Digital Asset, a developer
of distributed ledger technology, has hired Carol Mathis as its chief financial officer (CFO).
Mathis joins from RBS
Corporate and Institutional Bank, where she was a managing director and chief
operating officer for the past three ...
Franck Mikulecz, managing director of the newly established clearing house FXCH, explains why
and how his firm is using distributed ledger technology to clear spot FX
Profit & Loss: You’ve launched a clearing house to clear spot FX using ...
Along with “Blockchain” the most ubiquitous phrase in financial markets this year has been “FinTech”, which of course encompasses blockchain technology.
Venture capital (VC) money continues to pour into the space, innovation labs and accelerator programmes are sprouting up in banks across the globe and many established technology vendors within the financial services industry appear keen to adopt the FinTech label.
But is the FinTech that we’re seeing come to market now really anything new? Or is it just the continuation of an old trend that’s been given a more exciting and investor-friendly label?
FinTech, and in particular blockchain technology, is set to significantly change how banks operate, according to John Tsang, financial secretary for the Government of Hong Kong SAR.
However, speaking at a Fintech briefing in New York today, he warned that some banks are ill-prepared for the changes that will be driven by this new technology.
“Most of the bankers that I know are the people that are least prepared to deal with FinTech, they have no idea what blockchain is and blockchain is going to change their lives. They might not have a job, to put it in a more brutal way,” he said.
David Mercer, CEO of LMAX Exchange, talks to Galen Stops, deputy editor of Profit & Loss, about why FinTechs are enablers rather than disruptors of the FX market.
The world “disruption” is often applied to FinTech firms, yet Mercer argues that in FX the role of these firms is not to disrupt but to enable the growth of the market.
“We’re trying to enable the industry to operate more efficiently and more fairly. Other people put that disruption word around companies like LMAX Exchange but the FX market is the biggest asset class in the world, it doesn’t really need disrupting, it needs to grow and it needs to be enabled to allow it to grow.