Sustainable Teller Machines (STMs) spell the beginning of the end of the legacy banking system.
The legacy banking system was designed to bring consumers to their brick and mortar institutions.
Fintech innovations work to protect that legacy of financial institutions.
In contrast, TechFin isn’t bound by any legacy. It’s primarily driven by technological possibilities in innovating “all things financial” (ATF) any which way, making it purely a customer & technology centric approach.
Understanding FinTech vs TechFin
First things first. Without understanding the backdrop that’s creating the concept of Sustainable Teller Machines, fathoming the STM innovation may be a bit challenging. So here’s a look at the banking innovation landscape to examine the philosophies and approaches of Fintech innovators vis-a-vis TechFin innovators.
Techfin firms start with technology and wonder how that can be used for commerce and trade. Alternatively, fintech firms start with existing trade structures and wonder how to make them cheaper and faster with technology. I liken it to fintech firms are making faster horses whereas techfin firms are working with airplanes. — Chris Skinner
The Skinner quote makes the distinction clear. It also clarifies why:
STM cannot be a fintech innovation.
Fintech innovators can never set their own legacy-dismantling ball rolling. But the leaders of the techfin revolution perhaps can.
STM: A Sustainable Technological Convergence
Our previous blog post on the subject matter concluded with:
A 2018 patent application, provided the very first disclosure of a Sustainable Teller Machine (STM) that almost delivers ATF (All Things Financial):
“the apparatus is an automatic teller machine (ATM) for last mile delivery of financial and profit making algo-sharing, algo-trading and financial instrument exchange services to remote end-users who do not have a computer device or chose not to use a personal computer device.”
the participating peers are extremely impoverished individuals or their cooperatives with no capital or trading experience, and their tradable financial instruments or assets are acquired through 100% secured zero-loss financing (ZLF) nano-loans or micro-loans not less than $100 and not more than $1000, under terms that the loaned principle is exclusively used for trading but cannot be withdrawn, and the trading profits are withdrawable only to the extent that they are over and above estimated loan interest accrued.
In essence, apart from being blockchain-secured device, STM is a convergent device integrating diverse ATF services that are traditionally beyond the scope of ATMs or even banks, such as:
- currency exchange,
- algorithmic trading,
- crowdfunding, so on and so forth.
STM can even accommodate CRM (customer relationship management) services such as loyalty programs, which we previously suggested could be a good source of creating ideal currency.
Essentially STMs can potentially solve the first and last mile problems of the underbanked or the unbanked population at every remote corner of the world, and render legacy banking system redundant.
Moreover, by integrating ZeroLoss AlgoShare tech, STM implements an income generating interface that provides livelihood to the most impoverished, unskilled and underprivileged, irrespective of their sex, color, age and financial or social status.
What is technological convergence?
A convergence is when two or more distinct things come together. Technology convergence is when different forms of technologies cohabitate in a single device, sharing resources and interacting, creating new technology and convenience.
As illustrated above, STM is a teller machine that cohabitates diverse financial technologies within a single interface and takes it to any remote location where the consumer is.
What is sustainability?
The original definition of sustainable development is usually considered to be:
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” .
There may be various ways to define sustainability, but for our purpose it is as defined by the World Commission on Environment and Development:
“A process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations”
Taking ATF To Consumer Locations
In the current system all roads ultimately lead to the traditional bank. For ATF (All Things Financial) there’s complete dependency on brick & mortar legacy banking.
On the contrary STM delivers ATF at any remote location convenient to the consumer.
More Reasons For STM’s Sustainability
According to The Neilson Report roughly six billion plastic payment cards are manufactured each year. Add the umpteen categories of gift card, ID cards, affiliation cards to the global plastic cards kitty, and the stats get staggering.
With powerful eco-friendly biometric authentication technology available today, use of plastic for authentication is completely meaningless, economically and environmentally counter productive, and negates sustainability.
For all the above reasons STMs are sustainable as they can immensely contribute in many ways to the global efforts to “end poverty, protect the planet, and ensure prosperity for all,” and in the process render legacy banking system redundant.
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