"business" entries

The new fintech: mobile, decentralized, and friction-free

The O'Reilly Radar Podcast: Dele Atanda and Mutaz Qubbaj talk about their startup platforms and the disruption in fintech.

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Learn more about Next:Money, O’Reilly’s conference focused on the fundamental transformation taking place in the finance industry.


In this Radar Podcast episode, I chat with Dele Atanda, founder and CEO of Digitteria, about the disruptive state of the financial tech industry, what he thinks is driving that disruption, and why smart data (as opposed to big data) is going to revolutionize finance. I also talk with Mutaz Qubbaj, CEO and co-founder of Squirrel, about about the Squirrel platform, accelerator programs, and how he views the big disruptors in fintech landscape.

We’ve started an investigation — and launched a new summit, Next:Money — here at O’Reilly to look into the disruption happening in the fintech industry, as burgeoning startups create services and products that threaten to disaggregate traditional finance incumbents. I recently had the opportunity to sit down with a number of fintech startup founders and will be featuring several of those conversations in upcoming Radar Podcasts.

Dele Atanda founded Digitteria, a startup developing sustainable identity and personal data management solutions for both consumers and enterprise. I asked him why the time is ripe for disruption — he pointed to the growing complexity of the landscape and compared the current state of the finance industry to the early stages of the Web:

There’s a significant increase in complexity, and in that complexity there’s a much more detailed and rich ecosystem. Banks, it’s difficult for them to be able to tackle all the ends and elements efficiently, so it’s interesting because it’s almost representative of, it’s lacking the evolution of the Web, but it mirrors it in very many ways. Initially, you had these monolithic sort of applications, or browsers, or services that tried to do lots of things, and then we moved into the mobile era where things became much more siloed and application centric, where you did one thing particularly well. That’s inevitably going to happen in the fintech space. They say that the currency of the industrial era was paper, and the currency of the knowledge era is the electron.

Money is primarily electronic now, so it’s inevitable that there’s going to become this confluence between the Web and finance in that regard. I think, of course, because of security, regulatory issues, and the cultural dimension of money, there’s been a lag and resistance. Now that the Web has reached a level of maturity that it can address those issues, I think that’s inevitable.

Read more…

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Filing cabinets, GAAP, and the accountant’s dilemma

The inability to take advantage of digital technology is as big a threat to financial organizations as any fintech startup.

Learn more about Next:Money, O’Reilly’s conference focused on the fundamental transformation taking place in the finance industry.

Burroughs_adding_machineThere’s plenty of news about the fintech, or financial technology, sector these days. Hundreds of nimble startups are disaggregating the age-old financial systems on which every transaction has relied for decades. There’s little doubt that this will continue — after all, more than four billion humans have a mobile phone, and 1.3 billion know how to use a Facebook feed, but only a billion are what we’d consider “normally banked.” Something’s got to give, and software is eating traditional financial systems one bite at a time.

But the existing financial industry isn’t just under threat from outside. Many of the processes and institutions of finance have been around for centuries, and their processes are tied to physical systems rather than digital ones. As a result, they’re unable to take advantage of digital innovations easily and remain competitive. Read more…

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Here’s why finance is about to be disrupted

O'Reilly's Next:Money event helps business leaders understand the fundamental shifts reshaping finance.

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Learn more about Next:Money, O’Reilly’s conference focused on the fundamental transformation taking place in the finance industry.

Editor’s note: We’re approaching an inflection point in all things “money” — currency, transactions, markets, and capitalism itself. Fundamental changes in the financial industry, driven by technology but with implications for every business and government, are beginning to manifest, bringing both disruption and opportunity. We created O’Reilly’s new conference, Next:Money to help business leaders understand and act on this shift. Below, Next:Money program chair Paul Kedrosky lays out the forces and patterns that are reshaping the financial industry.


Finance has the three main characteristics of an industry likely to be transformed by technology:

  1. It traffics in bits, not atoms.
  2. Its services are often delivered remotely.
  3. There is little need for human contact.

Unlike other sectors with these characteristics — e.g., media, advertising, and travel services — finance hasn’t been disrupted. Despite huge technological change and a series of financial crises, the league table of the largest financial firms today, both in the U.S. and around the world, remains much the same as it has always been.

Granted, the $1.2-trillion U.S. financial services industry isn’t homogenous. Its main components — banks, brokers, asset managers, markets, payment networks, insurers, and credit card companies — are very different, and have seen widely varying degrees of technology-induced change. In no sense, however, is this industry as transformed by new companies and new business models as one would expect, given its disruption-ready characteristics.

So, why haven’t entrepreneurs transformed finance? There are (at least) five reasons: Read more…

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Four short links: 7 May 2015

Four short links: 7 May 2015

Predicting Hits, Pricing Strategies, Quis Calculiet Shifty Custodes, Docker Security

  1. Predicting a Billboard Music Hit (YouTube) — Shazam VP of Music and Platforms at Strata London. With relative accuracy, we can predict 33 days out what song will go to No. 1 on the Billboard charts in the U.S.
  2. Psychological Pricing Strategies — a handy wrap-up of evil^wuseful pricing strategies to know.
  3. What Two Programmers Have Revealed So Far About Seattle Police Officers Who Are Still in Uniformthrough their shrewd use of Washington’s Public Records Act, the two Seattle residents are now the closest thing the city has to a civilian police-oversight board. In the last year and a half, they have acquired hundreds of reports, videos, and 911 calls related to the Seattle Police Department’s internal investigations of officer misconduct between 2010 and 2013. And though they have only combed through a small portion of the data, they say they have found several instances of officers appearing to lie, use racist language, and use excessive force—with no consequences. In fact, they believe that the Office of Professional Accountability (OPA) has systematically “run interference” for cops. In the aforementioned cases of alleged officer misconduct, all of the involved officers were exonerated and still remain on the force.
  4. Understanding Docker Security and Best Practices — explanation of container security and a benchmark for security practices, though email addresses will need to be surrendered in exchange for the good info.
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Four short links: 1 May 2015

Four short links: 1 May 2015

Go Examples, Penrose Map Hacks, Robotics Industry, and Archaeological Robotics

  1. Go By Example — a chance to replicate the experience of learning Perl or PHP, whereby you know nothing but copy and adapt other people’s code until it works and you’ve empirically acquired an intuition for what will trigger the compiler’s deathray and eventually someone points you to the docs that were opaque and suddenly a lightbulb goes off in your head and you shout “omigod I finally get it!” and the Real Engineer beside you rolls their eyes and gets back to genericising their containers for consensus or whatever it is that Real Engineers do now.
  2. Penrose Binning — entrancing visual hack for maps.
  3. Chinese Shopping for Robotic Ventures — Amazon has drones, Facebook has VR, Google and China are fighting it out for Robots. Meanwhile, Apple is curled up in a mountain filled with gold, their paws twitching and stroking their watches as they dream of battles to come.
  4. Robot Arm Brings Humanity Back to the Stone Age (IEEE) — Using robots to build a massive database of scrape/wear patterns for different stone-age tools. Currently, Iovita is experiencing some opposition from within his own profession. Some believe that manual experiments are closer to the past reality; others find that use-wear analysis in general does not advance archaeological theory. Iovita thinks this is mainly due to the fact that most archaeologists have a humanities background and are not familiar with the world of engineers. OH SNAP.
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Four short links: 28 April 2015

Four short links: 28 April 2015

Mobile Numbers, Robot Growth, Business Town, and The Modern Economy

  1. Defining Mobile (Luke Wroblewski) — numbers on size, orientation, and # of thumbs across mobile users. 94% of the time, it’s in portrait mode.
  2. PwC Manufacturing Barometer: RoboticsPlanned acquisition of robotics systems over the next two to three years was cited by a maximum of 58% -– with nearly one-third (31%) planning to acquire a moderate amount (25%) or many more robotics systems (only 6%). A larger number plan to acquire a limited number of robotics systems (27%). (via Robohub)
  3. Welcome to Business Town — delightful satire. Captain of Moonshots is my favourite.
  4. The Asshole Factory (Umair Haque) — The Great Enterprise of this age is the Asshole Industry. And that’s not just a tragedy. It is something approaching the moral equivalent of a crime. For it demolishes human potential in precisely the same way as locking up someone innocent, and throwing away the key.
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Four short links: 24 April 2015

Four short links: 24 April 2015

Jeff Jonas, Siri and Mesos, YouTube's Bandwidth Bill, and AWS Numbers

  1. Decoding Jeff Jonas (National Geographic) — “He thinks in three—no, four dimensions,” Nathan says. “He has a data warehouse in his head.” And that’s where the work takes place—in his head. Not on paper. Not on a computer. He resorts to paper only to work the details out. When asked about his thought process, Jonas reaches for words, then says: “It’s like a Rubik’s Cube. It all clicks into place. “The solution,” he says, is “simply there to find.” Jeff’s a genius and has his own language for explaining what he does. This quote goes a long way to explaining it.
  2. How Apple Uses Mesos for Siri — great to see not only some details of the tooling that Apple built, but also their acknowledgement of the open source foundations and ongoing engagement with those open source communities. There have been times in the past when Apple felt like a parasite on the commons rather than a participant.
  3. Cheaper Bandwidth or Bust: How Google Saved YouTube (ArsTechnica) — Remember YouTube’s $2 million-a-month bandwidth bill before the Google acquisition? While it wasn’t an overnight transition, apply Google’s data center expertise, and this cost drops to about $666,000 a month.
  4. AWS Business NumbersAmazon Web Services generated $5.2 billion over the past four quarters, and almost $700 million in operating income. During the first quarter of 2015, AWS sales reached $1.6 billion, up 49% year-over-year, and roughly 7% of Amazon’s overall sales.
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Four short links: 22 April 2015

Four short links: 22 April 2015

Perfect Security, Distributing Secrets, Stale Reads, and Digital Conversions

  1. Perfect Security (99% Invisible) — Since we lost perfect security in the 1850s, it has has remained elusive. Despite tremendous leaps forward in security technology, we have never been able to get perfect security back. History of physical security, relevant to digital security today.
  2. keywhiz a system for managing and distributing secrets. It can fit well with a service oriented architecture (SOA).
  3. Call Me Maybe: MongoDB Stale Reads — a master class in understanding modern distributed systems. Kyle’s blog is consistently some of the best technical writing around today.
  4. Users Convert to Digital Subscribers at a Rate of 1% (Julie Starr) — and other highlights of Jeff Jarvis’s new book, Geeks Bearing Gifts.
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Four short links: 8 April 2015

Four short links: 8 April 2015

Learning Poses, Kafkaesque Things, Hiring Research, and Robotic Movement

  1. Apple Patent on Learning-based Estimation of Hand and Finger Pose — machine learning to identify gestures (hand poses) that works even when partially occluded. See writeup in Apple Insider.
  2. The Internet of Kafkaesque Things (ACLU) — As computers are deployed in more regulatory roles, and therefore make more judgments about us, we may be afflicted with many more of the rigid, unjust rulings for which bureaucracies are so notorious.
  3. Schmidt and Hunter (1998): Validity and Utility of Selection Methods in Personnel (PDF) — On the basis of meta-analytic findings, this article examines and summarizes what 85 years of research in personnel psychology has revealed about the validity of measures of 19 different selection methods that can be used in making decisions about hiring, training, and developmental assignments. (via Wired)
  4. Complete Force Control in Constrained Under-actuated Mechanical Systems (Robohub) — Nori focuses on finding ways to advance the dynamic system of a robot – the forces that interact and make the system move. Key to developing dynamic movements in a robot is control, accompanied by the way the robot interacts with the environment. Nori talks us through the latest developments, designs, and formulas for floating-base/constrained mechanical systems, whole-body motion control of humanoid systems, whole-body dynamics computation on the iCub humanoid, and finishes with a video on recent implementations of whole-body motion control on the iCub. Video and download of presentation.
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Four short links: 6 April 2015

Four short links: 6 April 2015

Disruption, Copyright Investment, Max Headroom, and Right to Tinker

  1. The Difference Between Direct Competition and DisruptionAs the ships grow, their engines have become vastly more efficient and sophisticated, the fuel mix has changed, and complex IT infrastructure has been put in place to coordinate the movement of the containers and ships. But fundamentally, the underlying cost structure of the business has not changed from 1950, when the first container ships carried a mere 500 to 800 containers across the world. (via Salim Virani)
  2. The Impact of Copyright Policy Changes on Venture Capital Investment in Cloud Computing Companies (PDF) — Our findings suggest that decisions around the scope of copyrights can have significant impacts on investment and innovation. We find that VC investment in cloud computing firms increased significantly in the U.S. relative to the EU after the Cablevision decision. Our results suggest that the Cablevision decision led to additional incremental investment in U.S. cloud computing firms that ranged from $728 million to approximately $1.3 billion over the two-and-a-half years after the decision. When paired with the findings of the enhanced effects of VC investment relative to corporate investment, this may be the equivalent of $2 to $5 billion in traditional R&D investment.
  3. Max Headroom Oral History“Anybody under the age of 25 just loved it. And anybody above that age was just completely confused.”
  4. Auto Makers Say You Don’t Own Your Car (EFF) — Most of the automakers operating in the U.S. filed opposition comments through trade associations, along with a couple of other vehicle manufacturers. They warn that owners with the freedom to inspect and modify code will be capable of violating a wide range of laws and harming themselves and others. They say you shouldn’t be allowed to repair your own car because you might not do it right. They say you shouldn’t be allowed to modify the code in your car because you might defraud a used car purchaser by changing the mileage. They say no one should be allowed to even look at the code without the manufacturer’s permission because letting the public learn how cars work could help malicious hackers, “third-party software developers” (the horror!), and competitors.
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