Nguyen Thu Nga is a Chicago Boothie. She runs the Innovation Hub in Hanoi. She sent me a link to a fin-tech innovation challenge they are hosting. Fin Tech is something that scales across borders. The problems with scaling generally are in regulation. As we have seen across the world, demand curves slope down. People are people. Read the Economics of a POW Camp and you will see how finance and economics run through the human species. While there are cultural differences there are parts of us that are all the same. I think a large part of economics and finance shows that and it’s one of the reasons I love fin tech innovation.
Yesterday at the Numo Fin Tech Challenge that I volunteered at, at least 3 of the presenters were trying to solve problems for the unbanked, uninvested, or people that don’t have access. This is important. People need to be able to participate if they are going to realize the benefits of capitalism. I alluded to this when I wrote about why we don’t teach basic finance in school. The other thing about yesterday’s crowd is it was made up of people from all over the world. I love that.
The developing world will develop faster with good fin tech. I think one of the great promises of things like blockchain is the fact that it creates a trust network. We trust people we get familiar with. If we aren’t familiar, we hire accountants, lawyers, and institute all sorts of regulations, checks and balances and fear. It costs us and introduces barriers which bring inefficiency to markets.
What happens in a world where I do business across borders virtually with people I don’t know? Answer, blockchain. It has the potential to get rid of all of the inefficiencies.
If you are a startup, this might be an opportunity for you to get a foothold on some customer acquisition. That is the best validation in Fin Tech.