling them, and it makes giving much easier and ends up increasing the total amount of giving.”
As technology changes how we act and how we move in the world, it is very important that people and people’s needs don’t get lost in the shuffle. It is fantastic to see people are using FinTech to insure that no one gets left behind and people can continue the process of Investing in Others.
For more information, download our free ebook at http://leadervest.com/e-books/
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.
These Companies Are Using FinTech and Bitcoins to Change the World
If you got into business because of that image of Scrooge McDuck swimming in money, I may have some bad news for you: Those coins are being replaced by bitcoins.
Yes, bitcoins. Although in 2015 it appeared like the buzz around this currency was overdone and bitcoins were going to fall, they surged back and are once again on the market’s lips and stock picks.
The primary reason for their (re)emergence? China. This country is heavily invested in the area and most of the bitcoin trading is being done by large Chinese conglomerates like Huobi and OKCoin.
Although the phasing out of gold coin currency might be bad for Scrooge McDuck, it is excellent news for many non-profits who use the technology to easily amass donations.
WaterAid is a company that works to provide potable water to people living in areas where access is not guaranteed. Thanks to a partnership with BTCX, a Swedish bitcoin company, it is now easy for people to donate bitcoins to help their fight. Just by going to the BTCX webpage, people can easily donate bitcoins to the cause.
Hotelgo24.com is another institution using bitcoins to fund charity, although in a slightly different way: People who use the service to make bookings are rewarded with bitcoins—the reward amount is listed on the website at the bottom of the listing—and can choose to transfer these bitcoins to a charity organization (including WaterAid).
This seemingly simple act of making it easier to donate to charity is huge, as many people don’t believe they have the time or money to really make a difference. True, because of the conversion between $ and bitcoin you may not fully understand how much you are donating, but the money is still getting through and these organizations are doing good work with the bitcoins they receive.
It may still be a while yet before we see the end of real (paper and coin) money, but the movement to the FinTech world is not one to be feared. It brings with it so many advantages that will lead us to the day when we shake our heads and laugh at the thought that we used to have wallets full of bills and coins.
For more information, download our free ebook at http://leadervest.com/e-books/
Why Millennials Love FinTech (And Why This Matters)
Millennials: The generation born between 1981 and 2000, grown in a technologically-enhanced society and just coming into the stage in which they are the true drivers of the economy. (By 2025, millennials will be 75% of the workforce.) Any industry that wants to cater to this 100 million person market (and that’s just North America) that will be worth $7 trillion by 2020 needs to know how to properly entice them.
When it comes to banking, this is the generation that will fully embrace FinTech. The leading bank names all appear on the list of their least loved brands and 70% would choose to get financial services from one of the major technology companies (Amazon, Apple, Google, Paypal, etc.) over one of the national banks. This is very good news for the FinTech crowd.
As this is the generation that grew up in the digital age, it’s not surprising to learn how vital mobile apps are becoming in the modern financial age. Modern financial institutions need to fully embrace how 24/7 the world has become and offer the technology—both through mobile apps and internet banking—that allows users full control over their financial access. This is one of the areas in which FinTech is excelling while the retail banks lag, which explains why the millennials seem poised to abandon typical big bankers in favor of FinTech.
Winning over a millennial consumer is important, as these customers are brand loyal and nearly half (43.5%) say they spread the good word on social media—meaning their business can help bring in more customers. One way to win them over is to have an active presence on social media yourself, bringing (potential) customers in the know via posts and videos illustrating the benefits of your company. Coinify, for example, uses its Facebook group to advertise services, promote events and share articles detailing the importance of bitcoin and the like. The simple act of interacting with followers on your page can do more than an advertising blitz when it comes to maintaining a loyal customer base, especially when you consider the diminishing returns that come with commercials.
The age of FinTech is upon us. As the millennials age and gain more control and as the current stranglehold of the big banks weakens FinTech will be the system people use to manage their money: You can bank on it.
Banking at the Dawn of the New Millennials
What happens when a major financial crisis hits just as you are starting to make a name for yourself in the corporate world, and the cause (or one of the major causes) can be traced to the big banking system? And when said system doesn’t begin to meet your needs as a technologically-savvy consumer?
Big banks should be very wary about the future, as the millennials—now the most dominant sector in the workforce and one of the largest generations in history—do not trust their system and are much more likely to give their business to the new financial companies that base their services in a more technology-inclined area (i.e. FinTech).
FinTech is very aware of the potential in the millennial market and numerous companies are specifically targeting their marketing at this section of the population.
GoFundMe is one such example of a successful new startup. Launched in 2010, it is a new venue for fundraising and has raised over $2 billion just in the last year. Described as some as “online begging,” it is a system that allows users to set up a donation page to support an endless number of causes then easily share it via social media. The most successful fundraisers are those set up to offer support after an illness or disaster, but multiple others have set up pages to fund trips, cars, new products or charitable endeavors.
Still (relatively) young and just starting to get the hang of making money and paying bills, there is always the danger of the stress of work causing millennials to be late on bill payments. But don’t worry, as there’s an app for that. Mint (and its sub-company Mint Bills) is a system designed to clearly show Millennials how they can manage their finances. Clients have their bank accounts, bills and other financial information (investments, etc.) synced into one easy account then have the system analyze their accounts to see if improvements can be made at any point. Mint Bills sends reminders to ensure bills are paid in time and creates an easy link-up so those bills can be paid quickly, reducing late fees and also offers an option of automatic withdrawal, so the system pays the bills for you before they are due. Then, bill statements can be kept within the app, allowing clients to review their payment history at a later point.
When entering the investment field, this generation will be very wary of the major players of yesteryear, having been a large part of the Occupy Wall Street movement. Luckily, the ultimate hero is coming to their rescue. Robinhood is a new type of investment player that proclaims its goal “is to democratize access to the financial markets.” The founders, Vladimir Tenev and Baiju Bhatt, were compelled to create the company once they discovered that trading firms charge investors for each trade, even though it costs them nothing to do the transaction. By offering free trading and easy mobile access, Robinhood Investments is the perfect player for people wary of the Too Big To Fail companies.
As the millennial base gains a stronger hold on the market and their income steadily increases, the value of FinTech companies will undoubtedly rise. This is a generation that has grown up on computers and wants the ease that comes with the new technology. Any company that chooses to adhere to old-school values and technologies will be unable to entice the business of this age group, which will be disastrous as the older generations leave the workforce. Watch for it, as the future really is FinTech.
For more information, download our free ebook at http://leadervest.com/e-books/
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.
2 Billion Reasons Why Mobile Banking Matters
Technology has changed so many aspects of our lives, expanding the world in ways that once couldn’t even be imagined. It has changed the banking world in slight ways (ATMs, PINs, increased security, etc.), but the dawn of FinTech is about to take it through a massive overhaul.
This is a much needed overhaul, as Generation Y and the Millennials are the segments of the population companies now need to cater to and these people have grown up with technology. They want their bank to offer financial services and perks that fit their needs. Considering how big the smartphone industry has become, not to mention how time consuming handing over bills and getting back change now seems, it’s not surprising to discover how vital phone apps have become.
But the importance of this mobile access—and the real reason why its presence is important for modern businesses—goes beyond just making life easier for today’s busy Western businessmen or the younger generations. Because of mobile access, the business world is actually starting to refer more and more to the whole world, which means the financial transactions of other continents is important for modern success. In fact, according to Bill Gates, by 2030 over 2 billion people—many of whom, due to their nationality and poverty levels, have never had a bank account—will be helped by the rise of mobile banking. This means that, thanks to mobile banking, businesses will now have the opportunity to offer their services and products to large sections of the market (we’re talking billions of customers) that were previously inaccessible.
Look at the continent of Africa: Despite a growing economy and a number of major world cities, 80% of the population don’t currently have access to banking services. They do, however, have access to smartphones and in some cases (Kenya and South Africa) they are among the fastest growing markets in the world.
Enter mobile money services. Currently 183 million in Africa have a mobile wallet and that number is ever increasing. In fact, in nine countries, more people have mobile money accounts than bank accounts. If the numbers continue to increase at their current rate, the continent will be fully mobile by 2021. This is a massive population (current population is 1.1 billion) now ready and willing to spend money on new products.
Let’s look at two of the largest mobile money markets.
In Kenya, the primary provider of mobile money services is M-Pesa. Launched in 2007 and used by nearly half the country’s 44 million people, and two-thirds of the adult population, this service is responsible for the movement of one-quarter of the economy. M-Pesa’s success and market saturation can likely be attributed to an easy-to-use transfer system (allowing people to easily and quickly send money home) and its status as the first player in a new game.
Although M-Pesa also offers services in South Africa, it faces much fiercer competition there. MTN, WeChat, Verifone and MFS all have an established presence in the marketplace and offer services and platforms that allow South Africans to rely heavily on mobile wallets while transferring money or paying for products.
What does this growing market mean? Businesses who cater to an international market and want to increase their presence in Africa need to be aware of the mobile wallet reality and work within its system. Make sure you include this option when it comes to bill payment plans. Businesses that feature mobile money services and want to expand their presence on the international stage should be aware of both the potential that lies in the African marketplace and the fierce competition that is already in place.
More so, this saturation in Africa is a good sign of the way the financial world is moving. In today’s 24/7 society, the increased access to banking that FinTech provides is vital. FinTech truly is revolutionizing the financial services industry, leading to more responsible Leadership in Financial Services and FinTech. More importantly, it shows the positive impact that comes from Investing in Others.
For more information, download our free ebook at http://leadervest.com/e-books/
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.
FinTech Beats Back Big Banking in Britain
When people think of England, the things that come to mind are usually tea and the Queen. The reality, of course, is that the United Kingdom has a lot more going for it than tea and royalty.
The United Kingdom is quickly becoming one of the FinTech hotspots. Deal volumes are increasing at much higher rates than in other hotspots (74% verses Silicon Valley’s 13%) and the UK was second in the world for FinTech investments in 2015. According to the Confederation of British Industry, by 2020 the UK FinTech industry will be worth £300 million (or $425 million).
Why are financial investors flocking to this section of the world? Logically, the culture is well set up for a FinTech takeover. It has a technologically-savvy customer base, is already a financial and global trading hub, and the country has a supportive regulatory approach.
Thanks to this environment (not to mention its educated workers), many amazing startups have been set up and are offering services and products that are bringing the FinTech revolution to the general population.
If you hate carrying around a wallet full of bank and credit cards, Curve is ready to simplify the process for you. Their app lets you store the information from your cards—it’s as easy as taking a picture of the card—and use your chosen default card when making transactions (whether it be cash withdrawals or mobile payments). Curve can also be used overseas without an extra charge.
Meanwhile, Funding Circle, led by Pam Burton and hailed as one of the top UK FinTech startups, is an investment startup connecting small businesses with interested backers (removing Big Banking from the equation). Investors supply the needed funds to new companies and receive monthly repayments in return. To date, more than £1.3 billion (or $2 billion) has been pledged to worthy companies. The company, which is led by Pam Burton, was hailed as one of the top UK FinTech startups.
Then there is Mondo. Co-founded by Jason Bates and Tom Blomfield (the current CEO), it is “the UK’s first smart bank” and proclaims that it is designed for today’s smartphone-obsessed society. Still in the building process—the company is creating its own system and groundwork, rather than go the more common route and just update pre-existing bank software—Mondo currently offers its customers services through Alpha and Beta cards, which it is using to test features (although these do not offer all the services Mondo plans to offer once the company receives a full banking license). Clients can purchase these pre-paid (via an app) cards and use them in the marketplace.
UK residents who travel a lot will be keen to link up with Revolut. Led by Nikolay Storonsky, it is one of the FinTech companies trying to reduce the fees that come from using money when overseas. Clients add money to the card and, when it is used abroad, the system changes the money into the local currency. Not only that, Revolut offers an easy way to transfer money to other people through a number of systems (WhatsApp, e-mail, SMS).
This is a small sampling of the hundreds of FinTech companies that are based in the UK, but it gives a good idea of the innovation that is coming out of the UK think-tank. Get ready, because the British FinTech Invasion is happening. Once it’s here, you’ll realize that, like the Beatles sang, “All your life you were just waiting for this moment to arise.”
For more information, download our free ebook at http://leadervest.com/e-books/
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.