We’re starting the week with new information from the fintech world. We take a closer look at DeFi and the opportunities it provides for the current market, dive into the latest algorithm: MuZero, read the latest preparations on 6AMLD, explore the importance of ESG metrics for financial services, get a better understanding into social impact financing, BankingTech, and explore the potential of CBDCs. Have a good start of the week!
On DeFi…
The Various Game-Changing Solutions Offered in DeFi (Datafloq)
This analysis by Linda Jones, writer at Datafloq, the topic of DeFi is explored, together with the opportunities it presents for the market. DeFi lending offers crypto assets as loans to eligible borrowers, and lenders receive interest over a period from the debtors. Borrowers will have to pledge collateral that protects them if they fail to pay the loan on time and in full to the lender. In addition, DeFi development is currently raising and gaining a lot of traction with innovative financial solutions being created in the market. Read more
Introducing the newest algorithm: MuZero…
The Impact of MuZero and How AI Could Change Strategy Making (Datafloq)
Dr Mark van Rijmenam, The Digital Speaker and available for (virtual) keynotes in-person, explores a new type of algorithm, MuZero, which can rival AlphaGo or OpenAI Five in games like Go, Chess or Shogi. The development of MuZero shows that it is possible to develop an AI agent in controlled, but complex environments. The next steps of MuZero would be to apply the innovation to real-world cases. Read more
On Regulations…
Preparations underway for 6AMLD (Bobsguide.com)
Barley Laing, UK managing director, Melissa, dives into the sixth anti-money laundering directive (6AMLD) in effect in EU member states from December 3, 2020, which must be implemented by financial institutions by June 3, 2021. 6AMLD brings clarity to specific regulatory details to close loopholes, toughen penalties, and encourage greater cooperation. Its goal is to empower financial institutions and states to do more in the fight against money laundering and the financing of terrorism. Read more
On ESG…
Signal Or Noise? Four Things To Know About Sustainability Metrics (Forbes)
Sarah Keohane Williamson, fintech writer at Forbes, explores the growing trend of “non-traditional” metrics and disclosures on company operations. These disclosures can be called sustainability metrics, ESG (environmental, social, and governance) metrics, stakeholder metrics, or non-financial metrics. With investors generally forming their decisions not on historical financials, but on the expectations of future success, one way to anticipate that success is to see how companies are adapting to changing societal expectations. Read more
Social Impact Financing…
Smarter risk assessment is key to drive equitable financing for SMBs (Finextra)
Payson Johnton, CEO & Co-Founder, Crowdz, highlights the Covid-19 aftermath for the companies who have fared well or thrived, marked by the rise of a new trend: social impact financing. This new wave of corporate social responsibility (CSR) represents a way to support struggling firms during pandemic times. Companies can accurately determine how to allocate their resources in a way that is equitable and effective with the proper risk assessment scoring. Read more
Lessons from 2020: For better banking…
BankingTech Is 2021 the year to inspire better banking? (FinTech Futures)
Sanat Rao, Chief Business Officer and Global Head at Infosys Finacle, pinpoints how 2020 may have presented a new opportunity for banks to be on top of their competition. “In the last few years, banks have invested a lot in modernising the front end,” says Rao. “They didn’t pay attention to the back end. It’s not unusual to have modern technology and the front end and legacy systems and the back end, which will be 30 to even 50 years old.” Read more
On Digital Assets…
CBDCs, the Digital Euro and how it might work (The Finanser)
Chris Skinner, an independent commentator on the financial markets, explores the use of digital currencies by central banks, with assets such as Bitcoin gaining more momentum each day. Building on the results of an analysis conducted by the Bank of International Settlements (BIS), 86% of the central banks surveyed are investigating issuing digital currencies. Moreover, the survey also found that central banks collectively representing a fifth of the world’s population are likely to issue a general purpose CBDC in the next three years. Read more
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