Hello and welcome to this week’s episode of The Fintech Fix. In this episode, we find out if the challenger banks have finally met their match? Is there a new financial Manifest destiny as Transferwise goes west and is Scandinavia ahead of time when it comes to wearables? Find out, in this episode of The Fintech Fix!
So first up is the news that Nordea and Swedbank are partnering with Fidesmo, a tech company that’s also based out of Sweden to offer their customers the chance to turn their watches into ‘payment instruments.’ It is still in a very small roll-out – currently only watches made by Triwa and Ur & Penn can be turned into a payment device…
However, it is a start and a sign that banks are finally realising the potential design space for payments going forward. Soon children will have no idea why a rectangle shows up on their Mobile wallet, they might wonder why it isn’t a watch! What do wearables open up for payments? Let me know in the comments below!
Now the challenger banks have become the financial celebrities of the post-2008 crash but has their dominance come to an end? Fitch, one of the three credit rating gods has expressed the idea that the ”UK challenger banks might be more vulnerable than the more established banks to late cycle and Brexit related risks.” Have they flown to far to the Sun? The Icarian like rise of these banks during a period of relative stability means that The Bank of England has warned that they might be ‘underestimating their ability to mitigate losses through business growth or capital raising.”
Right, TransferWise is heading out West to be the latest fintech star to attempt to launch itself in the U.S of A. In a mad land grab the fintech unicorns of Monzo, N26 and now TransferWise are all opening accounts in the US. What sets TransferWise apart is that since its accounts are borderless the transfers will be more akin to PayPal. This could be critical in the fight for market domination. To lead the campaign, the company has brought in Tan France a Brit who famously spends a lot of time in the U.S for the hit show Queer Eye on Netflix.
Thanks for watching this weeks episode of The Fintech Fix and catch us next time.