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These were the biggest developments in the global fintech ecosystem over the last 12 months

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This is a preview of a research report from Business Insider Intelligence,  Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

mobile banking features

In recent years, we've seen a ballooning of activity in fintech — an expansive term applied to technology-driven disruptions in financial services. And 2018 has been no different, with fintechs' staggering influence on the market evidenced by record funding levels for the industry — by Q3 2018, overall funding was already up 82% from 2017’s total figure, according to CB Insights.

Additionally, this year marked a watershed moment for the industry, with the once clear distinction between fintechs and financial services proper now blurred significantly. Virtually every incumbent financial institution (FI) is now looking inward and engaging in an innovation drive, spurred on by competition from fintechs. As such, incumbents are now actively investing in, acquiring, and collaborating with their fintech rivals.

In this report, Business Insider Intelligence details recent developments in fintech funding and regulation that are defining the environment these startups operate in. We also examine the business model changes being employed among different categories of fintechs as they strive to embed themselves further in mainstream finance and prove sustainability. Finally, we consider which elements of the fintech industry are rapidly rubbing off on incumbent financial services providers, and what the future of fintech will look like.

The companies mentioned in this report are: Funding Circle, GreenSky, Transferwise, Ant Financial, Nubank, Cellulant, Oscar Health, Stripe, One97, UiPath, LianLian Pay, Wacai.com, Gusto, Toast, PingPong, Flywire, Deposit Solutions, Root, Robinhood, Atom, N26, Revolut, OneConnect, PolicyBazaar, WeCash, Zurich, OneDegree, Dinghy, Vouch Insurance, Laka, Cleo, Ernit, Monzo, Moneybox, Bud, Tandem, Starling, Varo Money, Square, ING, Chase, AmEx, Amazon, Monese, Betterment, Tiller Investments, West Hill Capital, Square, Ameritrade, JPMorgan, eToro, Lendy, OnDeck, Ripple, Quorom, Chain, Coinbase, Fidelity, Samsung Pay, Google Pay, Apple Pay, Bank of America, TransferGo, Klarna, Western Union, Veriff, Royal Bank of Scotland, Royal Bank of Canada, Facebook, ThreatMetrix, Relx, Entersekt, BNP Paribas, Deutsche Bank, Gemalto, Lloyd's of London, Kingdom Trust, Aviva, Symbility LINK, eTrade, Allianz, AXA, Broadridge, TD Bank, First Republic Bank, BBVA Compass, Capital One, Silicon Valley Bank, Credit Suisse, Ally, Goldman Sachs.

Here are some of the key takeaways from the report:

  • Fintech funding has already reached new highs globally in 2018, with overall funding hitting $32.6 billion at the end of Q3.
  • Some new regions, including South America and Africa, are emerging on the fintech scene.
  • We've seen considerable scaling in older corners of the fintech ecosystem, including among neobanks and alt lenders.
  • Some fintechs, including a number of insurtechs, have dipped into new markets to escape heightened competition.
  • Emergent areas like blockchain and distributed ledger technology (DLT), as well as digital identity, are gaining traction.
  • Many incumbents are undertaking business transformations that aim to reimagine everything from products and services to front-end systems and back-end processes.

 In full, the report:

  • Details the funding and regulatory landscape in the US, Europe, and Asia.
  • Gives an overview into a number of fintech segments and how they've changed over the past year.
  • Discusses how incumbents are reacting to fintechs in order to stay relevant in the changing financial services sector.
  • Evaluates what the future of fintech will look like and what trends to look out for in the coming year.

Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to:

This report and more than 250 other expertly researched reports
Access to all future reports and daily newsletters
Forecasts of new and emerging technologies in your industry
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SEE ALSO: How the largest US financial institutions rank on offering the mobile banking features customers value most

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How the Internet of Things will transform consumerism, enterprises, and governments over the next five years

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  • The Internet of Things is fueling the data-based economy and bridging the divide between physical and digital worlds.
  • Consumers, companies, and governments will install more than 40 billion IoT devices worldwide through 2023.
  • The next five years will mark a pivotal transformation in how companies and jurisdictions operate, and how consumers live.

Being successful in the digital age doesn’t just require knowing the latest buzzwords; it means identifying the transformational trends – and where they’re heading – before they ever heat up.

IoT Forecast BookTake the Internet of Things (IoT), for example, which now receives not only daily tech news coverage with each new device launch, but also hefty investments from global organizations ushering in worldwide adoption. By 2023, consumers, companies, and governments will install more than 40 billion IoT devices globally. And it’s not just the ones you hear about all the time, like smart speakers and connected cars.

To successfully navigate this changing landscape, individuals and organizations must understand the full extent and functionality of the “Things” included in this network, the key drivers of each market segment, and how it all relates to the work they do every day.

Business Insider Intelligence, Business Insider’s premium research service, has forecasted the start of the IoT’s global proliferation in The IoT Forecast Book 2018— and the next five years will be transformational for consumers, enterprises, and governments.

  • Consumer IoT: In the US alone, the number of smart home devices is estimated to surpass 1 billion by 2023, with consumers dishing out about $725 per household — a total of over $90 billion in spending on IoT solutions.
  • Enterprise IoT: Comprising the most mature segment of the IoT, companies will continue pouring billions of dollars into connected devices and automation. By 2023, the total industrial robotic system installed base will approach 6 million worldwide, while annual spending on manufacturing IoT solutions will reach about $450 billion.
  • Government IoT: Governments globally are ushering in IoT devices to spur the development of smart cities, which would be equipped with innovations like connected cameras, smart street lights, and connected meters to provide a real-time view of traffic, utilities usage, crime, and environmental factors. Annual investment in this area is expected to reach nearly $900 billion by 2023.

Want to Learn More?

People, companies, and organizations all over the world are racing to adopt the latest IoT solutions and prevent growing pains amidst a technological transformation. The IoT Forecast Book 2018 from Business Insider Intelligence is a detailed three-part slide deck outlining the most important trends impacting consumer, enterprise, and government IoT — and the key drivers propelling each segment forward.

Representing thousands of hours of exhaustive research, our multipart forecast books are considered must-reads by thousands of highly successful business professionals. These informative slide decks are packed with charts and statistics outlining the most influential trends on the leading edge of your industry. Keep them for reference or drop the most valuable data into your own presentations to share with your teams.

Whether you’re newly interested in a topic or you already consider yourself a subject matter expert, The IoT Forecast Book 2018 can provide you with the actionable insights you need to make better decisions.

 

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MSNBC host says the US is facing another government shutdown because right-wing media 'scared' Trump

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Screen Shot 2018 12 21 at 5.31.15 PM

  • MSNBC host Ari Melber suggested President Donald Trump dove head-first into a government shutdown because he "got scared" amid pressure from high-profile conservative personalities.
  • Conservative-leaning personalities have widely excoriated Trump in recent weeks for failing to deliver on his promise to build a wall on the US-Mexico border.
  • Melber's remarks come amid a partial government shut down on Friday, after Trump's $5 billion demand in federal funding for the wall is expected to fall short of enough Senate votes.

MSNBC host Ari Melber suggested President Donald Trump dove head-first into a government shutdown because he "got scared" amid pressure from high-profile conservative personalities.

"Donald Trump got scared, he got shook, because of the right wing media talking to him and his base," Melber said during MSNBC's "The Beat with Ari Melber" on Friday.

Melber's remarks come amid a partial government shutdown on Friday, after Trump's demand for federal funding for a US-Mexico border wall led to gridlock in Congress.

On Thursday, Trump abruptly reneged his support for a bipartisan short-term funding bill that did not include funds for the wall, forcing House lawmakers to vote and pass a government funding bill that included $5.7 billion in wall funds. Both chambers of Congress adjourned on Friday night without a spending deal, making a midnight EST shutdown inevitable.

Conservative-leaning personalities, including Fox News hosts, author Ann Coulter, and radio host Rush Limbaugh, have widely excoriated Trump in recent weeks for what they described as kowtowing to Democrats and failing to deliver on his campaign promises.

Conservative provocateur Ann Coulter recently described Trump as a "gutless president in wall-less country," and has passive-aggressively made periodic updates of the border wall's construction:

Melber theorized it was this hardline conservative base, who have recently criticized his other controversial policy decisions, that pushed Trump to force his hand.

In addition to wall funding, conservative-leaning media personalities have lambasted Trump for his decision to withdraw all US ground forces from Syria, and questioned the circumstances of Defense Secretary Jim Mattis' abrupt resignation.

"It was this fear, though, from the right-wing media base, that ... forced Trump into this whole mess," Melber said.

In a candid meeting in front of cameras on December 11, Trump told Democratic leaders Nancy Pelosi and Chuck Schumer he was "proud to shut down the government for border security" and claimed he would not blame their party in the event of a shut down.

Trump failed to deliver on that claim when he announced on Friday that "Democrats now own the shutdown!"

SEE ALSO: MERRY CHRISTMAS!: A government shutdown is all but certain after Trump's border-wall demands leave Congress in gridlock

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'

Banks can no longer prioritize stringent identity verification over good customer experience

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Large FIs tech investments NEWThis is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

The way incumbent banks onboard and verify the identities of their customers online is inconvenient and insecure, resulting in lowered customer satisfaction and loyalty, and security breaches leading to compensation payouts and legal costs.

It’s a lose-lose situation, as consumers become disgruntled and banks lose business. The problem stems from the very strict verification standards and high noncompliance fines that banks are subject to, which have led them to prioritize stringency over user experience in verification. At the same time, this approach doesn't gain banks much, since the verification methods they use to remain compliant can actually end up compromising customers' personal data.

But banks can't afford to prioritize stringent verification at the cost of user experience anymore. Onboarding and verification standards are increasingly being set by more tech-savvy players within and outside their industry, like fintechs and e-retailers. If banks want to keep customers loyal, they have to start innovating in this area. The trick is to streamline verification for clients without compromising accuracy. If banks manage to do this, the result will be happier and more loyal customers; higher client retention and revenue; and less spending on redundant checks, compensation for breaches, and regulatory fines.

The long-term opportunity such innovation presents is even bigger. Banks are already experts in vouching for people’s identities, and because they’re held to such tight verification standards, their testimonies are universally trusted. So, if banks figure out how to successfully digitize customer identification, this could help them not only boost revenue and cut costs, but secure a place for themselves in an emerging platform economy, where online identities will be key to carrying out transactions. 

Here are some of the key takeaways from the report:

  • The strict verification standards that banks are held to have led them to create onboarding and login processes that are painful for clients. Plus, the verification methods they use to remain compliant can actually end up putting customers' personal data at risk. This leaves banks with dented customer satisfaction, as well as security breaches and legal costs.
  • Several factors are now pushing banks to attempt to remedy the situation, including a tougher regulatory environment and increasing competition from agile startups and tech giants like Google, Amazon, and Facebook, where speedy onboarding and intuitive service is a given.
  • The trick is to streamline verification for clients without compromising accuracy, something several emerging technologies promise to deliver, including biometrics, optical character recognition (OCR) technology, cryptography, secure video links, and blockchain and distributed ledger technology (DLT). 
  • The long-term opportunity such innovation presents is even bigger. Banks are already experts in vouching for people’s identities, so if they were to figure out how to successfully digitize customer identification, this could help them secure a valued place, and relevance, in a modernizing economy.

In full, the report:

  • Looks at why identity verification is so integral to banking, and why it's becoming a problem for banks.
  • Outlines the biggest drivers pushing banks to revamp their verification methods.
  • Gives an overview of the technologies, both new and established but repurposed, that are enabling banks to bring their verification methods into the digital age.
  • Discusses what next steps have to happen to bring about meaningful change in the identity verification space, and how banks can capitalize on their existing strengths to make such shifts happen.

Subscribe to an All-Access pass to Business Insider Intelligence and gain immediate access to:

This report and more than 250 other expertly researched reports
Access to all future reports and daily newsletters
Forecasts of new and emerging technologies in your industry
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MERRY CHRISTMAS!: Government enters shutdown after Trump border-wall demands leave Congress in gridlock

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  • The federal government entered a partial shutdown at midnight EST after the House and Senate adjourned without a spending deal on Friday night.
  • The shutdown is the result of a last-minute flip-flop by President Donald Trump on his demands for money for a US-Mexico border wall.
  • Trump's demands led to gridlock in Congress on a broader funding bill.
  • The shutdown will force 800,000 federal workers to go without pay for as long as the government remains closed.
  • In a joint statement issued after the shutdown officially took effect, the Democratic Speaker-designate Nancy Pelosi and Senate Democratic leader Chuck Schumer said, "President Trump has said more than 25 times that he wanted a shutdown and now he has gotten what he wanted."

The federal government entered a partial shutdown as the House and Senate adjourned without a federal-spending deal on Friday, hours before a midnight EST deadline.

President Donald Trump's demands for a wall along the US-Mexico border led to a standoff in the Senate.

Trump's sudden turnaround after supporting a short-term funding extension left Congress with little time to find a compromise that would prevent a shutdown.

Without a deal, a substantial portion of the federal government closed at midnight, and it is unclear when the two parties will be able to find an agreement to reopen those departments.

In a joint statement issued after the shutdown officially took effect, the Democratic Speaker-designate Nancy Pelosi and Senate Democratic leader Chuck Schumer said, "President Trump has said more than 25 times that he wanted a shutdown and now he has gotten what he wanted."

nancy pelosi chuck schumer donald trump meeting

"Democrats have offered Republicans multiple proposals to keep the government open, including one that already passed the Senate unanimously, and all of which include funding for strong, sensible, and effective border security – not the president's ineffective and expensive wall," the joint statement reads.

"If President Trump and Republicans choose to continue this Trump Shutdown, the new House Democratic majority will swiftly pass legislation to re-open government in January."

How did we get here?

The shutdown is the culmination of weeks of debate between Democrats and Trump over the border-wall funding. Here's how it broke down:

Read more:Trump says 'Democrats now own the shutdown' just 10 days after declaring he was 'proud to shut down the government'

  • December 19: The Senate passes a clean short-term funding bill, called a continuing resolution (CR), that does not include border-wall funding but will keep the government open until February 8. Trump supported the bill at the time, Senate GOP leaders said.
  • December 20:Trump flip-flops on the clean CR after listening to attacks from conservative TV pundits and the hardline House Freedom Caucus, and he announces that he will not sign a bill with no wall funding. House Republicans then pass a CR that includes $5.7 billion in wall funds.
  • December 21: Trump demands the Senate vote for the House version of the CR and tells Senate Majority Leader Mitch McConnell to get rid of the legislative filibuster in order to pass the vote with only GOP lawmakers, but the idea is a nonstarter. The Senate votes down the House version of the bill, and the government moves closer to a shutdown at the midnight deadline.

What does the shutdown mean?

The shutdown does not affect the entire federal government since Congress already passed seven of the 12 major funding bills for next year. But the shutdown does impact a slew of agencies, including the departments of Agriculture, Commerce, Justice, Homeland Security, the Interior, State, Transportation, and Housing and Urban Development.

About 800,000 federal workers from those agencies will be affected by the shutdown. Some 420,000 workers will be forced to work without pay since they are considered "essential" employees. The other 380,000 workers will be furloughed, which means they will be barred from work and will not receive pay.

national parks government shutdown

According to the Committee for a Responsible Federal Budget (CRFB), the shutdown will result in the closure of a number of nonessential services in those impacted departments.

"Functions that would be stopped during a shutdown include entry into national parks, Environmental Protection Agency (EPA) site inspections, refunds and audits by the Internal Revenue Service, several Federal Aviation Administration activities outside of air traffic control services, and vehicle safety activities and research,"the CRFB said.

The workers could receive back pay, but Congress would first need to pass a bill giving those employees the money. Members of Congress still receive paychecks during a shutdown.

Click here for more information on the exact shutdown details »

Is there a way forward?

It's unclear if there is a deal on the table that would pass both chambers of Congress and get Trump's signature, and many lawmakers are anticipating a long-term shutdown, if those circumstances materialize.

The president even told reporters on Friday that a government shutdown may last for an extended period of time.

"I hope we don't, but we are totally prepared for a very long shutdown," Trump said during a meeting in the Oval Office.

SEE ALSO: Here's what happens to Social Security and disability benefits during a government shutdown

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'

'You know what? It's yours': Trump reportedly threw his hands up on Syria during phone call with the Turkish president

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trump erdogan turkey

  • Reports from multiple outlets give some clues as to why President Donald Trump made his decision to pull US troops out of Syria, a move that prompted Defense Secretary James Mattis to resign.
  • That development materialized last Friday during a call with Turkish President Recep Tayyip Erdogan, after Erdogan asked Trump why there were still 2,000 troops in Syria if the Islamic State had been defeated.
  • "You know what? It’s yours," Trump said, according to The Washington Post. "I’m leaving."

Capping off what has been a tumultuous week for the Trump administration are reports from multiple outlets that offer some clues as to why President Donald Trump made his decision to pull US troops out of Syria that prompted Defense Secretary James Mattis to resign.

That development materialized last Friday during a call with Turkish President Recep Tayyip Erdogan, after Erdogan asked Trump why there were still 2,000 US troops in Syria if the Islamic State had been defeated.

"You know what? It’s yours," Trump said, according to The Washington Post. "I’m leaving."

The Associated Press reported that members of Trump's national-security team, including Secretary of State Mike Pompeo and Mattis, wrote out talking points to dissuade Turkey from bringing troops into northern Syria and attacking Turkish Kurds, which would put US forces at risk. The US is allied with the Turkish Kurds in Syria, providing them with supplies and training in the fight against the Islamic State.

But both The Post and the AP explain that Trump went rogue.

"The talking points were very firm," one official told the Associated Press. "Everybody said push back and try to offer (Turkey) something that's a small win, possibly holding territory on the border, something like that."

John Bolton, Trump's national security adviser, also allegedly explained on the call that a victory against the Islamic State would need to mean more than just a loss of territory.

Trump, however, sided with Erdogan, and the AP reported that even Erdogan cautioned Trump on pulling troops out too hastily.

Attempts by his national-security team to change course were not successful, and on Wednesday, Trump tweeted out a video where he said that he was withdrawing troops from Syria — catching lawmakers off guard. On Thursday, it was reported that Trump is also cutting down the number of troops in Afghanistan by half.

Mattis, having failed to talk Trump out of leaving Syria, submitted a scathing resignation letter on Thursday, rebuking Trump's "America first" foreign policy and stressing the importance of maintaining alliances.

Lawmakers — including some Republicans that have previously backed Trump— have warned that pulling out of Syria would be a boon for US adversaries. They also expressed dismay at leaving the Kurds, who will likely face an invasion by Turkey.

"If you decide to follow through with your decision to pull our troops out of Syria, any remnants of ISIS in Syria will surely renew and embolden their efforts in the region," a letter from four Republican senators explained.

"The withdrawal of American presence from Syria also bolsters two other adversaries to the United States, Iran and Russia," they continued. "As you are aware, both Iran and Russia have used the Syrian conflict as a stage to magnify their influence in the region. Any sign of weakness perceived by Iran or Russia will only result in their increased presence in the region and a decrease in the trust of our partners and allies."

Trump's campaign platform included ending wars overseas — which he sees as expensive — and on making NATO pay more in defense spending.

SEE ALSO: Read Defense Secretary James Mattis' full resignation letter to Trump

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NOW WATCH: The true story behind the name 'Black Friday' is much darker than you may have thought

How crowdsourcing shipping through technology will make last mile delivery cheaper (AMZN)

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The proliferation of e-commerce has transformed free shipping and same-day delivery from perks to table stakes — and retailers are paying the price. With daily parcel volumes surging and customers increasingly unlikely to foot the bill, companies have been tasked with finding new ways to offer speedy shipments without eating costs.

last mile share of delivery costs

Among the most popular strategies is crowdsourced delivery, the Uber model helping online shops solve the most expensive part of shipping: the last mile problem. Like Uber and other ride hailing apps, a number of crowdsourced delivery solutions have been cropping up over the past few years to ease these pains by connecting customers directly with local couriers. And it’s not just startups either; Amazon, the world's undisputed e-commerce leader, is investing big in crowdsourcing deliveries.

How much does Amazon spend on shipping?

“Free shipping” comes at a high cost. According to Amazon’s 2017 annual report, the company spent $21.7 billion in shipping last year — a number that includes sortation, delivery center, and transportation costs. This is nearly double the $11.5 billion it spent on shipping in 2015. And as the expectation of free, same-day delivery becomes the standard for online consumers, even giants like Amazon need to seek alternative solutions.

The crowdsourcing solution to the last mile problem

The last mile of delivery is the most expensive and time-consuming part of fulfillment for retailers and their logistics partners, comprising 53% of the overall cost of shipment. Crowdsourcing takes the onus off of companies, instead connecting customers directly with local couriers to expedite deliveries and cut down on costs.

The crowdsourcing model is already popular among meal and grocery delivery and, seeing the success of startups like Uber, Airbnb, and GrubHub, e-commerce retailers are now eyeing it to fulfill their online orders. As a result, general use crowdsourced delivery companies have emerged to meet this need.

Here’s a look at how three companies - Amazon Flex, Hitch, and Deliv - are trying their hand in the shipping industry — and what’s coming up next.

Amazon Flex - Deliver with Amazon

Launched in 2015 and piloted in Seattle, Amazon Flex lets customers order and receive packages through its on-demand delivery service, Prime Now, which guarantees free one- and two-hour deliveries. For Prime customers with already high expectations for prompt delivery, not much changes; the service primarily markets itself as a side gig for couriers.

Amazon Flex

For the most part, the app is only open to people who have cars (except in select regions allowing commercial bicycles), so those who want to make deliveries on bike or foot might have to look elsewhere. The service is particularly attractive to rideshare drivers who may want to make extra money without having strangers or potentially disruptive passengers in their cars. Anyone 21 or older with a smartphone, car, and valid driver’s license can log into the app and schedule their availability to start making deliveries.

Shipments can originate at an Amazon location, store, or restaurant. Drivers use their smartphone camera and GPS to scan packages and get turn-by-turn directions to their destinations. As long as they deliver the package within the allotted time frame, couriers make $18-25 an hour — all through a cashless transfer to their digital wallet on the app.

Learn more about Amazon Flex.

Hitch - Crowdsourced Delivery

Hitch

Founded in 2014, Tampa-based startup Hitch gives consumers, “the choice to be Shippers, Travelers, or both.” The platform touts “turning your commute into cash” by pairing up shippers (the people placing the orders) with travelers (the local couriers) who are already heading in the direction of the delivery.

Users create profiles on the app to join the socially vetted community, where they can then rate one another and verify their accounts by adding bank account information. Shippers put out requests to have packages delivered, and Travelers can input travel information to see if there are any available deliveries along their route.

The app uses GPS to find the quickest route and provide tracking, as well as camera functionality to show proof of delivery. All payments are exchanged through Hitch’s third-party payment processing partner, Stripe.

Learn more about Hitch.

Deliv - Same-Day Delivery

Deliv is a general use last mile solution offering same-day service to over 4,000 omnichannel businesses in 35 cities across the country. Some of its biggest partners include Macy’s, Best Buy, Walmart, and IBM.

Deliv Fresh

Rather than just fulfilling ad hoc deliveries for consumers, Deliv seeks to be a long-term business partner solving companies’ last mile problem — evidenced by its breakdown into Deliv Small Business, Deliv Enterprise, and Deliv Fresh for groceries. It offers SLAs, performance metrics, and integrations into business’ online checkout processes.

And the company is growing. In February, 2018, it launched Deliv Rx to extend these same-day services to patients, doctors, pharmacies, hospitals, labs, and clinics. Deliveries can include things like prescriptions, x-rays, medical equipment, documents, and even pet medicine.

Learn more about Deliv.

Growth & Future of Crowdsource Shipping

Want to learn more? The Crowdsourced Delivery Report from Business Insider Intelligence examines the rise of the crowdsourcing model in the last mile delivery space.

In this report, we detail the top use cases for crowdsourced deliveries, as well as the benefits and challenges of using this model for delivering online orders. We also provide insights into how to optimize crowdsourced deliveries for e-commerce and, lastly, we explain the long-term potential of startups appearing in the crowdsourced delivery space as automation plays a bigger role.

Here are some of the key takeaways from the report:

  • Retailers are looking for ways to deliver goods faster to consumers' doorsteps to stave off Amazon's threat and meet customer expectations.
  • To accomplish that, retailers and delivery providers are zeroing in on the "last mile" of fulfillment, the most expensive and time-consuming part of the delivery process, which is when a package reaches the customer's address.
  • Startups like Postmates, Instacart, and others are looking to disrupt the last mile delivery space by leveraging the "Uber model," and connecting businesses to non-professional couriers who can deliver goods instantly.
  • Crowdsourcing can drastically speed up deliveries in urban areas, where there is a high density of deliveries and potential couriers to be matched.
  • However, as delivery volumes increase, crowdsourced delivery startups will need to further optimize their deliveries to improve cost efficiencies.
  • Many of the deliveries these startups perform today will likely be automated in the future, raising the possibility that these startups may eventually look to incorporate new technologies like delivery drones or self-driving delivery vehicles.

In full, the report:

  • Details the factors driving investment and growth in crowdsourced delivery startups.
  • Examines the benefits and drawbacks of using crowdsourcing to deliver online orders.
  • Explains how crowdsourced delivery startups can improve their cost efficiencies to tackle greater delivery volumes.
  • Explores the role that crowdsourcing will play in the future of delivery once automated delivery options, like drones and robots, arrive.

Subscribe to an All-Access pass to Business Insider Intelligence and gain immediate access to:

This report and more than 250 other expertly researched reports
Access to all future reports and daily newsletters
Forecasts of new and emerging technologies in your industry
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Trump’s anger over rate hikes is growing as he hints at firing Fed chairman Jerome Powell

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trump jerome powell

  • President Donald Trump reportedly mentioned wanting to fire Federal Reserve Chairman Jerome Powell, who despite Trump's protests, raised interest rates for the fourth time this year, according to a Bloomberg report.
  • Advisers have reportedly warned Trump of the consequences of firing Powell, which may come at the cost of his political capital.
  • Trump previously claimed the rate hikes would slow the economy, and he described them as a "mistake" and his "biggest threat."

President Donald Trump reportedly mentioned wanting to fire Federal Reserve Chairman Jerome Powell, who despite Trump's protests, raised interest rates for the fourth time this year on Wednesday.

Trump has privately discussed Powell's ouster several times this week, two Trump advisers told Bloomberg. Advisers have reportedly warned Trump of the consequences of firing Powell, which may come at the cost of his political capital.

Trump previously protested against potential rate hikes after the Federal Reserve was expected to raise them for a fourth time by the year's end. Trump claims the rate hikes would slow the economy and described it as a "mistake" and his "biggest threat."

"I think the Fed is making a mistake," Trump said in October. "They are so tight. I think the Fed has gone crazy."

Read more: Trump reportedly blames Treasury Secretary Steven Mnuchin for recommending Jerome Powell as Fed chair

Powell took command of the Fed in February and succeeded economist Janet Yellen. Preventing Powell from serving his four-year term would challenge the integrity of the institution, which relies on its reputation of being an independent body, free of the White House's politics.

Trump previously praised Powell after announcing his appointment to the Fed.

"He's strong, he's committed, he's smart," Trump said in November 2017. "I am confident that with Jay as a wise steward of the Federal Reserve, it will have the leadership it needs in the years to come."

On Wednesday, the Federal Open Market Committee voted to raise the rate by 25 basis points to a range of 2.25% to 2.5%, the highest since 2008.

SEE ALSO: Trump reportedly thought Janet Yellen was not tall enough to lead the Federal Reserve

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'


By the end of 2019, Waymo, Uber, and GM all plan to have fleets of autonomous cars providing on-demand rides — here's how automakers can compete

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Mobility Market

This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

Automakers are on the verge of a prolonged period of rapid change to the way they do business, thanks to the combined disruptive forces of growing on-demand mobility services and self-driving cars, which will start to come to market in the next couple of years.

By the end of 2019, Google spinoff Waymo, Uber, and GM all plan to have fleets of autonomous cars deployed in various US cities to provide on-demand rides for passengers. By eliminating the cost of the driver, these rides are expected to be far cheaper than typical Uber or Lyft rides, and even cheaper than owning a car for personal transportation.

Many industry experts are predicting that such cheap on-demand autonomous rides service will result in a long-term decline in car ownership rates — PwC predicts that the total number of cars on the road in the US and EU will drop from 556 million last year to 416 million in 2030.

This decline in car ownership represents an enormous threat to automakers’ traditional business models, forcing them to find alternative revenue sources. Many of these automakers, including GM, Ford, and Daimler, have plans to launch their own on-demand ride-hailing services with fleets of self-driving cars they will manufacture, potentially giving them a new stream of recurring revenue. This could set them up to take a sizeable share of a market that is expected to be worth trillions by 2030.

However, competing in the on-demand mobility market will pit legacy automakers against ride-hailing services from startups and tech giants that have far greater experience in acquiring and engaging consumers through digital channels. To succeed in what will likely be a hyper-competitive market for urban ride-hailing, automakers will have to foster new skill sets in their organizations, and transform from companies that primarily produce vehicles to ones that also manage vehicle fleets and customer relationships.

That will entail competing with startups and tech giants for software development and data science talent, as well as reforming innovation processes to keep pace with digital trendsetters. Automakers will also need to create unique mobile app and in-car experiences to lure customers. Finally, these automakers will face many overall barriers in the market, including convincing consumers that self-driving cars are safe, and dealing with a complex and evolving regulatory landscape.

In a new report, Business Insider Intelligence, Business Insider's premium research service, delves into the future of the on-demand mobility space, focusing on how automakers will use fleets of self-driving vehicles to break into an emerging industry that's been dominated thus far by startups like Uber and Lyft. We examine how the advent of autonomous vehicles will reshape urban transportation, and the impact it will have on traditional automakers. We then detail how automakers can leverage their core strengths to create new revenue sources with autonomous mobility services, and explore the key areas they'll need to gain new skills and capabilities in to compete with mobility startups and tech giants that are also eyeing this opportunity. 

Here are some of the key takeaways:

  • The low cost of autonomous taxis will eventually lead car ownership rates among urban consumers to decline sharply, putting automakers’ traditional business models at risk.
  • Many automakers plan to launch their own autonomous ride-hailing services with the self-driving cars they're developing to replace losses from declining car sales, putting them in direct competition with mobility startups and tech giants looking to launch similar services.
  • Additionally, automakers plan to maximize utilization of their autonomous on-demand vehicles by performing last-mile deliveries, which will force them to compete with a variety of players in the parcel logistics industry.
  • Regulatory pressures could also push automakers to consider alternative mobility services besides on-demand taxis, such as autonomous on-demand shuttle or bus services.
  • Providing these types of services will force automakers to make drastic changes to their organizations to acquire new talent and skills, and not all automakers will succeed at that.

In full, the report:

  • Forecasts the growth of autonomous on-demand ride-hailing services in the US.
  • Examines the cost benefits of such services for consumers, and how they will reshape consumers’ transportation habits.
  • Details the different avenues for automakers to monetize the growth of autonomous ride-hailing.
  • Provides an overview of the various challenges that all players in the self-driving car space will need to overcome to monetize their investments in these new technologies in the coming years.
  • Explains the key factors that will be critical for automakers to succeed in this emerging market.
  • Offers examples of how automakers can differentiate their apps and services from competitors’.

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A star economist says these 30 risks will define markets in 2019

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new york stock exchange trader

  • Deutsche Bank has produced a 30-item list of the risks it thinks will be the most important drivers of financial markets next year.
  • Produced by Torsten Slok, Deutsche Bank's chief international economist, the list spans everything from a market "fire sale" driven by trading algorithms to Britain leaving the EU without a Brexit deal.

After a turbulent 2018, which has seen stocks swing violently, it is time to look ahead to what might be in store as we head into the new year.

With 2019 less than two weeks away, Deutsche Bank has produced a 30-item list of the risks it thinks will be the most important drivers of financial markets next year.

Read more: The global stock rout shows no sign of letting up as an 'extraordinary' quarter of losses comes to a close

Produced by Torsten Slok, Deutsche Bank's chief international economist, the list spans everything from a market "fire sale" driven by trading algorithms to Britain leaving the EU without a Brexit deal.

Obvious worries, like the US-China trade war and the Fed's continued increases in interest rates, feature prominently, but more esoteric risks, such as a house price crash in Australia also appear.

Check out the full list below:

DB risks to markets

SEE ALSO: While China and the US spar over trade, Europe quietly heads for its worst year since the financial crisis

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NOW WATCH: The equity chief at $6.3 trillion BlackRock weighs in on the trade war, a possible recession, and offers her best investing advice for a tricky 2019 landscape

How the People's Vote campaign is preparing for crucial weeks in the mission to stop Brexit

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Chuka Umunna Anna Soubry People's Vote

  • The People's Vote campaign is preparing for the key months ahead in its mission to stop Brexit in 2019.
  • The campaign expects two Conservative MPs, including a current minister, to join next month.
  • One of the campaign's leading groups has set up a unit for creating ads targeted at constituencies.
  • The unit — known as "Pod"— has strategists with experience of working for David Cameron and Barak Obama.
  • Theresa May has consistently ruled out another referendum.
  • However, with MPs almost certain to vote down her Brexit deal and time running out, many believe the prime minister may be left with no choice but to hold one.

LONDON — The People's Vote campaign for a second Brexit referendum is on the brink of recruiting at least two Conservative MPs, including one government minister, as it prepares for a pivotal few months in its mission to stop the UK leaving the European Union.

The campaign is gaining momentum amid increasing uncertainty over Brexit. The number of MPs behind it is growing and Theresa May is now a regular user of the term "People's Vote."

"We live rent-free in the prime minister's head these days," one insider told Business Insider last week, while one of the group's senior figures said: "I'm chuffed ... it means we get coverage even when we don't do anything!"

The only occasions May actually uses the term are to rule it out altogether. The prime minister is completely against another referendum. She even felt compelled to use a House of Commons statement to attack the idea last week.

Nevertheless, the People's Vote campaign — which brings together a host of anti-Brexit groups — is increasingly confident that bereft of other options, May will use another vote to break the current parliamentary stalemate.

A senior campaign figure told Business Insider this week that at least two more Conservative MPs would declare their support next month. The pair is set to be a current government minister and an MP from the backbenches.

They will follow in the footsteps of ex-transport minister Jo Johnson and former universities and science minister Sam Gyimah, who both quit the government to back a People's Vote over the last few weeks.

Jo Johnson Gary Lineker

The former in particular caused ripples in Westminster, taking to a stage with the unlikely pro-Remain hero and former footballer Gary Lineker at a People's Vote rally across the road from the Houses of Parliament in November.

Johnson's announcement and subsequent public appearance caught even some within the People's Vote campaign by surprise. An insider revealed how Johnson, brother of ex-Foreign Secretary and staunch Brexiteer Boris, did not want to be interviewed by a political journalist at the event because he felt it would be" too formal," leading to a mad rush to find a suitable alternative.

"We didn't know Lineker was confirmed until we picked him up from the station 40 minutes beforehand," they said.

Project 'Pod'

Plenty is happening behind the scenes, too.

Best For Britain, one of the most high-profile groups under the People's Vote umbrella, has assembled a team of seasoned political campaigners who will spend the next few weeks creating ads targeted at specific constituencies.

The unit, known internally as "Pod," contains three former Labour Party employees and two who used to work for the Conservatives. The unit's staff have experience running campaigns for former US President Barack Obama, and David Cameron.

READ MORE: Leading Brexiteer tipped to replace Theresa May accused of 'hypocrisy and dishonesty' by Cabinet rivals

"Pod" has already started producing anti-Brexit adverts tailored for a total of 74 constituencies. Some seats are represented by Conservative MPs who backed Remain but do not support a People's Vote, like Nicky Morgan and George Freeman, and Labour MPs who fall under the same category, like Lisa Nandy and Hilary Benn.

For example, for Crewe and Nantwich which marginally voted Leave in 2016, the unit has made an ad which says: "Where will our 1,073 farmers around Crewe be without the £15 million EU support they need?

"I want a final say. Tell your MP we don't need to miss out."

Crewe & Nantwich is represented by Labour MP Laura Smith.

The Hastings & Rye seat represented by Work & Pensions Secretary Amber Rudd is also on the list. Rudd made headlines last week when she said they could be a "plausible argument" for another Brexit referendum.

Amber Rudd

Best For Britain has also commissioned constituency-level polling in order to put pressure on Labour MPs to support a People's Vote. The aim is to pressure MPs into backing a referendum if, or when, May's deal is voted down by MPs next month. 

"They are the key seats we think their MPs are vital to the debate," a senior campaign source said.

These include seats like Brexit-voting Stoke-in-Trent Central, represented by Labour's Gareth Snell.

There is a strong belief among People's Vote campaigners that the key to another referendum lies is securing the backing of Labour leader Jeremy Corbyn, who currently won't commit to anything beyond simply keeping it "on the table."

As part of the People's Vote campaign's efforts to improve relations with the official opposition, it has developed a close working relationship with anti-racism group, Hope Not Hate. Corbyn ally Samuel Tarry is one of the group's community organisers and provides a potential new route into the Labour leader's office.

A so-called People's Vote has gone from a pipe dream to a very real prospect in just a few months. Downing Street figures privately predict that another referendum will come to pass — no matter how much they don't want it.

However, campaigners know that cannot afford to rest on their laurels, as the most crucial months lie ahead of them.

DON'T MISS: Exclusive: The government's post-Brexit immigration plans are 'skewed', vague and risk severe staff shortages, industry leaders warn

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NOW WATCH: Why Harvard scientists think this interstellar object might be an alien spacecraft

'Food is the next major market that needs disrupting': Venture capital is piling into 'ag tech' in the race for the future of food

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  • Specialised venture capital firms are focussing on the future of food, farming and agricultural technology, dubbed 'ag tech'. 
  • Some $700 million was invested into the nascent "ag tech" industry in 2017, with a larger proportion of funding coming from venture capital.
  • Investors within the space may be able to expect decent one investor says even double-digit returns.

The next market ripe for disruption: food. 

Some $700 million was invested into the nascent "ag tech" industry in 2017, with a larger proportion of funding coming from venture capital. While that is tiny compared to the about $4.2 billion that Agfunder found is ploughed into agriculture sector globally, investors say there's a major evolution afoot — farms are becoming fewer, bigger and more professionally minded, and thus have a growing demand for technology.

"Food is the next major market that needs disrupting," says Chris Kerr, chief investment officer at New Crop Capital. "There's a variety of levers on the market from religion and ethics to climate change, lactose intolerance, sustainability, and health benefits, which are forcing traditional markets to adapt." 

Funds such as Cultivian, New Crop Capital, Anterra Capital, Finistere Ventures, and Pontifax Agtech are becoming a vital part of the financing system for startups in agriculture as well as more established names. 

Investors say the field isn't yet crowded, but growth has put it far from its previous wasteland. 

Venture capital has targeted both early and late plays in the agricultural markets from research students with a great discovery and universities that need professional backing, to more mature projects which require series C or D funding in the realms of millions of dollars.

The other major change has been the shift in demand from consumers who now seek different types of products and greater transparency about the provenance and quality of food. From vegan diets, to those who won't eat genetically modified or non-free-range products, consumers are driving a fundamental change in the way that food and by extension the agricultural industry processes new systems.

Another key issue causing greater demand for farm robotics and artificial intelligence in agriculture has been the demographic shift which has seen the labor pool for agriculture dry up. That, alongside environmental degradation affecting water supplies, and increased demand for meat in developed markets is forcing innovation and new funding requirements on the industry.

Venture capital isn't alone in funding new ventures. Some of the world's largest chemical companies like Dupont, Monsanto, Syngenta, and BASF are forming their own investment arms to aid the development of improved agriculture methods. 

Investors within the space may be able to expect decent one investor says even double-digit returns, given the current lack of major competition for venture capital. The space looks set to become more competitive.

SEE ALSO: The loan market has a new reward — and punishment — system to force firms to be climate friendly

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NOW WATCH: The legendary economist who predicted the housing crisis says the US will win the trade war

Linear TV consumption has fallen off a cliff — here's how media companies are staying alive

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This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

US consumers have been “cord-cutting” — or canceling their pay-TV subscriptions in favor of internet-delivered alternatives — since 2010.

cord cutting accelerates in the us

The number of pay-TV subscribers dropped a record 3.4% year-over-year (YoY) in 2017, and the rate of decline is expected to accelerate further in the coming years. As a result, traditional media companies will continue to see their most important revenue stream erode. To compete in the shifting media landscape, traditional media companies' business strategies must satisfy two goals: extract as much revenue from pay-TV as possible before the opportunity to do so fizzles out, and taper reliance on pay-TV-related revenue along the way.

In this report, Business Insider Intelligence will look at how big media companies are refining their strategies to meet the aforementioned goals and mitigate the impacts of cord-cutting that are detrimental to their business. We also discuss current consumer behavior trends that are simultaneously driving the growth of streaming platforms (like Netflix) and decline of linear TV, as well as actionable insights on how companies can respond.

Here are some of the key takeaways from the report:

  • As consumers flee linear TV, they're spending more time on digital video services with ad-free and ad-lite viewing experiences. 
  • Media companies are responding by becoming less reliant on pay-TV revenue by launching their own streaming services. 
  • Traditional networks are also increasingly seeking M&A opportunities to gain the resources, talent, and technologies necessary to compete with streaming giants.
  • More media companies are beginning to experiment with airing fewer commercials per hour to enhance the linear TV viewership experience. 

 In full, the report:

  • Explains the decline in US pay-TV subscribers in recent years, and how significantly this decline has diminished the viewership and ad revenue of top TV networks. 
  • Outlines the top factors that consumers look for when deciding to subscribe to a streaming service. 
  • Details the top recent M&A deals between media companies, and describes how they've positioned those involved to better compete against streaming giants like Netflix.
  • Provides direction on how to best approach cutting ad loads on linear TV, and explains why experimenting with airing fewer commercials could be beneficial for viewership.

Subscribe to an All-Access pass to Business Insider Intelligence and gain immediate access to:

This report and more than 250 other expertly researched reports
Access to all future reports and daily newsletters
Forecasts of new and emerging technologies in your industry
And more!
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Purchase & download the full report from our research store

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Someone is trying to take entire countries offline and cybersecurity experts say 'it's a matter of time because it's really easy'

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Putin

  • The West's biggest security weakness is in the old electronics and sensors that control processes in infrastructure and industry.
  • It's not that hard to take an entire country's internet offline — it has already happened at least twice.
  • Hackers used to be most interested in stealing your credit card data. Now they're looking to hobble major infrastructure like ports, power grids, and cities.
  • "The problem people don't realise is it becomes a weapon of mass destruction. You can take down a whole country. It can be done," a source tells Business Insider. 

Gatwick Airport is Britain’s second busiest by passenger volume, and Europe’s eighth. And yet it was brought to a standstill for two days by two people and a single drone.

Its vulnerability reminded me of a conversation I had two years ago, at the Web Summit conference in Lisbon with cybersecurity investor Sergey Gribov of Flint Capital. He was talking up one of his investments, an industrial cybersecurity firm based in Israel called CyberX. Half-bored, I girded myself for his pitch. They usually go like this: "The internet is full of hackers! They want to steal your data and your money! If only companies used my company's awesome product, we would all be safe!"

I have heard hundreds of pitches like this.

But my conversation with Gribov was different. It was ... extreme. The criminals who break into the web sites of banks or chainstores and steal personal data or money are not the scariest people out there, he told me. The hackers we really ought to be worrying about are the ones trying take entire countries offline. People who are trying to take down the internet, switch the lights off, cut the water supply, disable railways, or blow up factories.

The West's weakness is in the older electronics and sensors that control processes in infrastructure and industry. Often these electronics were installed decades ago. The security systems controlling them are ancient or non-existent. If a hacker can gain control of a temperature sensor in a factory, he — they're usually men — can blow the place up, or set it on fire. "The problem people don't realise is it becomes a weapon of mass destruction. You can take down a whole country. It can be done," he said.

And then, how do you respond? Does the country that was attacked — the one struggling to get its power grid back online — launch nukes? Probably not, he said, because "you have no idea who did it."

"You can have a team of five people sitting in a basement and be just as devastating as WMDs," he said. "It's really scary. In some sense it's a matter of time because it's really easy."

At the time, I discounted my conversation with Gribov. His VC fund was invested in CyberX, so he had an obvious interest in propagating the idea that the world is full of bad guys.

But in the years since we talked, two unnerving things happened.

"Someone is learning how to take down the Internet," Bruce Schneier, the CTO of IBM Resilient believes

The scope of the 2016 internet outage after the attack on Dyn.Both attacks were conducted by relatively unsophisticated actors. The Dyn attack was done by three young men who had created some software that they merely hoped would disable a competitor's company, until it got out of control. The Mauritania attack was probably done by the government of neighbouring Sierra Leone, which was trying to manipulate local election results by crippling the media.

Apparently, it is possible to take the world offline.

It's not merely that "someone" out there is trying to figure out how to take down the internet. There are multiple someones out there who want that power. In June 2018, Atlanta's city government was hobbled by an attack that wiped out a third of its software programs. The FBI told Business Insider earlier this year that it believed terrorists would eventually attempt to take America's 911 emergency system offline.

"Someone is learning how to take down the Internet," Bruce Schneier, the CTO of IBM Resilient believes. 

Three major power suppliers simultaneously taken over by hackers

Next, I talked to Nir Giller, cofounder and CTO of CyberX. He pointed me to the December 2015 blackout in Ukraine, in which three major power suppliers were simultaneously taken over by hackers. The hackers gained remote control of the stations' dashboards, and manually switched off about 60 substations, leaving 230,000 Ukrainians in the cold and dark for six straight hours.

The hack was almost certainly done by Russia, whose military had invaded Crimea in the south of the country in 2014.

"It's a new weapon," Giller says. "It wasn't an accident. It was a sophisticated, well-coordinated attack."

The fact that the hackers targeted a power station was telling. The biggest vulnerabilities in Western infrastructure are older facilities, Giller believes. Factories, energy plants, and water companies all operate using machinery that is often very old. New devices and software are installed alongside the older machinery, often to control or monitor it. This is what the industrial "internet of things" looks like. Hackers don't need to control an entire plant, the way they did in Ukraine. They only need to control an individual censor on a single machine. "In the best-case scenario you have to get rid of a batch" of product, Giller says. "In the worst case, it's medicine that is not supervised or produced correctly."

CyberX has done work for the Carlsbad Desalination Plant in California. It claims to be the largest seawater desalination plant in the US. And it serves an area prone to annual droughts. Giller declined to say exactly how CyberX protects the plant but the implication of the company's work is clear — before CyberX showed up, it was pretty easy to shut down the water supply to about 400,000 people in San Diego.

2010 was the year that cybersecurity experts really woke up to the idea that you could take down infrastructure, not just individual companies or web sites. That was the year the Stuxnet virus was deployed to take down the Iranian nuclear program.

"Stuxnet in 2010 was groundbreaking"

The principle behind Stuxnet was simple: Like all software viruses, it copied and sent itself to as many computers running Microsoft Windows as it possibly could, invisibly infecting hundreds of thousands of operating systems worldwide. Once installed, Stuxnet looked for Siemens Step7 industrial software. If it found some, Stuxnet then asked itself a question: "Is this software operating a centrifuge that spins at the exact frequency of an Iranian nuclear power plant that is enriching uranium to create nuclear weapons?" If the answer was "yes," Stuxnet changed the data coming from the centrifuges, giving their operators false information. The centrifuges stopped working properly. And one-fifth of the Iranian nuclear program's enrichment facilities were ruined.

"Stuxnet in 2010 was groundbreaking," Giller says.

kim jong un kim yo jong

Groundbreaking, but extremely sophisticated. Some experts believe that the designers of Stuxnet would need access to Microsoft's original source code — something that only a government like the US or Israel could command.

Russia is another state actor that is growing its anti-infrastructure resources. In April 2017 the US FBI and the British security services warned that Russia had seeded UK wifi routers— the little boxes that serve wireless internet in your living room — with a hack that can read all the internet traffic going through them. It's not that Vladimir Putin wants to see what you're looking at on Pornhub. Rather, "What they're doing there is building capability," says Andrew Tsonchev, the director of technology at Darktrace Industrial, a London-based cybersecurity firm that specialises in artificially intelligent, proactive security. "They're building that and investing in that so they can launch attacks from it across the world if and when they need to."

A simple extortion device disabled Britain's largest employer in an afternoon

Then, in 2017, the Wannacry virus attack happened. Like Stuxnet, Wannacry also spread itself through the Microsoft Windows ecosystem. Once activated, it locked up a user's computer and demanded a ransom in bitcoin if the user wanted their data back. It was intended as a way to extort money from people at scale. The Wannacry malware was too successful, however. It affected so many computers at once that it drew attention to itself, and was quickly disabled by a security researcher (who ironically was later accused of being the creator of yet another type of malware).

During its brief life, Wannacry became most infamous for disabling hundreds of computers used by Britain's National Health Service, and was at one point serious threat to the UK's ability to deliver healthcare in some hospitals.

The fact that a simple extortion device could disable Britain's largest employer in an afternoon did not go unnoticed. Previously, something like Stuxnet needed the sophistication of a nation-state. But Wannacry looked like something you could create in your bedroom.

FILE PHOTO: A screenshot shows a WannaCry ransomware demand, provided by cyber security firm Symantec, in Mountain View, California, U.S. May 15, 2017.   Courtesy of Symantec/Handout via REUTERS

Tsonchev told Business Insider that Wannacry changed the culture among serious black-hat hackers.

"It managed to swoop across, and burn down huge sectors in different countries for a bit," he says. "In the course of that, the shipping industry got hit. We had people like Maersk, and other shipping terminals and operators, they went down for a day or two. What happened is the ransomware managed to get into these port terminals and the harbours that control shipping ... that intrigued attackers to realise to realise that was something they could deliberately try and do that wasn't really in their playbook at that point."

"Oh look, we can actually start to do things like take down manufacturing plants and affect the global shipping industry"

"So this year, we see follow-on attacks specifically targeting shipping terminals and ports. They hit the Port of Barcelona and the Port of San Diego and others. That seemed to follow the methodology of the lessons learned the previous year. 'Oh look, we can actually start to do things like take down manufacturing plants and affect the global shipping industry.' A couple years ago they were just thinking about stealing credit card data."

Another scary thing? The Wannacry attack was in May 2017. By December 2017, the US government confirmed that the North Korean government was responsible for the attack. The North Koreans probably just wanted money. The hermit-communist state is chronically poor.

But it may have taught North Korea something more useful: You don't need bombs to bring a nation to its knees.

Oddly, you have a role to play in making sure this doesn't happen. The reason Russia and North Korea and Israel and the US all got such devastating results in their attacks on foreign infrastructure is because ordinary people are bad at updating the security software on their personal computers. People let their security software get old and vulnerable, and then weeks later they're hosting Stuxnet or Wannacry or Russia's wifi listening posts.

National security is, somehow, about "the absurdity of the mundane," says Tsonchev. "These little annoying popups [on your computer] are actually holding the key to national security and people are just ignoring them. Individuals have a small part to play in keeping the whole country safe."

So if you're casting about for a New Year's resolution right now, consider this one: Resolve to keep your phone and laptop up to date with system security software. Your country needs you.

SEE ALSO: Putin might already have your Wi-Fi password

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NOW WATCH: I tried cooking an entire Thanksgiving dinner using Google Home Hub and found there are two major flaws with it

How Alphabet, Amazon, Apple, and Microsoft are shaking up healthcare — and what it means for the future of the industry (GOOGL, AAPL, AMZN, MSFT)

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This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

bii big tech in healthcare ALL Four

The healthcare industry is undergoing a profound transformation. Costs are skyrocketing, consumer demand for more accessible care is growing rapidly, and healthcare companies are unable to keep up. 

Health organizations are increasingly turning to tech companies to facilitate this transformation in care delivery and lower health expenditures. The potential for tech-led digital health initiatives to help healthcare providers and insurers deliver safer, more efficient, and cost-effective care is significant. For healthcare organizations of all types, the collection, analyses, and application of patient data can minimize avoidable service use, improve health outcomes, and promote patient independence, which can assuage swelling costs.

For their part, the "Big Four" tech companies — Google-parent Alphabet, Amazon, Apple, and Microsoft — see an opportunity to tap into the lucrative health market. These same players are accelerating their efforts to reshape healthcare by developing and collaborating on new tools for consumers, medical professionals, and insurers.

In this report, Business Insider Intelligence explores the key strengths and offerings the Big Four will bring to the healthcare industry, as well as their approaches into the market. We'll then explore how these services and solutions are creating opportunities for health systems and insurers. Finally, the report will outline the barriers that are inhibiting the adoption and usage of the Big Four tech companies’ offerings and how these barriers can be circumvented.

Here are some of the key takeaways from the report:

  • Tech companies’ expertise in data management and analysis, along with their significant compute power, can help support healthcare payers, health systems, and consumers by providing a broader overview of how health is accessed and delivered.
  • Each of the Big Four tech companies — vying for a piece of the lucrative healthcare market — is leaning on their specific field of expertise to develop tools and solutions for consumers, providers, and payers.
    • Alphabet is focused on leveraging its dominance in data storage and analytics to become the leader in population health.
    • Amazon is leaning on its experience as a distribution platform for medical supplies, and developing its AI-assistant Alexa as an in-home health concierge.
    • Apple is actively turning its consumer products into patient health hubs.
    • Microsoft is focusing on cloud storage and analytics to tap into precision medicine.
  • Health organizations can further tap into the opportunity presented by tech’s entry into healthcare by collaborating with tech giants to realize cost savings and bolster their top lines. But understanding how each tech giant is approaching healthcare is crucial.

 In full, the report:

  • Pinpoints the key themes and industry-wide shifts that are driving the transformation of healthcare in the US.
  • Defines the main healthcare businesses and strategies of the Big Four tech companies.
  • Highlights the biggest potential impacts of each of the Big Four’s healthcare strategies for health systems and insurers.
  • Discusses the potential barriers that will challenge the adoption of the Big Four tech companies’ initiatives and how these hurdles can be overcome.

SEE ALSO: 

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'Ghastly,' 'Grotesque': EU president's hair-tousling incident is close to sexual misconduct, UK's Amber Rudd says

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Jean Claude Juncker

  • European Commission president Jean-Claude Juncker greeted a female colleague by ruffling her hair.
  • Many, many people thought it was bizarre and sexist.

European Commission president Jean-Claude Juncker would be investigated for sexual misconduct if he was a British politician, according to UK Work & Pensions Secretary Amber Rudd.

She was referring to the way Juncker greeted Pernilla Sjölin, the European Commission’s deputy chief of protocol, last week, when he tousled the back of her hair. In Britain, Rudd's remarks come after Juncker was seen touching British Prime Minister Theresa May on the arm, in a potentially patronising manner, after she confronted him at a meeting during Brexit discussions. In that incident, May believed Juncker had insulted her by calling her "nebulous" in the media. In response, Juncker raised his arm and placed his hand on May's upper arm, as if placating an angry child.

Theresa May Jean-Claude Juncker

Juncker has a reputation among European politicians for being a bit touchy-feely. Not everyone likes it.

“(He’s) ghastly. What I minded before that were those pictures of the way he was holding the Prime Minister. I did not like that,” Rudd told The Telegraph.

“It’s grotesque. I mean, if that happened in our parliament I hope there would be a formal complaint. When I used to go to the EU for meetings, I often had a terrible cold to insist that I didn’t get enveloped in a bear hug. All the EU commissioners love doing their big hugs,” Rudd said.

Here's the video:

Many, many women expressed their disgust on Twitter. Here's a typical reaction:

 

SEE ALSO: Austerity has measurably damaged Europe: here is the statistical evidence

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'

The 10 Android apps that made the most money worldwide in 2018

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google play store

  • Android smartphones are incredibly dominant in the worldwide market.
  • As 2018 comes to a close, Sensor Tower has compiled data on which Android apps generated the most revenue from user downloads this year.
  • Check out the list below of the 10 highest-grossing apps from the Google Play store in 2018.

Social networking apps had some of the highest revenue numbers on Android phones this year, but the apps topping the charts may not be from the big American tech names you're expecting.

That's according to new data from Sensor Tower, which ranked the Android apps that had the highest revenue numbers in 2018. The data covers a period ending on November 30th.

Between Android and iOS devices, there are three apps that appeared on both devices' top 10 lists of highest-grossing apps, and they're all produced by US-based companies.

Here are the highest grossing Android apps in 2018, and how much revenue each app brought in:

SEE ALSO: The 10 highest-grossing iPhone apps in the world in 2018

10. HBO Now — $38.5 billion

What the app does: On-demand video service

Owned by: HBO



9. LINE Manga — $49.4 million

What the app does: Manga comics ereader

Owned by: Line Corporation



8. KakaoTalk — $57.4 million

What the app does: Instant messaging platform

Owned by: Kakao Corporation



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How this art teacher developed an innovative method to create realistic hand-printed portraits

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  • Russell Powell has been a school teacher for 16 years.  
  • He has developed an intricate hand-printing technique.
  • He creates incredibly realistic portraits by printing his hand onto paper.

 

During summer camp, Russell Powell would always doodle on his hand after painting his students' faces.

He would then post photos of his hand art on Instagram and then wash it off.  

One day, he started developing a hand-printing technique, which took him two and a half years to perfect.  

He has opened a studio and sells his art but he still teaches as his students are his main inspiration. 

Produced by Amanda Villa-Lobos

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How three countries are creating the roadmap to a cashless society

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This is a preview of the Global Payments Landscape report from Business Insider Intelligence. Current subscribers can read the report  here.

  • Noncash payments are on the rise worldwide.
  • As new players emerge to capitalize on consumer appetite for digital payment methods, three mature markets — the UK, Australia, and Sweden — have become standouts for what a more cashless society could look like.
  • The UK, Australia, and Sweden are transitioning to digital particularly well, and can serve as a roadmap for other mature markets seeking to overcome the legacy channel of cash.

Noncash payments have been gaining popularity around the world for the last decade. And though cash isn’t anywhere near dead, its global growth is slowing as consumers turn to emerging cashless alternatives.

Cash As A Share Of Total Transactions In Australia

But there are a few key markets - Australia, Sweden, and the UK - where annual noncash payments have already surpassed traditional cash transactions altogether — and they’re stong early indicators of what a truly cashless society could look like.

Why are digital payments on the rise?

The growing adoption of noncash payments is a direct result of the rise of e-commerce, but that’s not the only factor. Consumers today are adaptable to disruptive technologies and are generally open to trying new types of digital payment methods.

This consumer appetite is compounded by their access to infrastructure, as well as the emergence of government-backed initiatives, such as real-time transfers and the backing of electronic currencies, that make digital payments more enticing to both consumers and merchants.

How are Australia, Sweden, and the UK driving the world towards cashless payments?

Australia, Sweden, and the UK are emblematic of opportunities for payments players to lead the world away from cash. The Global Payments Landscape from Business Insider Intelligence, Business Insider’s premium research service, provides a snapshot of the payments industry in each of these three markets.

The report shows that several leading payments players have already emerged or are dominant within each of these regions — and they’re finding success in different ways. For other mature markets seeking to overcome the legacy channel of cash, the digital transformations of Australia, Sweden, and the UK can serve as a roadmap.

Here are the strategies these regions are implementing in the race to become the world’s first cashless society:

  • Australia is launching government initiatives and instating new regulations. The Australian government has banned purchases over AU$10,000 ($7,500) from being made in cash, as well as launched the New Payments Platform (NPP) to allow real-time funds transfer as a means of replacing transactions typically made in cash, such as paying back a friend.
  • In Sweden, consumers are rapidly abandoning cash in favor of cards. In fact, only 2% of the total value of transactions in Sweden consist of cash a figure that’s expected to decline to less than half a percent by 2020.
  • Contactless payments are leading the shift away from cash in the UK. Nearly the entire population has a debit card, and debit card transactions surpassed cash payments for the first time at the end of 2017. This milestone was largely fueled by the surge in contactless cards, which grew 97% annually last year to hit 5.6 billion transactions.

Want to Learn More?

The Global Payments Landscape from Business Insider Intelligence compiles various payments snapshots, together illustrating how digital payment methods are supplementing or replacing cash in each market.

Each snapshot provides an overview of the payments industry in a particular country, and details the evolution of its development. They also highlight notable payments players in each region and discuss the opportunities and challenges that players are facing in their respective markets.

 

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The 14 tech gadgets on our wish lists this year

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iPhone XR

  • The holidays are here, which means it's time for Business Insider's tech team wish list.
  • Members of the team in New York, Toronto, and California provided the items that top their lists this year, like the iPhone XR and Bose's QuietComfort headphones.
  • Here are all the products we're wishing for this season and beyond. 

The holidays are officially upon us, and it's gotten Business Insider's tech team thinking about what's on our wish lists this year.

For some, it's products that are already on the market, products we've all been wishing for for months — hello, iPhone XR!

For others, it's products we expect to see in the coming year. (Where is AirPower, anyway?)

Below, we've compiled the holiday wish lists of Business Insider's tech teams in San Francisco, Toronto, and New York.

Here's what we're asking for this holiday season.

SEE ALSO: From Meghan Markle to the World Cup: Here are the top 10 searches on Google in 2018

Becky Peterson, senior reporter: Dyson V8 vacuum, Bose QuietComfort headphones, a wireless charger, and a smartphone sanitizer.

  1. Dyson V8 vacuum — $330 from Amazon
  2. Bose QuietComfort headphones — $300 from Amazon
  3. Wireless iPhone charger— $22 from Amazon
  4. UV phone sanitizer — "I already own it, but it's my wish that everyone else starts using it." $99 from Amazon


Kif Leswing, senior reporter: "All I want for Christmas is AirPower."

Apple previewed AirPower last year, showing a flat pad the company said could wirelessly charge devices such as an Apple Watch, iPhone, and AirPods case all at once. Apple said the device would arrive in 2018. 

But it's been more than a year since we got our first look at AirPower, and Apple hasn't mentioned it since. Bloomberg reported in June that engineers were struggling to stop the mats from overheating. 



Ben Gilbert, senior correspondent: The "absurdly yellow" iPhone XR.

"Since I gave in earlier this year and bought the new MacBook Air, there's only one other piece of shiny new tech from Apple that I've got my eye on this holiday: the yellow iPhone XR, in all its stunning gaudiness.

That it can't plug into my new Apple laptop without an adapter is mind-boggling, but I'm a sucker for outrageous-looking tech. A bright yellow iPhone is about as outrageous as it gets."

$750 from Apple



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