Comments for Guillaume's blog http://lebleu.org/blog For the record. Fri, 04 Jul 2008 03:15:30 +0000 http://wordpress.org/?v=2.2 Comment on The problem with banking innovation and how to fix it. by Simon Deane-Johns http://lebleu.org/blog/2008/05/19/the-problem-with-banking-innovation-and-how-to-fix-it/#comment-774 Simon Deane-Johns Wed, 02 Jul 2008 15:32:41 +0000 http://lebleu.org/blog/2008/05/19/the-problem-with-banking-innovation-and-how-to-fix-it/#comment-774 This is one reason we started Zopa. The deteriorating economics of retail banking are simply accelerating the Web 2.0 trend that has already disrupted other retail spaces. Realistically, banks can only hope to be the back office service providers for the retail financial service providers of the future. And only then if they can match their most cost-effective, reliable capabilities with the needs of truly innovative customers. This is one reason we started Zopa. The deteriorating economics of retail banking are simply accelerating the Web 2.0 trend that has already disrupted other retail spaces.

Realistically, banks can only hope to be the back office service providers for the retail financial service providers of the future. And only then if they can match their most cost-effective, reliable capabilities with the needs of truly innovative customers.

]]> Comment on How to compute someone’s Whuffie by Pierre Henri Clouin http://lebleu.org/blog/2008/06/23/how-to-compute-someones-whuffie/#comment-773 Pierre Henri Clouin Tue, 01 Jul 2008 05:35:32 +0000 http://lebleu.org/blog/2008/06/23/how-to-compute-someones-whuffie/#comment-773 Interesting assumptions on the algorithm. I wonder if you could extract an actual dataset from twitter, friendfeed and a few other websites (or even the websites that track the top users from one of these sites like twitterholic) and start playing around with it. In any case, pagerank seems like a good abstraction of whuffie. Interesting assumptions on the algorithm. I wonder if you could extract an actual dataset from twitter, friendfeed and a few other websites (or even the websites that track the top users from one of these sites like twitterholic) and start playing around with it.

In any case, pagerank seems like a good abstraction of whuffie.

]]> Comment on Developers: register your API key and start your own credit union/bank by Pierre Henri Clouin http://lebleu.org/blog/2008/06/27/developers-register-your-api-key-and-start-your-own-credit-unionbank/#comment-772 Pierre Henri Clouin Tue, 01 Jul 2008 05:05:47 +0000 http://lebleu.org/blog/2008/06/27/developers-register-your-api-key-and-start-your-own-credit-unionbank/#comment-772 Standards like OFX and FIX would provide a leg up in terms of coverage (in terms of both functionality and critical mass of compliant institutions) even though they're not as user-friendly as typical web APIs. Very interesting idea. I wonder what the killer mash up would be. If twitter fixed their reliability issue, the command line format opens up many opportunities. Standards like OFX and FIX would provide a leg up in terms of coverage (in terms of both functionality and critical mass of compliant institutions) even though they’re not as user-friendly as typical web APIs.

Very interesting idea. I wonder what the killer mash up would be. If twitter fixed their reliability issue, the command line format opens up many opportunities.

]]> Comment on Developers: register your API key and start your own credit union/bank by Robbie Wright http://lebleu.org/blog/2008/06/27/developers-register-your-api-key-and-start-your-own-credit-unionbank/#comment-771 Robbie Wright Mon, 30 Jun 2008 17:41:35 +0000 http://lebleu.org/blog/2008/06/27/developers-register-your-api-key-and-start-your-own-credit-unionbank/#comment-771 G- We've had quite a few conversations about what the specific API would look like and how something like that may work. On a high level, I strongly believe we could start an entire industry of the "out-sourced" FI, with the core processor/API being one aspect of it. I love the dedicated VC/prize idea for new software based on it although, I'm not sure the whole outsourced innovation thing would work. The way I look at it, you outsource the nitty-gritty and let your employees focus on innovation, not operational details. I'd love to chat more with you about the concept! G-
We’ve had quite a few conversations about what the specific API would look like and how something like that may work. On a high level, I strongly believe we could start an entire industry of the “out-sourced” FI, with the core processor/API being one aspect of it. I love the dedicated VC/prize idea for new software based on it although, I’m not sure the whole outsourced innovation thing would work. The way I look at it, you outsource the nitty-gritty and let your employees focus on innovation, not operational details. I’d love to chat more with you about the concept!

]]> Comment on How to compute someone’s Whuffie by lilious http://lebleu.org/blog/2008/06/23/how-to-compute-someones-whuffie/#comment-769 lilious Fri, 27 Jun 2008 13:49:15 +0000 http://lebleu.org/blog/2008/06/23/how-to-compute-someones-whuffie/#comment-769 Very interesting post. Hope to see more posts on this topic. Very interesting post. Hope to see more posts on this topic.

]]> Comment on How to compute someone’s Whuffie by Guillaume’s blog » Blog Archive » BarCampBankDallas, Whuffie and open Banking Web APIs http://lebleu.org/blog/2008/06/23/how-to-compute-someones-whuffie/#comment-767 Guillaume’s blog » Blog Archive » BarCampBankDallas, Whuffie and open Banking Web APIs Wed, 25 Jun 2008 16:39:23 +0000 http://lebleu.org/blog/2008/06/23/how-to-compute-someones-whuffie/#comment-767 [...] will evolve: I think that Experian-like services computing someone’s overall reputation (see how to compute someone’s whuffie) will develop, and as they become established brands, may end up as an input to FICO scores. [...] […] will evolve: I think that Experian-like services computing someone’s overall reputation (see how to compute someone’s whuffie) will develop, and as they become established brands, may end up as an input to FICO scores. […]

]]> Comment on The problem with banking innovation and how to fix it. by Guillaume’s blog » Blog Archive » BarCampBankDallas, Whuffie and open Banking Web APIs http://lebleu.org/blog/2008/05/19/the-problem-with-banking-innovation-and-how-to-fix-it/#comment-766 Guillaume’s blog » Blog Archive » BarCampBankDallas, Whuffie and open Banking Web APIs Wed, 25 Jun 2008 15:09:17 +0000 http://lebleu.org/blog/2008/05/19/the-problem-with-banking-innovation-and-how-to-fix-it/#comment-766 [...] I’ve talked about this before, particularly in the context of peer-to-peer lending: in the problem with banking innovation…, I explained how a loan where some of the people lending money are family members offers a [...] […] I’ve talked about this before, particularly in the context of peer-to-peer lending: in the problem with banking innovation…, I explained how a loan where some of the people lending money are family members offers a […]

]]> Comment on Business method patents: good or bad for the U.S. financial services? by Ronald http://lebleu.org/blog/2008/06/22/business-method-patents-good-or-bad-for-the-us-financial-services/#comment-765 Ronald Wed, 25 Jun 2008 03:40:24 +0000 http://lebleu.org/blog/2008/06/22/business-method-patents-good-or-bad-for-the-us-financial-services/#comment-765 I just read that story on Policico about the Texas-based DataTreasury and there seems to be uncertainty about that is going on there. Because, as Guillaume clarifies, the boundary for BMP is obscure DataTreasury has ravenously held to their patents and it has definitely decreased innovation for the financial sector. It seems like this company is using patents to bully the financial sector while being very secretive about what they are doing. The Politico story talks about an upcoming GAO review that will hopefully shine light on what is actually happening. I wasn't quite sure what to think about BMP but having seen how they work in practice, it is obvious that they are a bad idea and that they disincentivize innovation. I just read that story on Policico about the Texas-based DataTreasury and there seems to be uncertainty about that is going on there. Because, as Guillaume clarifies, the boundary for BMP is obscure DataTreasury has ravenously held to their patents and it has definitely decreased innovation for the financial sector. It seems like this company is using patents to bully the financial sector while being very secretive about what they are doing. The Politico story talks about an upcoming GAO review that will hopefully shine light on what is actually happening. I wasn’t quite sure what to think about BMP but having seen how they work in practice, it is obvious that they are a bad idea and that they disincentivize innovation.

]]> Comment on Business method patents: good or bad for the U.S. financial services? by Guillaume http://lebleu.org/blog/2008/06/22/business-method-patents-good-or-bad-for-the-us-financial-services/#comment-762 Guillaume Mon, 23 Jun 2008 16:57:44 +0000 http://lebleu.org/blog/2008/06/22/business-method-patents-good-or-bad-for-the-us-financial-services/#comment-762 @Mar the first aspect you mention (loose boundaries of BMPs and the resulting increased risk of accidental infringement) in your comment is talked about towards the end of the paper. The author uses the metaphor of a territory with fluctuating boundaries leaving visitors with uncertainty as to whether they are on the good/wrong side of the boundary. What the author says is that creates incentives to patent and disincentives to innovate. I think this is what you are describing. @Mar the first aspect you mention (loose boundaries of BMPs and the resulting increased risk of accidental infringement) in your comment is talked about towards the end of the paper. The author uses the metaphor of a territory with fluctuating boundaries leaving visitors with uncertainty as to whether they are on the good/wrong side of the boundary. What the author says is that creates incentives to patent and disincentives to innovate. I think this is what you are describing.

]]> Comment on Business method patents: good or bad for the U.S. financial services? by Mar http://lebleu.org/blog/2008/06/22/business-method-patents-good-or-bad-for-the-us-financial-services/#comment-761 Mar Mon, 23 Jun 2008 15:39:00 +0000 http://lebleu.org/blog/2008/06/22/business-method-patents-good-or-bad-for-the-us-financial-services/#comment-761 An often overlooked result of BMPs, especially in the financial sector, is the disincentives they create for new companies to enter markets and, inversely, the patent trolls they help to create. BMPs have the unfortunate effect of allowing seemingly obvious processes to be protected--this can create a prohibitively expensive barrier to new companies entering new industries. If companies do not double check each and every seemingly obvious process, they could very well end up infringing. The other effect is to create patent trolls. Companies, especially in the immediate aftermath of State Street, had every incentive in the world to grab as many BMPs as possible and then use those to become a company whose only business lies in litigating against "infringers." An excellent example is the company DataTreasury out of Plano, TX. This company was once involved in bio-technology, but immediately after State Street nabbed several very generically worded business method patents on the process of scanning checks electronically. After Congress passed a law in 2003, The Check 21 Act, which sought to make the entire financial industry switch from paper check processing to electronic processing and transfer, DataTreasury pulled out their patents, fired 98 of their 100 employees, hired the largest law firm in Texas, and ever since their only business has been in suing banks who are trying to comply with Congress' wishes. I bring up this example because 1) it is a textbook case of the problems with BMPs in the financial sector, 2) Congress recently requested a GAO review of DataTreasury. This is a clear sign DC is considering acting at least on this specific case. There was a Politico article a couple of weeks ago on this review: http://www.politico.com/news/stories/0608/10808.html#replyform Anyway, just wanted to provide a different angle on the issue An often overlooked result of BMPs, especially in the financial sector, is the disincentives they create for new companies to enter markets and, inversely, the patent trolls they help to create. BMPs have the unfortunate effect of allowing seemingly obvious processes to be protected–this can create a prohibitively expensive barrier to new companies entering new industries. If companies do not double check each and every seemingly obvious process, they could very well end up infringing.

The other effect is to create patent trolls. Companies, especially in the immediate aftermath of State Street, had every incentive in the world to grab as many BMPs as possible and then use those to become a company whose only business lies in litigating against “infringers.” An excellent example is the company DataTreasury out of Plano, TX. This company was once involved in bio-technology, but immediately after State Street nabbed several very generically worded business method patents on the process of scanning checks electronically. After Congress passed a law in 2003, The Check 21 Act, which sought to make the entire financial industry switch from paper check processing to electronic processing and transfer, DataTreasury pulled out their patents, fired 98 of their 100 employees, hired the largest law firm in Texas, and ever since their only business has been in suing banks who are trying to comply with Congress’ wishes. I bring up this example because 1) it is a textbook case of the problems with BMPs in the financial sector, 2) Congress recently requested a GAO review of DataTreasury. This is a clear sign DC is considering acting at least on this specific case.

There was a Politico article a couple of weeks ago on this review: http://www.politico.com/news/stories/0608/10808.html#replyform

Anyway, just wanted to provide a different angle on the issue

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