The employees that do come up to the lab are likely to spend
a lot of time thinking about blockchain, the technology behind
Bitcoin. It's thought to be a more secure way to send and verify
financial transactions, as it eliminates middlemen and ensures
everyone involved has an indelible record of money
coming and going.
More than 200 employees attended the event and some will spend part of this week figuring out how BNP might benefit from implementing blockchain technology. Then the space will open up to all employees.
Banking is changing fast, with startups encroaching on the big companies' turf, and new technologies like blockchain, which is decentralized, threatening to take some control away from big banks.
BNP Paribas is an investor in Digital Asset Holdings (DAH), the blockchain startup run by former JPMorgan CFO Blythe Masters. BNP's head of commodities and FX, Catherine Flax, sits on the board and is involved with the startup's efforts to implement blockchain technology to business processes. BNP is also one of forty banks that signed on to R3, the industry wide body trying to bring blockchain technology to finance.
To show it's serious, the launch of the innovation lab was combined with what it's calling "America’s Blockchain Bizhackathon," which brought together industry leaders in the blockchain community including the CMO of Digital Asset Holdings, the co-Founder of R3, fintech investors, and a blockchain strategist at Microsoft.
Its high ceilings and laptop-friendly wood tables may inspire BNP's employees come up with the ideas that help the company adapt and compete. Or it could just be a place for employees to get a free snack.
The company is also running what it calls an "Ideation Campaign," which asks employees to submit proposals to improve the bank's business processes.
BNP Paribas clearly hopes so. It opened what it's calling an "innovation zone" Wednesday on the 30th floor of its midtown Manhattan US headquarters.
"I was inspired by how my own kids are working these days," said Cecile Vilaraseau-Remy, head of transformation and premises at BNP Paribas Americas.
That's why competitors are acquiring startups and launching accelerators. BNP Paribas is hoping this lab will help it stay relevant.
BNP Paribas is a big player in international finance worldwide. However, its US presence is a growing, but relatively small part of its business. It has 188,000 employees worldwide, with 16,000 in North America.
Innovation labs have a mixed track record. It can be hard to transplant a freewheeling creative spirit into companies with strong hierarchies and an entrenched culture, and some companies end up pulling the plug on the experiments.
There's a bright and airy feel. It's modern, if rather stark.
BNP's is no different. Its kitchen has free drinks and snacks. Its desks and chairs are made of recycled materials. It looks more Brooklyn than big bank.
And BNP has watched as other banks like Wells Fargo, Citi and UBS have established their own in-house fintech labs and innovation centers in recent years, complete with the kind of startup-style that's synonymous with Silicon Valley.
"The lab is open to everybody," he said.
"The goal here is to foster all kinds of innovation and to reshape the entire work experience," said Bruno d'Illiers, COO of BNP Paribas North America. He sees it as a place where employees from different divisions can meet and brainstorm.
Its better-known competitors are racing to acquire or partner with hot fintech startups. JPMorgan teamed up with On Deck Capital, an online lender. UBS' wealth-management arm teamed up with SigFig, a so-called robo-advisor. Another automated investment company, FutureAdvisor, was acquired by BlackRock.
Can 5,000 square feet transform a bank?
Others using the space may work on big data, robotics, automation, and artificial intelligence, areas that have only recently started to infiltrate the staid world of banking.
Wealth Manager Canaccord: ICOs Could Become Commonplace
Initial coin offerings (ICOs) could one day come to be seen as similar to initial public offerings (IPOs), according to a new report from financial services firm Canaccord Genuity.
Alleged Bitcoin Launderer Faces Extradition Hearing Next Month
An alleged money launderer tied to the defunct BTC-e bitcoin exchange and wanted by both Russia and the U.S. will attend an extradition hearing next month.
The Dec. 6 hearing, The Associated Press
Fujitsu Eyes Cryptocurrency Trading With Cross-Blockchain Payments Tech
Japanese IT firm Fujitsu has unveiled a new payments technology designed to facilitate transactions between blockchains.
Announced today, the "ConnectionChain" project is aimed at providing a way f
Brokerage Chief: Bitcoin Futures Must Be Quarantined
A well-known electronic brokerage firm is issuing dire warnings against the CME Group's plan to launch a bitcoin futures contract next month.
But Interactive Brokers, in a comment letter dated Nov.
Tezos Founders Hit With Second Class Action Suit
For the second time in less than three weeks, a lawsuit has been filed against the founders of the Tezos project.
Pursued in the U.S. District Court in Florida, the suit alleges Tezos founders Arth
India's Supreme Court Prods Government on Bitcoin Regulation
The Indian Supreme Court has asked the government to respond to calls to regulate bitcoin.
Three justices issued a notice to the central bank, the market regulator, the tax department, and several
'Big Four' Firm KPMG Joins Blockchain Advocacy Group
Accounting giant KPMG has become the latest member of the Wall Street Blockchain Alliance (WSBA).
Joining the non-profit trade association as a corporate member, KPMG will assume a seat on its boar
Morgan Stanley CEO: Bitcoin Is 'By Definition Speculative'
Morgan Stanley chairman and CEO James Gorman has said that bitcoin is "punching above its weight," according to a news report.
Speaking to CNBC this morning, however, Gorman further said that the c