Akeo Tech Deck

89% percent of merchants in the Airlines industry, supermarket industry and subscription services are prepared for Open Banking and have assessed the impact it will have on their business, a research by Nuapay revealed. The report also shows merchants are understanding the benefits Open Banking could unlock. Some of the prime benefits are as follows -

1. Reduction in transaction fees
2. Instant receipt of payments
3. Improved access to loans
4. Reduced security risk

A survey conducted by Open Data Institute and PwC UK with over 1,000 retail and SME banking customers across the UK says "By 2022, it is expected that 71% of SMEs are going to adopt OpenBanking".

Open banking is going to enable integrated accounting and tax services, cash flow and deposit management as well as customized lending services post analyzing account data for the SMEs.

The number of API requests made in the UK has more than doubled since February and reached 49.1 million in April. Experian’s Open Data Platform underpinned more than 20 million of the total API requests made. People are embracing a new wave of apps and services to help manage their money or share bank account transaction data to improve access to finance.

As per the new data from Juniper Research, the volume of domestic money transfers via mobiles will exceed 203 billion in 2024, up from 130 billion in 2019. Domestic transfers are being driven by increasingly easy mobile payment systems. A major chunk of this growth will come from P2P payments and will account for 80% of all domestic transfers in 2024.

An independent report - ‘Consumer Priorities for Open Banking’ suggests that Open Banking can contribute £18 billion per year to the UK economy. Understanding the benefits that Open Banking can unlock, we, at Akeo believe that this new approach is going to deliver exceptional value for consumers by building a trustworthy ecosystem and stimulating the market to take actions quickly. It will also help SMEs to get better deals and access to the banking products they need effectively.

According to Forrester Research, digital payments done by consumers will be over 34 billion dollars at the end of 2019. Thanks to this high demand, financial institutions will focus more on new-age payment technology to deal with it.

The blockchain market hand-held by banking and financial industry moves into rapid growth mode and is predicted to reach $60 billion worldwide in 2024.

After an inauspicious beginning, blockchain is on the cusp of phenomenal growth as it creates new digital economic infrastructure. Businesses all over the world are investing in technology to build innovative financial solutions. Blockchain is spurred by more modern ways to manage global transactions across national borders from IBM, Microsoft, and Accenture.

When a person dies finding out whether he had a life insurance policy and filing a claim is not easy. MetLife is utilizing the live public Ethereum blockchain to add transparency and efficiency to the life insurance claims process. This program has the potential to transform the insurance industry as a whole, creating new markets, products, and servicing a diverse set of customers at lower costs.

Have you ever thought that individual shares in a property could be bought for as little as €6.50? Yes, blockchain has made it possible!

The luxury building Anna Villa in Paris made history by becoming the first ever European property to be sold entirely via blockchain transaction. The property was valued at €6.5 million was sold through blockchain tokenization.

The tokenization process involved first transferring ownership of the building to a joint-stock company (SAPEB Anna), then dividing the company into 100 tokens to be distributed to the owners respectively. Each token can be further broken down into 100,000 units, meaning individual shares of the building can be bought and sold for as little as €6.50.

Read to know how blockchain via tokenization is revolutionizing real estate: http://bit.ly/2lWvxYo

Ripple documented more transactions on the network in the first quarter of this year than in all of 2018. Liquidity management is really where the cost lies for banks because now some of the oldest markets in the world are moving to real-time. When that occurs, there will be a convergence towards new technology and the banks will experience it.

Read our E-book to know more about the Blockchain and Finance Industry: http://bit.ly/Akeo-eBook-Blockchain-Banking-and-Finance

Microsoft and Accenture are partnering on a blockchain initiative to build digital identifications for 1.1 billion people as part of the United Nation's ID 2020 program.

By using blockchain, the goal of the UN's ID 2020 program is to provide IDs to millions of refugees around the world who lack legal paperwork or have lost their dentification and other records.

Wall Street Journal reported that after initial tests, 12 of the world's biggest companies are building a platform on blockchain to remake how the industry tracks food worldwide.

Blockchain can be useful for the retailers to track their stock, provides assurance for food safety, keep a better track on the manufacturing dates of the products and even locations can also be tracked. This could help eradicate the use of unreliable suppliers, poor quality ingredients, help prevent counterfeiting, and child labor.

TradeLens, an open platform launched by Maersk and IBM, has enormous potential to digitalize the supply chain and build collaboration through blockchain. The platform provides a host of benefits to the industry; tracking the flow of cargo from source to destination and connecting various parties involved in the shipment.

Recently, two major shipping giants - CMA CGM and MSC have joined the platform with an aim to leverage the benefits of digitalization. With CMA CGM, MSC, and Maersk being associated with TradeLens, the blockchain based consortium now encompasses data of almost half of the world’s cargo shipments.

According to a report by Startup Body Tech Nation, UK is the world's top Fintech hub with high growth firms attracting more than £4.5bn in investment over three years. London continues to lead the country in attracting high-growth tech investment receiving £9bn, followed by Cambridge with £583m.

According to Google Trends, Blockchain technology was one of the most trending topics in 2018. Interest in the emerging technology was highest in Malta, closely followed by China and Ghana.

Recent news suggests, Malta is set to have the world’s first government agency fully run on blockchain. The blockchain island, as the country is now widely known, will have its Registry of Companies running on a blockchain system.

Technology and innovation are making possible a new generation of financialservices that are more affordable and easily available. The new system of lending and credit, which began as PeertoPeer (P2P) is now creating great value and redefining the finance industry as a whole. According to the report “A Trillion Dollar Market By the People, For the People” by Foundation Capital, “Peer to Peer lending will be a trillion-dollar market by 2025.”

However, P2Plending’s potential does not mean that banks will be pushed out of business. Instead, they must get ready to play a significant role in technology-driven financial institutions in this new-age disruption.

Applying for a business loan from a bank? The interest rates and time for loan disbursement are quite high.

Probably that’s the reason why 76% of businesses in Europe prefer to get finance from alternative lending models like P2P and invoice trading. According to a study done by the University of Cambridge, Fintech has improved access to finance for SMEs. The innovative and technology led approach of these startups seems to be having a positive impact, especially on social and charitable enterprises.

According to Pymnts.com, while businesses within Europe are slowly getting used to PSD2, many of them remain unaware of SCA (Strong Customer Authentication).

SCA, a part of the PSD2 regulation will become mandatory on 14th of September 2019, applying to payments that are either entering or leaving the EU border. This means it will impact both US, non-EU, and EU card issuers and acquirers alike. To know more about SCA read our blog here: http://bit.ly/2lAQ2cL

According to a report by Research and Markets, the overall growth for the global Fintech market is estimated to reach USD 305.7 billion by 2023. Among all the other segments, payment and billing segment will be the major growth driver, leading to total revenue of USD 207.11bn, which is a massive 67.75% of the total Fintech market growth.

This extensive growth will be majorly driven by the new regulations launched by EU - PSD2. The directive promises to transform the payment sector by promoting innovation and competition in the market.

According to official data released by UK Finance, scammers stole £1.2bn from UK bank clients in 2018. A close to 500% jump has been noticed in the fake cheque fraud, revealing that criminals are still using the old-school techniques.

Refer to this blog and get a glimpse of how with the help of PSD2, banks and FinTech can secure payments. http://bit.ly/2kfXgmv

The Revised Payment Service Directive will open up the market for Fintech firms and emerging banks, presenting a direct challenge to the current banking model. As a result, the EU directive will open up the market like never before.

Here is a report by Roland Berger, a global strategy consulting firm, that navigates the changes to payment regulations that might come after the implementation of PSD2. According to the report, “The EU directive will affect 1 billion current accounts and 40% of net banking income.”

According to the report by Accenture, “Banks in Europe (77%), North America (72%) and Asia (61%) plan to invest up to USD$20 million each to undertake open banking initiatives for commercial customers.” With them, ambitious IT companies are eager to be a part of this growing and flourishing ecosystem. Here is an article highlighting business opportunities with open banking. http://bit.ly/2lXjz0H

PSD2 has brought banks and emerging Fintech firms together to bring about new possibilities for creating a customer-centric financial ecosystem. This ecosystem is capable of changing the payments value chain, the use of account information, existing business models, and customer experience.

The report by EVRY ASA suggests that the entrance of non-banks to the financial markets will become more efficient and bring a boom in the investment landscape. The global investment in the finance sector will exceed $150bn by 2021.

Revised Payment Services Directive (PSD2) is set to accelerate the competition and digital disruption with the introduction of AISPs and PISPs in the financial service sector in Europe and beyond.

A report by Accenture suggests, the introduction of PISPs will erode 33% of online debit card transaction volume and 10% of online credit card transaction volume. As a result, PISPs will own 16% of the total market share of online retail payment volume by 2020.

Cognizant reports businesses are enthusiastic about AI. They see it as having a growing impact on their businesses with 63% believing it is very important to their company’s success. Business leaders also believe it can be applied throughout their organizations in a wide variety of functions, with customer service (30%), manufacturing/production (26%), operations (20%) and research and development (18%) cited most often.

Continuous Intelligence is an approach in which real-time data analysis is integrated within business operations. It processes current and historical data to prescribe actions in response to events. It allows businesses to quickly understand the data and accelerate the analysis needed, no matter how many data sources there are or how vast the volumes.

Gartner predicts that by 2022, more than half of major new businesses will incorporate continuous intelligence for immediate action and strategy building.

Accenture released a report on Open Banking that outlines the innovative trends in the banking and finance sector. The report says, “Most global banks now view Open Banking as an innovative banking trend that can drive tremendous growth. Also, banks can exploit Open Banking to strengthen their customer relationships and brand and flourish business through open collaboration beyond financial services.”

A report from IBM Marketing Cloud - 10 Key Marketing Trends For 2017 suggests, “Over 2.5 quintillion bytes of data is created every single day, and it’s only going to grow from there. By 2020, it’s estimated that 1.7MB of data will be created every second for every person on earth - and with new devices, sensors, and technologies emerging, the data growth rate will likely accelerate even more.

There is a growing demand for integrated healthcare services along with the need for information technology-based system to manage data. Blockchain proves to be a great solution for major problems faced by the healthcare industry.

According to the report by Zion Market Research, global blockchain technology in the healthcare market will grow at a CAGR of around 70.45% between 2018 and 2024 and is expected to generate revenue of around USD 1415.59 million.

Hyperledger is a blockchain technology which is gaining traction around the world in market segments from finance to healthcare and government to logistics. Hyperledger's global community started with 10 members initially. And now, more than 270 organizations are now contributing to the growth of Hyperledgers’ open source distributed ledger frameworks and tools.

A cybersecurity firm Gemalto conducted a survey recently on blockchain technology. The report suggests that blockchain adoption in the Internet of Things (IoT) industry more than doubled over the last 12 months. The numbers are extraordinary, and we foresee more such industries adopting blockchain in the coming years.

IBM, a founding member of the open-source Hyperledger project, has emerged as a strong advocate for the blockchain technology. The tech giant has pursued a variety of projects involving blockchain - from dispute resolution systems to cloud-based security frameworks.

The company has announced to invest $200 million to fuel its Internet of Things and blockchain efforts. Using the technologies, businesses can share IoT data in a secure, private blockchain to reduce costs and complexities of doing business across a network of people and goods.

A cybersecurity firm Gemalto conducted a survey recently on blockchain technology. The report suggests that blockchain adoption in the Internet of Things (IoT) industry more than doubled over the last 12 months. The numbers are extraordinary, and we foresee more such industries adopting blockchain in the coming years.

A Research from Gartner says that 300 million blockchain transactions were processed through the end of 2017. The distributed ledger technology has managed and distributed more than $270 billion in transactions.

Enabling an ecosystem of millions of participants (nodes) who don’t trust each other and perhaps don’t even know each other, to create and exchange value is what gives blockchain technology the potential to be disruptive.

With every industry being digitalized, it is quite evident that technologies will play a vital role in global economic growth. On the same lines, McKinsey Global Institute recently reported the significance of Artificial Intelligence on the world economy.

The report suggests that AI will deliver massive business opportunities to increase global GDP by up to 16% by 2030. If this happens, this could be amongst the biggest technology impact on the growth of the global economy.

Blockchain’s components such as cryptographic hashes, distributed databases, and consensus building, when combined, create a powerful new form of data sharing and asset transfer, capable of eliminating intermediaries, expensive and cumbersome processes.

Deploying blockchain to run some banking processes, costs associated with compliance, business operations such as KYC checks and finance reporting could fall by between $8 to $12 billion a year - suggests report issued by McLagan and Accenture.

The rise in blockchain patent applications comes as both established companies and start-ups looking to leverage the technology beyond cryptocurrencies. As per the research from Thomson Reuters, China accounted for 56% of 406 blockchain patents filed internationally and attained a dominant position in blockchain patent applications.

The increase in patent applications filed reflects the growing interest in the use of blockchain – beyond cryptocurrencies – by a variety of industries.

Smart Dubai and IBM launched the Dubai Blockchain Platform, the first government-endorsed blockchain platform-as-a-service in the UAE. The platform will be powered by IBM’s mainframe technology, LinuxONE, which is capable of running more than 6.2 billion web transactions per day.

The new Dubai Blockchain Platform will help integrate digitized services and experiences run on IBM Blockchain into citizens’ day-to-day lives. Dubai has been leading efforts to encourage the use of blockchain, with a vision to make the emirate a paperless government by 2021.

Blockchain as an emerging technology is gaining grounds. A recent report published by Meticulous Research predicts that the global blockchain market would reach an impressive $28 billion by the year 2025 with a CAGR of 74.1%. The report also states that the current size of the blockchain market is around $385.5 million. A rise in adoption of BaaS, financial institutions interest in the technology and government acceptance of the technology are some of the key factors driving the growth of the global blockchain market.

Investments in real estate come with humongous additional costs like transfer fees, attorney fees, and exchange fees. Lantmäteriet, a Swedish Government initiative in the real estate industry believes that the additional costs can be minimized with the help of blockchain technology. As good as 3-5 billion SEK can be saved every year by the decentralized technology for customers and operators in the real estate industry.

Michael Arrington, the founder of the TechCrunch became the first man to buy a property in Ukraine via a blockchain platform called Propy.com. Blockchain as a technology is breaking barriers and helping people to buy properties overseas without stepping a foot in that country.

Blockchain is helping to speed up the process of international property transactions and exchanging paper contracts. The technology is also helping to make transactions more transparent and enabling people to buy international properties effortlessly.

The real estate market in Norway has been rising high since the turn of the millennium. Despite prediction of the market slowing down, we have seen a sale of massive 51000 properties just in the third quarter of 2018. If Norway had introduced emerging technology like blockchain into the national land registry, Kartverket, the time span taken to register land sale could be brought down – from weeks to just a few hours. The possibilities are immense, and we at Akeo think that we should look to Sweden and their exciting project of using blockchain in land registry.

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