This week in Fintech: Wall Street execs bring insider experience as fintech investors, Amazon hints at payments acquisitions, NASDAQ is bringing transparency to dark pools, better products vs. different products, and the evolution of fintech since 1865.
From Wall Street Banking, a New Wave of Fintech Investors (The New York Times)
Yesterday’s Wall Street executives are investing in the very technologies that threaten to upend the traditional banks’ business models. Are they looking to destroy the companies they once built? They would say no, they are making room for multiple winners in the industry. “We help some of the new tech companies understand exactly what the opportunities are and what they aren’t,” said Hans Morris, former Visa chief and Citi executive. (Header image source: nytimes.com)
Why “different” is better than “better” in Fintech (Disruptive Finance)
A new product ought to be different or better than what already exists. To this columnist, choosing “better” means stiff competition, low margins, and high acquisition costs. In contrast, a “different” product will be hard to assess for user interest and more unpredictable, but also more promising and prone to lasting success.
Amazon eyes fintech acquisitions (Finextra)
Amazon’s payments unit is contemplating acquisitions in the space as fintech valuations come “down to earth,” according to executive Patrick Gauthier. Up against PayPal and Visa, Amazon is looking to expand their payments business across the web on third party sites.
NASDAQ unveils dark pool hosting plan (Finextra)
Seeking more transparency, NASDAQ is offering to take over bank and broker-run dark pools, private trading venues that have come under fire recently for collaborating with high frequency trading firms to rip off retail investors.
The Evolution of Fintech (The New York Times)
Starting with the pantelegraph and the laying of the first trans-Atlantic cable, this timeline ticks off the most significant innovations in financial technology since way before “fintech” was a term. Along the way: online brokers, bitcoin, selfiepay, and more.
Related: last week’s infographic on the Evolution of Financial News.