Which country has the best conditions for creating a digital bank
During the Money 20/20 conference held in Las Vegas, there was a heated discussion on where to create a digital bank. The main participants were employees of BBVA and professionals from fintech startup 11:FS. It came to the point that the parties invited two teams of experts to discuss this issue. The main criteria are infrastructure, user data and regulation. The teams of experts represented the USA and the rest of the world (ROW).
Where is it better to create a digital bank?
The first argument of the OSM team was that in the States, so far, only licenses are issued for organizations of this kind, when companies in the EU and Asia are already operating. For example, the Atom app launched by BBVA for the UK market. Opponents from the USA parried: American developments will be easier to grow, because the state has a sufficient number of investors ready to invest money. Let’s try to understand the discussion in more detail.
Issue No. 1. Use of data. During the discussion, professionals had to find out where public resources were used more effectively. Experts from the States did not fail to mention that their country gave the planet such services as Facebook, Google and Amazon, and is also the No. 1 worldwide for user information processing. They believe: this is an invaluable experience that can push the fintech industry to development.
In turn, the representative of BBVA bank Derek White declared: Europe and Asia were able to overtake overseas opponents. In his opinion, the information in the United States is preserved, they are extremely difficult to obtain. In the EU, the struggle for ownership of data, which belongs to customers continues. Financial organizations of the old world seek to help users apply it correctly. The expert recalled the existence of such products as Valora, the mass launch of APIs. China with WeChat service is also mentioned. White considers this model an excellent way to cooperate with users and provide the necessary services.
Issue No. 2. Regulation. The debate came out even more fierce. Experts from the USA noted a more flexible approach to legislation. In Europe, for example, regulatory sandboxes are mandatory for development testing. There’s nothing like this in the States. Overall, representatives of the team felt that comprehensive solutions should be sought at the global level, particularly when it comes to money and information.
Issue No. 3. Interaction with users. Derek White considered this point the most important, because the key to obtaining the necessary information is the experience of the user. This factor will determine the success of new platforms. Professionals from SM relied on the example of BBVA banking application, which was recognized as the best in the world in 2017 and 2018. The expert said that the financial institution first finds out the wishes of customers in the field, and then gives the opportunity to realize them directly on the site. A person does not need to make any effort, he is offered services anywhere. White is sure: here the EU and Asia are ahead.
The last floor was given to the audience, which chose the winner of the debate. These were the experts of the team of the rest of the world.