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Fasanara Bi-Weekly Digest



Banks Are Stupid, Coronavirus Removes Cash, Firms 100% Loans, 6 Al Reasons and Other Topics.

Everyone happy Monday!

In this post:

  • Coronavirus Is Speeding Up The Disappearance Of Cash

  • Coronavirus Chills Indonesia’s Red-Hot Fintech Start-Ups

  • Assessing Creditworthiness In A Time Of Radical Uncertainty

  • Six Reasons Why We Haven't Seen Full AI Adoption

  • 100% State-Backed Loans For Small Firms

  • Podcast: ‘I’m Fed Up With People Saying Banks Are Stupid’.


Coronavirus Is Speeding Up The Disappearance Of Cash.

The European Commission vice-president for financial services recently tweeted “Time to swap your coins for payment cards — safer for containing coronavirus.” Are we about to abandon a practice that dates back some 7,000 years to Mesopotamia?

The coronavirus pandemic, and our efforts to cut disease transmission, is forcing us to ask whether we have outgrown the need to carry and move money in physical form. We already have the technology to pay and transact in a purely digital fashion and use highly secure biometric authentication at the point of transaction. If central banks around the world created digital currencies, each person could have a segregated account. This idea is gathering steam.

Coronavirus Chills Indonesia’s Red-Hot Fintech Start-Ups.

Investors from China have in recent years poured funds into start-ups in Indonesia, particularly those in the fast-growing $5.4bn P2P lending industry. But cracks have appeared since strict quarantine measures were imposed earlier this month across cities including the capital Jakarta. A government recommendation that all financial institutions defer payments on consumer and business loans has compounded problems. Signs of rising delinquencies in Indonesia’s online lending sector could also prompt further scrutiny of Chinese operators in the country, which were battling a perception they were bypassing regulations before coronavirus. A 2018 report from Indonesia’s Financial Services Authority found half of the 227 unlicensed P2P lenders in the country originated from China. 

Assessing Creditworthiness In A Time Of Radical Uncertainty.

To minimise the uncertainty caused by the crisis and keep capital flowing to an economy that needs it, the market will inevitably be driven faster towards the automated and data-driven credit assessment models fintech offers. But how can fintech help the market adapt and assess creditworthiness at a time of uncertainty?

In the first of a two-part series, Josh Cook takes a deep dive into what fintech lenders can and can’t do in a time of crisis.

Six Reasons Why We Haven't Seen Full AI Adoption.

We all know AI is the future of business. After all, manpower simply isn’t fast enough to keep up with the pace of consumer demand. That said, there’s a big difference between knowing AI is the future and actually implementing AI within your business successfully. That latter part—AI adoption—is where many companies are finding themselves stuck.

No one said digital transformation would be easy—but you are not alone if you assumed AI adoption would be a cakewalk. Yes, AI is meant to make your business life easy. But real-life conditions don’t always cooperate. If your company has been less than successful in its AI efforts, you are not alone. This article sets out a few reasons why AI adoption is failing to reach full-penetration in businesses around the globe.

100% State-Backed Loans For Small Firms.

Small businesses will be able to apply for a 100 per cent government-backed loan of up to £50,000 to help them survive the coronavirus pandemic.

The announcement of the new scheme follows calls from lending industry stakeholders for a 100 per cent guarantee on loans through the coronavirus business interruption loan scheme (CBILS), rather than the current level of 80 per cent. Critics argued that leaving lenders with 20 per cent of the risk has slowed down the process of channelling funds to small firms.

The Bounce Back Loan scheme is a new fast-track finance scheme for smaller firms that will enable them to access cash in a matter of days. No repayments will be due during the first 12 months.

100% State-Backed Loans For Small Firms.

Chris Skinner, the author of "Doing Digital," defends banks' response to the coronavirus crisis and discusses why he thinks the tech giants won't be able to take market share away from traditional financial institutions.


Thank you for the time!

Stay at home & save lives.


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