Abstract
This final chapter of the book looks at one of the topics that is at the forefront of many CEO minds across industries, Digital and the opportunity/threat that means for incumbent players. After providing a historical context of the co-evolution of technology and banking, the chapter examines the dynamics between FinTechs and Incumbent Banks, its impact on the industry and suggests best-practice strategy and execution for Digital Transformation leveraging the HMS framework, finishing with a visualization of the future of Digital Financial Services.
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Notes
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- 3.
Important to distinguish the cryptocurrency from the DLT technology underpinning it; here I am referring to the later, which has a life on its own in terms of use cases well beyond the crypto space.
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Eventually acquired by French Groupe BPCE.
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Fruit of the 2017 merger of D+H and Mysis.
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Know Your Customer (KYC)/Anti Money Laundering (AML), both typical banking regulatory schemes.
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Anyone can join that DLT platform; as opposed to ‘permissioned’ platforms (like Corda and Hyperledger Fabric) where there are some requirements for joining and so the participants can be scrutinized for KYC/AML.
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Exchange Traded Funds (ETF).
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Jan.2019–Jun.2020, 1-month annualized volatility for Bitcoin 50–250% and Ethereum 25–200% vs S&P500 25–100% [14].
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Unfortunately for Orange Bank, Wirecard fell into disgraced bankruptcy in 2020, a good reminder of the risk side of partnerships.
- 14.
Avg. deposit rates of Digital vs Incumbent banks (2018): (UK) 0.92% vs 0.44%; (US) 0.79% vs 0.27% [20].
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Points in time where outcomes are expected from negotiations among industry stakeholders involved in an innovation effort.
- 16.
Science-to-Data-Science (www.s2ds.org).
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BBVA website (Apr.17).
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- 19.
Although, we know that at the peak of the 2008 credit crisis some money market funds ‘broke the buck’, and the fiat currency pools that collateralizes many stablecoins function like money market funds.
- 20.
It would take longer than the age of the known universe to enumerate all the possible configurations of 3D folding for a typical protein by brute force calculation! [36].
- 21.
To simulate its computing capacity with classical bits you would need as many as the number of atoms in every human being in the planet! [37].
- 22.
When the QC can solve a problem that no classical computer can solve in any feasible amount of time.
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Gavieiro Besteiro, A. (2022). Digital Strategy. In: Strategy in Action. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-94759-0_12
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