Business & Finance

The Future of Money

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Professor Jeff Jarvis moderates this interesting panel that brings together some innovators that are playing a role in the disruption of the financial system and the bank system through digital.

Kristo Käärman is the co-founder of TransferWire, a platform that allows international money transfer without the intervention of a bank. In only 4 years, the company has moved 5 billion dollars saving its customers 180 millions in bank fees. Kristo declares that many people don’t like to interact with banks, just because they don’t think they need to.

Sebastian Diemer is Co-Founder and CEO of Kreditech, a company that can provide a credit in minutes.

Anthony Watson, President of Bitreserve, financial service that allows any person or company to trade, hold, exchange or transfer any type of currency.

Matt Gromada is Director of Consumer Product Marketing at PayPal.

What is the future of money, of cash? Kristo explains that cash is really expensive to handle and that there are more efficient ways of moving money than those pieces of paper. Sebastian adds a point: “Cash is a stupid way of exchanging goods and services. It does not drag any data. It would be better if every transaction could be traceable”. According to Anthony, we will go into a cashless society in the middle term, in 10 years from now.

The transformation of the financial system involves reducing costs, improving customer experiences, unlocking valuable data, new currencies (phone minutes, miles…). This disruption is not easy because banks profits are huge, they look for their benefits and not for the consumer’s benefits. Banks are scared of cannibalizing their own revenue streams.

What do customers care about? They care about saving costs, speed, convenience (they want to be in control, but be able to do it just pressing a button of their mobile while they are on the bus). from the bus). And individualization, adds Sebastian, which is possible thanks to increasing data. Matt agrees that users are willing to share their data if they see value coming out of that, so the challenge is figure out how to return them that value. Anthony comments that banks also collect data of individuals, but they do’t use it in a creative way. “The people who are really good at data don’t work for banks they work for other organizations”.