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Phin Upham speaks at Global Conference about The Future of FinTech

June 4, 2015 by · Leave a Comment 

By Phin Upham

Phin Upham was joined by a panel of financial experts from various capital groups and banks to discuss the future of financial tech. The current climate isn’t sustainable. Big banks are servicing the equivalent of 40-60% of the population, which ignores a large chunk of people that could potentially join the middle class.

There are several challenges that make adapting to this climate difficult for big banks, and smaller startups may be better suited to tackle these very large problems.


As businesses scale, the costs of doing business remain the same thanks to the costs of moving and storing money. When agile financial startups take the lead, the costs to move money should reduce as more specified methods catch on. Wells Fargo, a large bank capable of any kind of transaction, won’t be able to compete with a company that just does short-term loans.


Banks can’t compete because they don’t have the flexibility. If big banks adjust interest rates, they lose substantial sums of money on their balance sheets. That hurts their long term stability and puts them in violation of regulations that require certain amounts of cash on hand.


Another problem that Phin Upham identified is the consumer’s need for money management. Overdraft fees, for instance, are killing the bottom 95% of income earners. That form of interest can virtually go away if consumers had shorter term loans, reasonable interest rates and a plan to pay back their debts. Big Banks can’t provide those services, at least not at the individualized level.

About the Author: Phin Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Phin Upham website or Facebook page.

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