SWIFT Institute Talks - Blockchain
18
THINKING STRATEGICALLY ABOUT FINTECH AND THE FUTURE OF BLOCKCHAIN TECHNOLOGY #BFCanada
-
Upload
swift -
Category
Economy & Finance
-
view
322 -
download
0
Transcript of SWIFT Institute Talks - Blockchain
THINKING STRATEGICALLY
ABOUT FINTECH AND THE
FUTURE OF BLOCKCHAIN
TECHNOLOGY
#BFCanada
THINKING STRATEGICALLY ABOUT
FINTECH & THE FUTURE OF
BLOCKCHAIN TECHNOLOGY
Jean-Philippe (JP) VERGNE
PROFESSOR, IVEY BUSINESS SCHOOL
@PIRATEORG
WWW.CRYPTOCAPITALISM.CENTER
Recently, I got a phone call from my bank…
Suspicious activity:
$6.27 The Coffee Company
$37.76 Zara.ca
A legacy payment system that costs tens of millions to
maintain, is customer-unfriendly, incurs a lot of fraud,
and always requires more personal data
STORY #1
STORY #2
Recently, a developer in Kenya:
A new payment system built by one developer, in a few
hours, at no cost. It is cheap to use, user-friendly,
instantaneous, secure, and requires no registration
TAKE-AWAY #1
FinTech is not about deploying cumbersome &
expensive technology, it’s about user experience
DIFFERENT SHADES OF BLOCKCHAIN
Public ledger
Decentralized
Permissionless
Append-only
Cryptocurrency
Few minutes/tx
Open source code
Proof-of-work
Mining
Digital signatures
Crypto hashing
Private ledger
Not decentralized
Permissioned
Editable
No token
Instantaneous
Proprietary code
No proof-of-work
No mining
Digital signatures
Crypto hashing
Colored
coins,
Sidechains…
F
R
O
N
T
B
A
C
K
BITCOIN AN UPGRADED INTRANET
new user
benefits
invisible
cost savings
TAKE-AWAY #2
Blockchain is a buzzword. It can mean a zillion
things. You need to know which blockchain
features drive which benefits and for whom.
WHO’S GETTING “DISRUPTED”?
ST Remittances ($500bn)
E-commerce (incl. micropayments) ($2,000bn)
MT Retail Payments ($25,000bn)
Clearing & Settlement (<$100bn in rev.)
Identity Management
LT Deposits ($50,000bn today)
Central Banking?
WHERE IS THE REAL DISRUPTION?
CitiBank CEO: “Information about money has become
almost as important as money itself”
TAKE-AWAY #3
The short-term effects of blockchain/FinTech in
the most advanced economies are overestimated.
Other effects are underestimated.
WHAT CAN FI’S DO?
Margins likely to decrease
Loss of visibility on data
Cybersecurity even more crucial
New segments
WHAT CAN FI’S DO?
Impression Management
Telling the British gov’t they should
start a national digital currency
“You’re wasting your time with bitcoin”
Margins likely to decrease
Loss of visibility on data
Cybersecurity even more crucial
New segments
WHAT CAN FI’S DO?
Observation
Impression Management
Looking to add bitcoin to a prop fund
Setting up a task force, hiring a crypto developer
Margins likely to decrease
Loss of visibility on data
Cybersecurity even more crucial
New segments
WHAT CAN FI’S DO?
Focused Experimentation
Observation
Impression Management
Setting up an innovation lab for
investment banking applications
Margins likely to decrease
Loss of visibility on data
Cybersecurity even more crucial
New segments
WHAT CAN FI’S DO?
Broad Experimentation
Focused Experimentation
Observation
Impression Management
Building blockchain prototypes, issuing a crypto
(no patent, mostly open source, cross-border)
Margins likely to decrease
Loss of visibility on data
Cybersecurity even more crucial
New segments
WHAT CAN FI’S DO?
Launch of crypto product
Broad Experimentation
Focused Experimentation
Observation
Impression Management
Issuing new products designed for
the crypto ecosystem
Learning
Margins likely to decrease
Loss of visibility on data
Cybersecurity even more crucial
New segments
www.swiftinstitute.org
