Kan entreprenörer och tekniken utmana

Bankerna?

Tieto Bankdagen – Juni 2014

Dr. Robin Teigland Stockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland @RobinTeigland

”Bitcoin has made me interested in issues like finance and money – things that I never thought about before. Now I am really curious and questioning why

things are the way they are in the finance world….and wondering what

can I do to change them.” - Bitcoin 2014 Conference Attendee

In just a few years in Sweden alone…Company Founded BusinessKlarna 2005 E-commerce payment servicesMyLoan 2006 Loan brokerTrustly 2008 Online paymentsTrustBuddy 2009 P2P lendingFundedByMe 2011 Crowdfunding, crowd equityTink 2012 Personal financeSafello 2013 Cryptocurrency exchangeKnC Miner 2013 Cryptocurrency mining equipment

?? 2014 ?

Share of wallet is rapidly shrinking

Nordic BanksPay, Save,

Lend, Insure

Nordic Entrepreneurs

International Entrepreneurs

Increasing competition for investors through crowdfunding

Massolution 2013

Millions of dollars 2015eUSD 17 bln

Crowd equity rising

And in the US and UK…

•P2P lending

•>USD 3.8 bln in personal loans since 2007

• USD 750 mln growth each quarter

•Now offering business loans

•Strategic alliance with Union Bank

From Africa to Eastern Europe to ?

The future?

Facebook + banking license?

Valuecreation

People• “Net generation”• 24x7 “mobile” workforce• Knowledge via MOOCs

Technology • Broadband• Mobile hardware • ICTs• AI• Robotics

Open Source • Software

• Hardware

Convergence of…..

Finance• P2P lending/microfinance • Crowdfunding/equity• Cryptocurrencies

Institutions

Emergent Collective vs

E.g., Central Bank~ Long-standing financial

institutions and regulations

E.g., Bitcoin Community ~ Emergent collective of users across globe connected through internet

Challenges to institutions?

Teigland, Yetis, Larsson, 2013http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707

Challenging the fiat money

system?

In just five short years… Bitcoin

•Open source project in Jan 2009 by “Satoshi Nakamoto”

•Developed by self-organizing community of 1000s strangers across globe

•Approx USD 8.4 bln in circulation (June 2014) and 70,000 daily transactions

•SEK 55 bln of Bitcoin vs Swedish Crown of 91 bln SEK

Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707

Cryptocurrencies reshape global finances

Currency Code YearEst. Founder(s) Active Website PoW PoS

Bitcoin BTC or XBT 2009 Satoshi Nakamoto (pseudonym) Yes N/A Yes No

Ripple XRP 2013 Chris Larsen & Jed McCaleb Yes ripple.com No No

Litecoin LTC 2011 Charles Lee Yes litecoin.org Yes No

Peercoin PPC 2012 Sunny King (pseudonym) Yes peercoin.net Yes Yes

Dogecoin DOGE 2013 Jackson Palmer& Billy Markus Yes dogecoin.co

m

Yes No

Namecoin NMC 2011 N/A Yes dot-bit.org Yes No

Mastercoin MSC 2013 J. R. Willett Yes mastercoin.org

No No

Primecoin XPM 2013 Sunny King (pseudonym) Yes primecoin.or

g

Yes No

Rise of local currencies

Bitcoin – so much more than a “coin”

From dumb to smart moneyUnderlying Bitcoin protocol holds real transformative powerTransfer property rights (e.g., shares, certificates, digital money) fast, transparent and very securely.

http://thenextweb.com/insider/2014/02/15/bitcoin-platform-currency/

Changing regulations

How should banks react?

“Keep your enemies close…”

Remember.. you can’t control networks

If you try to stop this, something else will rise and take its place? What will this be?

What does the future hold?• Will we see a parallel to other

industries, e.g., music, software, newspaper, books?

• Will “trusted” third parties no longer be needed since trust can be mediated through networks, which are self-regulating?

• What basic assumptions will no longer hold, e.g., do we need money?

The genie is out of the bottle….

"...when the rate of change outside an organization is greater than the rate of

change inside, the end is near...." - Jack Welch

Some questions…

•How to learn about new developments such as crowdfunding, P2P lending, cryptocurrencies, mobile payment systems?

•How best to engage and with which developments?

•How to turn threat into opportunity?

•How to let go of control…..

Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

@RobinTeigland

Photo: Lindholm, Metro

Photo: Nordenskiöld

If you love knowledge, set it free…

“We ain’t seen nothin’ yet….”