The Currency Scene:
News, Events, and Stories about currency from around the world.

From emerging as competitors to becoming collaborators, the bank-FinTech partnership continues to evolve[1]. The FinTech wave begun with the objective of breaking banks[2] and incumbents by disintermediating their service lines and adding an innovative, tech-driven customer experience to deliver innovative offerings. While many FinTechs have established their unique capabilities as a stand-alone entity, the narrative has moved on from breaking banks to working with banks and is in line with working for banks in the coming years as FinTech players now see banks as a valued partner and a potential customer.

Banks, on the other hand, now understand that it’s not prudent to look at FinTech as a competition. Rather, they are increasingly looking to leverage FinTech’s superior technology and front-end capabilities while FinTechs are looking to leverage banks’ vast customer base, infrastructure, and regulatory stronghold to gain scale.

There were hundreds of bank-FinTech partnerships[3] that took place in 2017 through various avenues including accelerators, innovation programs, hackathons, etc. However, banks are now looking beyond accelerators and innovation programs. In December 2017, we had written about[4] how banks and incumbents will turn to acquisition as part of their aggressive innovation strategy, aided by increased investments. We have already seen some early signs as one of the leading insurance incumbents, Allianz, had announced the changeover of its in-house incubator, Allianz X, into a new venture capital investment arm. Banks and other financial institutions are also looking to be following a similar trend as investment activities have begun on a strong note in 2018.

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In the first four months (Jan. ’18 – YTD), there were seven FinTech acquisitions made by banks and FIs across the globe.

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The Logo Story

currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

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