Money and the financial sector are hugely important for all areas of our lives. It is therefore no surprise that the financial sector has produced numerous digital innovations.
In this issue of Trend Stories, we present a few of these trends in the financial sector.
In order to make financial decisions that are in your own long-term interests, you need to understand basic financial concepts such as interest rates, inflation and financial risks. However, it has been proven that many people do not have sufficient financial literacy.
To teach students basic financial concepts as early as possible, the US financial services provider Ally developed the world "Fintropolis" for the video game Minecraft. In "Fintropolis", Minecraft players learn how to earn money, pay taxes, budget, build credit, manage debt and even invest. In addition, "Fintropolis" provides playful information about different career paths.
To the virtual financial world
More and more companies are committing to ensuring that their supply chains are free from exploitation, corruption and environmental degradation. However, this undertaking is made more difficult by the fact that supply chains are not transparent and suppliers often have no incentive to produce ethically and sustainably.
On its Halotrade platform, the company Halo is now using the advantages of the financial sector to create incentives for the ethical behavior of suppliers.
In return, suppliers gain access to favorable working capital if their production conditions meet certain sustainability standards. In this way, ethical business management becomes a competitive advantage.
The use of blockchain technology makes it possible to clearly verify whether the standards are actually being met. If the predefined requirements are met, the suppliers' invoices are automatically settled using smart contracts.
Halotrade thus automates all aspects of trading, financing and certification across the entire supply chain. This helps to ensure that ESG strategies are implemented decentrally at all points in the supply chain.
To the ethical supply chain platform
Who gets a loan is usually determined by automated credit scoring procedures. However, the current models often overlook worthy borrowers. Minorities and young people with few years of credit and therefore lower credit scores are at a particular disadvantage.
The US software company ZestAI has therefore developed ZAML Fair - an AI algorithm designed to reduce discrimination when granting mortgage loans. By using more extensive data sets and better mathematics, ZAML Fair's models make borrowers visible who are overlooked by the usual credit scoring procedures.
Until now, private individuals have had to rely on banks to store money and use financial services. With the advent of decentralized digital technologies such as blockchain, private individuals now have access to financial services even without a financial institution. In addition to greater control over their own money, this also allows higher returns to be generated as the costs of the intermediary are eliminated.
One provider of such a decentralized finance platform is the American mortgage lender Gelt Holdings. Customers can use the decentralized finance platform gelt.finance to lend their money against interest via blockchain. The capital is converted into digital dollars (stablecoins) via the Gelt platform and lent in the form of the cryptocurrency Ethereum. gelt.finance acts as an intermediary to organize the smooth process of exchanging and lending money.
Thank you for your interest. For questions and feedback, feel free to contact us at hallo@mediaman.de or check out our Instagram or LinkedIn profile.
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