At its Retail (R)Evolution event in April 2017, Pitney Bowes shared research revealing that 94% of global consumers made a domestic online purchase within the last year, nearly half made purchases monthly, and one-quarter made purchases weekly. Pitney Bowes also found that two-thirds of consumers have made a cross-border purchase in the last year. While digital commerce accounts for a relatively small portion of total global retail sales, its growth is outpacing that of traditional brick-and-mortar sales. Aite Group estimates that in Northern America alone, digital commerce sales will be US$715 billion by the year 2020, equating to 11% of total retail sales, and that represents a huge market for retailers to tackle.
On April 26th and 27th, Finovate returns to San Jose with FinovateSpring, the flagship two-day showcase of the latest and greatest fintech innovations from leading established companies and bleeding-edge startups.
You are forgiven for having bigger headlines to focus on, as these are confusing times. Envisioning 20 to 40 years from now takes a backseat to the day-to-day with so many concerns for the average individual and family. At least half of baby boomers are navigating healthcare costs and lower fixed incomes, Gen Xers are straddling college costs and eldercare, and the millennials starting out are paying for weddings, homes, and childcare costs. It’s a busy day all-in. You likely missed the April 5th Senate subcommittee meeting to discuss the state of retirement security in the U.S.
A recent article in the American Banker asked the question “Is it OK for lending algorithms to favor Ivy League schools?” It begins by saying that much of the energy behind the fintech movement (to become chartered banks) comes from its promise of financial inclusion. Unfortunately, that is really not the goal of the fintech, aka alternative lender, movement—making money is. And what is the fintech plan for lending? It’s pretty simple actually. Here is the recipe: Take the inclusive element (credit risk data) out of the mix.
People have engaged in person-to-person (P2P) payments for centuries–beginning with the barter system, through the invention of money and checks, and in the digital age, in which funds can be exchanged electronically via online and mobile applications. The size of the U.S. P2P payments market is driving intense competition between financial institutions (FIs) and alternative P2P payment services. Many FIs now offer P2P payment services as part of their overall digital banking experience in an effort to remain at the center of the consumer’s financial life. Alternative P2P payment services offer innovative digital P2P payment experiences to attract consumers, build a strong customer base, and drive revenue through other value-added products and services.