Fintech has emerged as one of the fastest growing sectors in the financial services industry and has radically disrupted traditional banking. However, it has become clear that for both to thrive, the culture between fintech and incumbent firms must change from one of competition to collaboration. The Financial Services Guide to Fintech looks at this trend in detail, using case studies of successful partnerships to show how banks and fintech organizations can work together to innovate faster and increase profitability.
Written by an experienced fintech advisor and influencer, this book explains the fundamental concepts of this exciting space and the key segments to have emerged, including regtech, robo-advisory, blockchain and personal finance management. It looks at the successes and failures of bank-fintech collaboration, focusing on technologies and start-ups that are highly relevant to banks' product and business areas such as cash management, compliance and tax. With international coverage of key markets, The Financial Services Guide to Fintech offers practical guidance, use cases and business models for banks and financial services firms to use when working with fintech companies.
Author(s): Devie Mohan
Publisher: Kogan Page
Year: 2020
Language: English
Pages: 248
City: London
Cover
Contents
01 Banks versus fintechs during the economic crisis
The crisis
Emergence of the sharing economy
Fintech firms emerge
The rapid growth of fintechs
The fintech alternatives
Three essential factors
Payment – the early disruption
References
02 Fintech for customer experience
Changing customer expectations
Improving quality
Early fintech start-ups and business models
Fintechs trying to attract customers away from traditional firms
Payments and challenger banking
Case studies and success stories 2012–2018
Summary
References
03 Early collaboration models
The fintech threat
Losing customers
Learning from fintechs
Accelerator programmes from banks
Seed funding and early investments
US banks versus European banks
Selling to banks
Summary
References
04 Widening of the fintech ecosystem
Evolution of collaboration models
Beyond banking accelerator programmes
Hackathons and a focus on technology
Venture capital funding
Start-up collaboration programmes and private accelerators
Summary
References
05 Emerging markets driving innovation
Why are emerging countries so good at fintech?
Africa
Asia
Latin America
Fintech hubs and interesting start-ups
Summary
References
06 Governments and fintech hubs
What makes a good fintech hub?
Successful fintech hubs
How are governments supporting fintech?
Regulator–fintech collaboration and support
Regulatory frameworks
SupTech
Government as a catalyst to collaboration
Essential skills development
Summary
References
07 Fintech segments at play
Crowdfunding
Payments
Lending
Robo-advisory
RegTech
InsurTech
Blockchain as an efficiency enabler
Artificial intelligence as the backbone of fintech
APIs as the building blocks of fintech
Security and authentication as a necessity in fintech
Upcoming innovations
References
08 B2B fintech
The characteristics of B2B fintech
Use cases of collaboration
RegTech
Examples of promising RegTech firms
References
09 Collaboration models within fintech
Bank–fintech
Fintech–fintech
Regulator–fintech
Regulator–regulator
References
10 Challenger banking
Types of challenger banks
Reasons for the emergence of challenger banks
Differences between challenger banks and traditional banks
Services provided by challenger banks
Facts about challenger bank use
Threats to traditional banks
Challenger banks in the UK
Prominent challenger banks
Challenges that challengers face
Current trends and the future of the industry
Conclusion
References
11 Data and analytics
Market trends
Disruptive qualities of big data analytics
Machine learning
Application of machine learning
Natural language processing (NLP)
Machine learning and the blockchain
Machine learning and underwriting
Machine learning and algorithmic trading
Machine learning and IoT
Machine learning and robotic process automation
Machine learning and robo-advisory
Big data governance
Information governance and the lifecycle of data
References
12 Conclusion
Summary
The future of fintech
Archaic systems
Data as oil
Robo-advisors and AI
Massive impact
Big players on board
Emerging markets demographics
Don’t believe the hype!
Bank–fintech collaboration will increase
References
Index
