Weekly analysis & opinion highlights 16 October 2020

According to Ray Youssef, co-founder and CEO of Paxful, DeFi might potentially have the solution for financial inclusion. With the fast-paced development of DeFi and the possibility to tokenize everything onto a DeFi app, a bridge between all the world’s currencies can be expected. Another benefit unlocked by DeFi is the decentralized price discovery, which could offer users a price based on P2P crypto to fiat trades and give a true meaning to the dollar-Bitcoin street price. Read more

Robert Douglas, Europe Planning Director at Workday Adaptive Planning, argues that digitalization has been a key movement adopted by financial services in times of pandemic. Digital transformation has helped financial teams to strengthen their data accuracy and automation analysis procedures, to make more efficient forecast scenarios for businesses, and to create strategies for executives to better adapt to new challenges. However, financial services are one of the sectors lacking behind in embracing digital transformation, mainly due to lack of skills in businesses and resistance to change from internal parties. Read more

According to Christina Luttrell, chief operating officer at IDology, today’s consumer is strongly focused on getting a digital experience, thus the banking industry needs to ensure an optimal customer journey, by including offerings such as identity verification. With studies showing that consumers opt in for financial institutions using more advanced technology for identity verification and drop out when they feel that the experience isn’t smooth or safe enough, banks need to ensure an efficient onboarding process for the digital consumers. Read more

In a recent study by Onfido, “How to Detect the 7 Types of Document and Identity Fraud”, the importance of new solutions for data protection is highlighted. The analysis presents an overview with types of measurements that can be undertaken  by businesses in identifying and acting accordingly to protect their clients. As such, the paper emphasizes primary forms of forged documents, such as modified documents, illegitimate documents, falsely represented documents and different levels of fraud sophistication. Read more

InvestorPlace describes in a recent analysis the growth of Root Insurance’s IPO, which could fetch a valuation of more than $6 billion. Although Root Insurance has also seen an increase from 2019 to the half of this year, with revenues climbing from $104.1 million to $245.4 million, its IPO is not without its risks. For insurance companies especially, the main issue lies in their early-stage phase, when they try to trespass their business limits. Read more

According to L.S. Howard, international editor for Insurance Journal and Carrier Management, digital transformation has impacted the insurance sector on multiple fronts. With the rise of automated placement, the insurance industry adapted to the new standards and transitioned to a digital format with hardly any impact on customers. In terms of changes, insurers have had to face and overcome a big challenge for their field: moving from the standard face-to-face interactions with clients to a virtual environment. Read more

In a report by the National Security Commission of Artificial Intelligence, “Interim Report and Third Quarter Recommendations”, the US government is urged to implement new changes to support AI technology. As such, the report proposes a special attention to investing in AI R&D, strengthening the triangular alliance for AI R&D, using AI for national security, recruiting AI talent, protecting and building on U.S. technology advantages, nurturing tech partnerships and implementing an ethics code for AI use. Read more

According to Suraj Prakash, Head – Information Technology at Capri Global Capital, adopting digital capabilities can ultimately be an asset for businesses. As first steps to adopting new technologies, the focus should be on training the existing workforce with the necessary skills to use the innovations, planning a strategy which includes factors such as technological and talent needs, comparing market tools, deciding between open sources and proprietary tools and constantly upgrading systems. Read more

Satis Group Co-Founder and General Counsel, Emma Channing, looks at the first half of 2020 in terms of digital asset platforms for capital markets transactions. As such, the analysis presents an overview of the most remarkable blockchain transactions, including:

  • February: Citi and Goldman Sach going live with a blockchain-based equity swaps platform powered by Axoni
  • July: McDermott announced that Goldman Sachs was considering creating their own fiat digital token in possible collaboration with JPM and Facebook
  • September: Singapore Exchange (SGX) announced it completed its first digital bond issuance

Read more

Root Insurance plans on going public, raising concerns among some industry experts. The company which focuses on automotive, claims to be the only P&C insurance carrier with a scaled proprietary telematics solution. One major concern raises from the fact that Root has had an underwriting performance and a low cross-sell success. Read more

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