30 November 2016: Traditional banks underestimate fintech

fintechIn today’s Het Financieele Dagblad, there is an interview with fintech guru Chris Skinner. He thinks that major banks are moving much too slow with respect to fintech: “They have no idea of what lies ahead and heavily underestimate the impact of newcomers in the markets. Traditional banks are still led by people who think in terms of offices and people instead of data, software and services”. According to Skinner, fintech will not break big banks in the end. Because big banks have customers, trust and money, they will be able to take over fintech startups.
To These Dutch Guys, this all makes sense. Technology makes it possible to deliver people financial services, which are better, smarter and cheaper. So far, traditional banks have not shown a hint of a move toward those types of services. With this blog, These Dutch Guys hope to act as a wake-up call to major banks and investment funds and to show what innovative approaches, data analysis and social media are capable of.

white-chapel-logo-smallMarkets were somewhat mixed yesterday. There was a positive vibe among investors because of a continuing rebound of corporate profits, but there were also some worries over sliding oil prices. Nevertheless, all major US indices were able to close with small gains, ranging from +0.12% for the Dow to +0.21% for the NASDAQ. Volatility eased and the VIX dropped below 13 points at 12.90. Our XIV ETNs made a gain: +0.79%. Return for the year for our model is now just above 320%. Return for the quarter remains also healthy at 37%.
White Chapel did not give a signal at the end of yesterday’s trading session. Our model is not expecting volatility to rise substantially in the short term.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$42,026

+320.26%

+320.26%

+37.2%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 389%.

ta_v05-small-invThe Netherlands are quite famous for their innovations in agriculture. The province in which Tim and René live, North Brabant, is quite notorious for intensive stock-farming. To put this in perspective: in North Brabant live 2.5 million people, together with 29 million chickens, 6 million pigs and 0.7 million cows. As you can understand, the agriculture sector has been a dominant party in the province for many centuries. Farmers do not like wet feet. Because wet meadows and fields are bad for their stock and crop. As a result, they want to drain rain water as quickly as possible. Almost all streams and brooks in North Brabant have been straightened in the past 150 years. Fortunately (?), climate change has put an end to that policy. Watercourses are once again allowed to meander through the landscape in order to slowdown the speed of water drainage. This should absorb peak flows to prevent lands and cities downstream from flooding.
During one of his walks, Tim came across a piece of land, which has stood the test of time. For many years, it was an anachronism, but now it is fully up-to-date with modern times. And most of all: it is very beautiful!

meander