Business Value of Open Source for Financial Services Firms

May 25, 2018 | 24 views

The financial technology industry is moving into a new era of engagement with open source technologies and communities. Having used open source components for decades to build their products and run their datacenters, financial services and fintech firms are increasingly realizing that active participation in open source development is necessary to fully realize their goals to spur innovation, reduce development costs, and attract top talent. This paper outlines how.

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CORE BANKING

Are Asian Nations All Set to Kick off CBDCs? Know Here!

Article | June 22, 2022

Contents 1. Say Hi to the Future 2. Digital Currencies: Types and Companies Involved 3. Why Are CBDC(S) Becoming The Talk of The Town? 4. Are Asian Nations Well On The CBDC Track? Say Hi to the Future! CBDCs, or Central Bank Digital Currencies, are the future of transaction modes and an excellent alternative to cash and private digital money. As the name suggests, CBDCs are digital tokens similar to cryptocurrencies, as both use blockchain technology. However, the significant difference lies in their modes of regulation. While cryptocurrencies are decentralized and highly volatile, CBDCs are regulated directly by a country’s central bank and, thus, are pretty transparent and stable for a financial system. Digital Currencies: Types and Companies Involved Cryptocurrency, Stablecoins, and Central Bank Digital Currencies (CBDC) are the three main digital currencies. Cryptocurrency grew in popularity because it was inexpensive and available in various currencies. Furthermore, its decentralized nature eliminated the role of banks in traditional money transfers, as they acted as intermediaries and thus charged for this. However, with the introduction of cryptocurrencies, the network members acted as intermediaries in the blockchain, and as such, the compensation got minimal. Here’s a list of the top cryptocurrency companies that offer enhanced data security: Advanced Micro Devices: It is an American multinational semiconductor company based in Santa Clara (California). It offers the best combination of CRU and GPU technologies to make faster and more secure blockchain transactions. Alpha Point Corporation: AlphaPoint is a white-label software company powering crypto exchanges worldwide. Its award-winning blockchain technology has helped over 150 clients in 35 countries discover and execute their blockchain strategies since 2013. Intel: By pushing forward in fields like AI, analytics, and cloud-to-edge technology, Intel’s work is at the heart of countless innovations. However, over time, stablecoins gained attention due to their stable nature. These are also cryptocurrencies backed by other cryptocurrencies, fiat currencies, commodities, etc. As suggested by its name, this backing system for stablecoins has been implemented to keep their prices steady and avoid fluctuations altogether. Some of the famous companies dealing in stablecoins include: Gemini: Gemini Trust Company, LLC is a next-generation cryptocurrency exchange and custodian that allows customers to buy, sell, stake, and store digital assets such as Bitcoin and Ether. OKCoin: It is one of the world’s largest and fastest-growing cryptocurrency exchanges. The company helps millions of people buy and sell Bitcoin, Ethereum, Miamicoin and many other crypto assets daily. ConsenSys: It is a leading Ethereum software company that enables developers, enterprises, and people worldwide to build next-generation applications, launch modern financial infrastructure, and access the decentralized web. Why Are CBDCs Becoming the Talk of the Town? Central Bank Digital Currencies are likely to gain much traction as they enable faster and smoother transactions, which are also very safe and secure. Since CBDCs do not involve holding a bank account, this concept will probably be more popular among non-banking individuals. With the recent collapsing examples of commercial banks, CBDCs have a higher chance of survival since the latter involve linking customers’ funds directly to the central bank. CBDCs also promise transparency, as all their transactions are recorded on a digital ledger, enabling authorities to detect fraud and other illicit activities. Are Asian Nations Well on the CBDC Track? Some CBDCs are in the pipeline, while the rest are at different stages of progress in many Asian nations, but none have launched yet! However, CBDCs are picking up steam in Asia. This region is home to many emerging markets that are quick to adapt to new technologies and keen to extract more benefits from innovations. CBDCs are mainly of two types, namely, Retail and Wholesale. While the former (CBDC-R) involves transactions by individuals and businesses, the latter (wCBDC) is more into institutional financial activities or transactions from one bank to another. Coming back to Asian countries and how they are doing with digital currency, one can design for both cases or just one, depending on the country's needs. For example, China and Thailand kicked off both models, while South Korea and Russia followed the CBDC-R model. As per a report from the Atlanta Council, Asian nations such as India, Japan, Indonesia, and Bhutan are at the development stage in both models. Similarly, Thailand and China are in the pilot phase of implementing both models. Meanwhile, nations in the development phase of implementing only the Retail CBDC include Iran, Israel, Lebanon, Turkey, and Cambodia. Besides, Saudi Arabia, UAE, Malaysia, and Singapore are in the pilot phase of the Wholesale CBDC. Meanwhile, nations in the research phase include Georgia, Kuwait, Palestine, Pakistan, and the Philippines. Nevertheless, North Korea is still in inactive mode.

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PAYMENTS

Are Asian Nations All Set to Kick off CBDCs? Know Here!

Article | July 21, 2022

Say Hi to the Future! CBDCs, or Central Bank Digital Currencies, are the future of transaction modes and an excellent alternative to cash and private digital money. As the name suggests, CBDCs are digital tokens similar to cryptocurrencies, as both use blockchain technology. However, the significant difference lies in their modes of regulation. While cryptocurrencies are decentralized and highly volatile, CBDCs are regulated directly by a country’s central bank and, thus, are pretty transparent and stable for a financial system. Why Are CBDCs Becoming the Talk of the Town? Central Bank Digital Currencies are likely to gain much traction as they enable faster and smoother transactions, which are also very safe and secure. Since CBDCs do not involve holding a bank account, this concept will probably be more popular among non-banking individuals. With the recent collapsing examples of commercial banks, CBDCs have a higher chance of survival since the latter involve linking customers’ funds directly to the central bank. CBDCs also promise transparency, as all their transactions are recorded on a digital ledger, enabling authorities to detect fraud and other illicit activities. Are Asian Nations Well on the CBDC Track? Some CBDCs are in the pipeline, while the rest are at different stages of progress in many Asian nations, but none have launched yet! However, CBDCs are picking up steam in Asia. This region is home to many emerging markets that are quick to adapt to new technologies and keen to extract more benefits from innovations. CBDCs are mainly of two types, namely, Retail and Wholesale. While the former (CBDC-R) involves transactions by individuals and businesses, the latter (wCBDC) is more into institutional financial activities or transactions from one bank to another. Coming back to Asian countries and how they are doing with digital currency, one can design for both cases or just one, depending on the country's needs. For example, China and Thailand kicked off both models, while South Korea and Russia followed the CBDC-R model. As per a report from the Atlanta Council, Asian nations such as India, Japan, Indonesia, and Bhutan are at the development stage in both models. Similarly, Thailand and China are in the pilot phase of implementing both models. Meanwhile, nations in the development phase of implementing only the Retail CBDC include Iran, Israel, Lebanon, Turkey, and Cambodia. Besides, Saudi Arabia, UAE, Malaysia, and Singapore are in the pilot phase of the Wholesale CBDC. Meanwhile, nations in the research phase include Georgia, Kuwait, Palestine, Pakistan, and the Philippines. Nevertheless, North Korea is still in inactive mode.

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CORE BANKING

Why Payments-as-a-Service is the first choice for FIs

Article | July 20, 2022

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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Spotlight

ShineWing Australia

ShineWing Australia is a different kind of accounting practice. We’re the new kid on the block with an 80-year history. We’re an independent Australian firm with membership to the largest, indigenous Chinese network, and an international network of firms with a presence in over 100 countries...

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FINANCIAL MANAGEMENT

Trustar Bank Raises $18 Million in New Capital in Latest Stock Offering

Trustar Bank | July 21, 2022

Trustar Bank is pleased to announce the successful completion of its recent capital raise. In less than a month’s time, the offering surpassed its initial $15 million goal, resulting in an over-subscription of 36% and over $20 million in received subscriptions. To accommodate the overwhelming investor support, the offering will be “up-sized” by approximately 20%, for a total capital raise of $18 million. This is the Bank’s second oversubscribed stock offering, the first taking place prior to the Bank’s inception in early 2019. “We are excited to have the continued investor support affording us the opportunity to build an outstanding financial institution serving the needs of our community. This new capital will further position the Bank to effectively implement our growth strategy and build stockholder value,” CEO Shaza Andersen said. “We are excited to have the continued investor support affording us the opportunity to build an outstanding financial institution serving the needs of our community. This new capital will further position the Bank to effectively implement our growth strategy and build stockholder value,” CEO Shaza Andersen said. About the Bank - Trustar Bank is a full-service bank offering comprehensive banking products and services to small- and medium-sized businesses and consumers. It is the first bank to be chartered and opened in Virginia in over a decade. For more information, please visit Trustar Bank online at trustarbank.com.

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Securities Numbering Body Launches Task Force to Standardize Digital Assets

Coindesk | October 23, 2019

The Association of National Numbering Agencies (ANNA) has launched a task force to address digital asset labelings across financial markets. Announced Wednesday, the new task force will consider appropriate International Securities Identification Numbers (ISINs) employed by the International Organisation for Standardisation (ISO), an international body which promotes standardizations across global enterprises. The task force will investigate digital asset labels for cryptocurrencies, tokens, and blockchain technology as it intersects with financial markets, the association said. While most crypto exchanges use a standardized set of ticker symbols, there are some discrepancies that will need to be overcome if traditional financial exchanges are to eventually deal with digital assets. For example, bitcoin, the top cryptocurrency by market cap, has traditionally been labelled BTC, but more recently XBT has been used due to its similarity to gold’s ticker, XAU. Speaking on the announcement, ANNA executive director and secretariat Uwe Meyer called the task force a step forward for traditional markets recognition of the emerging asset class.

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Ontario Regulator Lets Security Token Startup Test Secondary Trading

Coindesk | October 24, 2019

The Ontario Securities Commission (OSC) is allowing a tokenization startup to facilitate secondary-market trading of its tokens by giving the firm regulatory relief for a short time. TokenGX, an affiliate of TokenFunder, has been given the green light to pilot the project to gather data on secondary-market trading, according to an OSC filing. The trading would help TokenFunder, a startup that helps other firms raise funds through token sales, provide liquidity for investors, the regulator said. Both TokenGX and TokenFunder run on the public ethereum blockchain, so initial token offerings, as well as secondary market trading transactions, are visible to anyone. TokenGX is the first company approved by the OSC for such testing, the company said. This isn’t the first time that the regulator has given TokenFunder relief for token-related projects. In October 2017, the OSC gave the startup relief from a dealer registration requirement and approved TokenFunder’s initial token offering, which cleared the way for the offering of its FNDR tokens. In April of this year, TokenGX became an exempt market dealer in Alberta, British Columbia, Ontario and Québec so it could operate its primary distribution platform, which distributes the tokens. TokenGX is working to seek approval in other jurisdictions to run the secondary market, according to the filing.

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FINANCIAL MANAGEMENT

Trustar Bank Raises $18 Million in New Capital in Latest Stock Offering

Trustar Bank | July 21, 2022

Trustar Bank is pleased to announce the successful completion of its recent capital raise. In less than a month’s time, the offering surpassed its initial $15 million goal, resulting in an over-subscription of 36% and over $20 million in received subscriptions. To accommodate the overwhelming investor support, the offering will be “up-sized” by approximately 20%, for a total capital raise of $18 million. This is the Bank’s second oversubscribed stock offering, the first taking place prior to the Bank’s inception in early 2019. “We are excited to have the continued investor support affording us the opportunity to build an outstanding financial institution serving the needs of our community. This new capital will further position the Bank to effectively implement our growth strategy and build stockholder value,” CEO Shaza Andersen said. “We are excited to have the continued investor support affording us the opportunity to build an outstanding financial institution serving the needs of our community. This new capital will further position the Bank to effectively implement our growth strategy and build stockholder value,” CEO Shaza Andersen said. About the Bank - Trustar Bank is a full-service bank offering comprehensive banking products and services to small- and medium-sized businesses and consumers. It is the first bank to be chartered and opened in Virginia in over a decade. For more information, please visit Trustar Bank online at trustarbank.com.

Read More

Securities Numbering Body Launches Task Force to Standardize Digital Assets

Coindesk | October 23, 2019

The Association of National Numbering Agencies (ANNA) has launched a task force to address digital asset labelings across financial markets. Announced Wednesday, the new task force will consider appropriate International Securities Identification Numbers (ISINs) employed by the International Organisation for Standardisation (ISO), an international body which promotes standardizations across global enterprises. The task force will investigate digital asset labels for cryptocurrencies, tokens, and blockchain technology as it intersects with financial markets, the association said. While most crypto exchanges use a standardized set of ticker symbols, there are some discrepancies that will need to be overcome if traditional financial exchanges are to eventually deal with digital assets. For example, bitcoin, the top cryptocurrency by market cap, has traditionally been labelled BTC, but more recently XBT has been used due to its similarity to gold’s ticker, XAU. Speaking on the announcement, ANNA executive director and secretariat Uwe Meyer called the task force a step forward for traditional markets recognition of the emerging asset class.

Read More

Ontario Regulator Lets Security Token Startup Test Secondary Trading

Coindesk | October 24, 2019

The Ontario Securities Commission (OSC) is allowing a tokenization startup to facilitate secondary-market trading of its tokens by giving the firm regulatory relief for a short time. TokenGX, an affiliate of TokenFunder, has been given the green light to pilot the project to gather data on secondary-market trading, according to an OSC filing. The trading would help TokenFunder, a startup that helps other firms raise funds through token sales, provide liquidity for investors, the regulator said. Both TokenGX and TokenFunder run on the public ethereum blockchain, so initial token offerings, as well as secondary market trading transactions, are visible to anyone. TokenGX is the first company approved by the OSC for such testing, the company said. This isn’t the first time that the regulator has given TokenFunder relief for token-related projects. In October 2017, the OSC gave the startup relief from a dealer registration requirement and approved TokenFunder’s initial token offering, which cleared the way for the offering of its FNDR tokens. In April of this year, TokenGX became an exempt market dealer in Alberta, British Columbia, Ontario and Québec so it could operate its primary distribution platform, which distributes the tokens. TokenGX is working to seek approval in other jurisdictions to run the secondary market, according to the filing.

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