Happy Tuesday, Fellow Fintechers! We’re just back from a weekend trip to the Lone Star State to visit with our friends at Entoro, who are doing some innovative work on the security token and investment platform front, and sample some outstanding Texas BBQ at the big international competition there this past weekend. It was Texas, so it wasn’t just fun – it was BIG fun!

Today, we’re keeping it short and sweet for you:

We start with a look at the coronavirus outbreak’s effects on fintech– from cancelled industry conferences, to bitcoin volatility (but that’s nothing new), to a slowdown in production of crypto mining rigs, and more. It’s definitely having an effect on the sector.

Next up is a look at the questions an RIA needs to answer when upgrading their tech stack and the potential implications it could have to the existing infrastructure if not properly implemented. These are big questions for advisors, but we can’t stress enough the importance of getting your tech stack set up right. We also have a new 3 Questions interview John Sarson from Sarson Funds. According to their website: “Sarson Funds is an independent provider of blockchain technology and cryptocurrency marketing and educational services focusing on the financial professional community and their clients.” Great insight. 

Last week we learned that the SEC has quashed yet another bitcoin ETF – this time from Wilshire Phoenix. Boys, boys, boys – when will you learn? The SEC is NOT going to push through ANY bitcoin ETFs anytime soon because there is not enough liquidity in the sector to ensure that there won’t be major price manipulation with the daily pricing offered by ETFs. Won’t happen. Remember the definition of insanity? Doing the same thing over and over again but expecting different results. 

Finally, we have three stories that talk about the billions that can be made in fintech: One on the latest $5.5 billion valuation on one of my favorite fintechs of all time, the London digital bank Revolut. We also learn that investing app M1 finance has hit $1 billion AUM in just 41 months. And finally, Intuit, the firm behind TurboTax, has announced it will acquire fintech Credit Karma for $7.1 billion, giving Credit Karma founder Ken Lin, who launched the firm in 2007, a cool $1 billion windfall. It looks to me like there’s money to be made in fintech for the right ideas.

Read up and be in the fintech know!

Yours in Fintech,
Cindy Taylor