What Causes Profitability?

August 12, 2014
/   Spotlight

Digital Insight proves that digital bankers actually drive increase engagement and profitability with their financial institution.

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Cause and Effect: If you build it, will they come?

/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Platform Shift in the Making

February 13, 2013
/   Insights

What does the banking industry as a whole have to do with Amazon, Microsoft and Apple? Just about nothing—and down the road, it may turn into a major problem (if it isn’t already). Consider...

Infographic: How to Spot a Fake Check

March 8, 2013
/   Insights

The team over at TROY pulled together an infographic on how to spot a fraudulent check. With more consumers using remote deposit capture to upload and deposit checks through their smartphones, it’s important to...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Reserve Banking: The New Radical Idea

June 5, 2014
/   Insights

Banking is by nature a very conservative industry. That’s why the current buzz over ‘reserve banking’ is so interesting. Even the term seems innocuous, but the scenario it proposes is nothing short of revolutionary....

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...


Think of it as the Bank for Humanity.  The Bitcoin protocol is the genie that has left the bottle never to be contained again.  Enormous decentralized businesses will be created out of this protocol that will change the landscape of global business forever.  A new cycle of disintermediation has begun and all existing business must adjust or they will be marginalized.

Bitcoin at its most fundamental level is a breakthrough in computer science – one that builds on 20 years of research into cryptographic currency, and 40 years of research in cryptography, by thousands of researchers around the world.  In its’ youthful history it has been attacked relentlessly and shown its’ resiliency repeatedly.

In the simplest of terms, think of a Bitcoin as currency melded with a public stock certificate of a fast growing startup. Think of it as owning a share of Facebook rather than a dollar, but you can electronically spend a bit of your share and buy a hamburger. Your remaining Bitcoin fraction can continue to appreciate even when pieces of it are spent. 

While the concept of Bitcoin may be hard to comprehend for those without a fundamental understanding of cryptography currency, bonds and banking, there are a few points that prove Bitcoin has the edge over banks.

Bitcoin is a Peer-to-Peer Network

The beauty of a peer-to-peer federated system (such as the one Bitcoin uses) is that it cannot be shut down because it does not rely on a hub.  Think Napster vs BitTorrent.  You can shut one down and not the other.

Bitcoin is an OpenSource project consisting of charitable contributions from developers who receive acknowledgement, peptides for their receptors and the knowledge that their valuable skills are contributing to something meaningful in addressing human need. In fact, Bitcoins add economic incentives to the equation making it even more compelling to create the building blocks of a new era in business.  Unlike banks, Bitcoin exists as a network that rewards users who contribute to the network by managing the Blockchain, by adding the newest Bitcoin “Block” to the distributed ledger and for providing the physical servers composing the network that processes the transactions of a global digital economy.

Bitcoin is not Subject to FIAT Manipulation  

All national currencies in circulation, issued, and managed by respective central banks are FIAT currencies.  Collectively, the banks have manipulated FIAT currencies by creating and printing additional money to create cycles of opportunity, which has led to debilitating consequences and even war. The network rules for Bitcoin are that a maximum of 21 million Bitcoins will be created.

The very fact that Bitcoin was designed to have a maximum number of bitcoins is part of the scheme that protects the Bitcoin currency from  the kind of manipulation that other FIAT currencies have experienced. The banks and especially our central bank are continuously  counterfeiting our currency and lending 10 to 300 times the actual reserves they have.  Even the reserves are nothing but government debt.

Bitcoin has Minimal Fees  

Of the world’s population, nearly 5 billion of the 7 plus billion people have no access to a competent banking system. They pay exorbitant fees (upwards of 10 to 40 percent) for simple transactions and Bitcoin holds the promise of doing the same for a micropayment sized fee.

Nearly 6 of the 7 billion people across the globe have access to mobile technology and live in countries where the local currencies are not investment grade or trustworthy. This underbanked population has every reason to feel that it would be better served by a trustworthy electronic cryptocurrency like Bitcoin. By eliminating banks as an intermediary from the consumer end of the equation it will take out the commissions and fees we are currently subjected to.

Bitcoin Has Fraud Protection 

Bitcoins manifest themselves only in digital form, as a pair of private and public keys, existing entirely as zeros and ones. To make generation of Bitcoins difficult, the Hashcash cost-function is used which allows Bitcoin blocks to be verified only by assembling the public and private key. The complexity of the design also carries with it foolproof features that prevent any duplicity in bitcoins and provide infallible protection to the integrity of the transaction between participants.

For example, unlike credit cards a Bitcoin transaction can not be fraudulent and needs no security provisions. All the fraud detection and call centers that support traditional banking and credit card processing are eliminated with Bitcoins and merchants (as well as consumers) will have exponentially less costs involved in all transactions.  Also, It would be impossible to end up with the 130 million compromised credit cards that Target and its’ customers experienced.


Andrew Flip Filipowski Silk Road HeadshotSilkRoad Equity Chairman, Andrew “Flip” Filipowski, is one of the world’s most successful high-tech entrepreneurs, philanthropists, and industry visionaries.  The former COO of Cullinet, the largest software company of the 1980′s, was also the founder and CEO of PLATINUM technology, inc. Flip grew PLATINUM into the 8th largest software company in the world at the time of its sale to Computer Associates for $4 billion dollars, the largest such transaction for a software company at the time. Upside Magazine named him one of the Top 100 Most Influential People in Information Technology. A recipient of Entrepreneur of the Year Awards from Ernst & Young and Merrill Lynch, Flip has also been awarded the Young President’s Organization Legacy Award and the Anti-Defamation League’s Torch of Liberty award for his work fighting hate on the Internet.  And proud to admit that he has a screwed up a business or two, royally.



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Brad Strothkamp


James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.