Table Of Content

Table of Contents Title Table of Contents Prologue Chapter 1: Introduction What is the Fintech Industry? Areas of Fintech Short History of Fintech Why is Fintech Important? Why has Fintech Become Popular Now? Global Fintech Investment Main Fintech Hubs The Fintech Unicorns Noteworthy Exits Let’s get started Chapter 2: New Entrants to Banking New Banking Entrants in a Flash The Traditional Banking Landscape New Operating Models for Banking Banking as a Service and Open APIs Neo-banks, Challenger Banks, and Ibanks Key Players The Future in a Flash Chapter 3: Rethinking Payments and Remittances Payments and Remittances in a Flash Traditional Remittances Size of the Remittances Market Upcoming Trends in Remittances Innovative Ways of Sending Money Key Players Social Media-based Remittances Key Players Nanopayments The Future in a Flash Chapter 4: Digital Lending Innovation Digital Lending Innovation in a Flash Short History of Lending Peer-to-Peer Lending P2P Marketplace Lending Business Model Key Players Consumer Lending Key Players Digital Lending for Students Key Players Digital Lending for SMEs Key Players Digital Mortgages Key Players The Future in a Flash Chapter 5: Commercial Banking Transformation Commercial Banking Transformation in a Flash How Commercial Banking Works SME Market Size The Impact of Fintech on Business Banking The Impact of Fintech on Corporate Banking Key SME Banks to Watch Online Accounting for SMEs and Integration with Business Banking Tools for SMEs Key SME Tool Players The Future in a Flash Chapter 6: Next Generation Commerce Next Generation Commerce in a Flash Changes in Customer Shopping Behaviour Point of Sales (POS) Evolution mPOS Business Model Key Players Tablet-based Cash Registers Key Players Online Acquiring Key Players Chapter 7: Crowdfunding and Crowdinvesting Crowdfunding and Crowdinvesting in a Flash How Businesses Traditionally Fund Themselves Crowdfunding Business Model Market Size Key Crowdfunding Platforms Top Crowdfunding Campaigns Crowdinvesting Key Crowdinvesting Platforms The Future in a Flash Chapter 8: Innovative Wealth Management Innovative Wealth Management in a Flash How Wealth Management Works Changes in Customer Expectations Changes in Advisors Changes in Data Analytics Changes in Access to Products Social Investing Some Novel Investment Ideas Key Players Serving Individual Investors Key Players Serving Investment Managers Personal Finance Management The Future in a Flash Chapter 9: The Power of Big Data The Power of Big Data in a Flash History of Data HowBig Data Works How to Use Big Data Innovatively Big Data in the Financial Services Industry Key Players in Big Data Analytics The Future in a Flash Chapter 10: The Internet of Things The Internet of Things in a Flash What Drives the Growth of IoT? The Impact of IoT on Businesses The IoT in Categories Combining IoT and Blockchain The IoT in Financial Services O2O and IoT in FinTech Challenges Faced by the IoT Successful IoT Use Cases in the Financial Sector The Future in a Flash Chapter 11: Blockchain and Distributed Ledgers Blockchain and Distributed Ledgers in a Flash About Distributed Ledgers What is Blockchain? The Components of Blockchain Top Cryptocurrencies Cryptocurrency Wallets How Blockchain will impact Financial Services Investment in Blockchain Use Cases for Blockchain The Future in a Flash Chapter 12: The Rise of InsurTech The Rise of Insurtech in a Flash How Insurance Works Market Size Drivers of Disruption Peer-to-Peer Insurance Blockchained Insurance and Machine Learning Wearables in Insurance What Traditional Insurance Firms Can Do Interesting InsurTech Ideas Key Players in Insurtech The Future in a Flash Chapter 13: Identification, Cybersecurity, and Regtech Identification, Cybersecurity, and Regtech in a Flash Traditional Ways of Using Identification Unique Identification System in India Identification for the Unbanked Using Biometrics as Identification The FIDO Alliance OpenID Connect Using a Distributed Ledger for Identification The UN Identity Aspiration Cybercrime and Its History The Cybersecurity Sector Types of Cybercrime Cybersecurity Categories and Players Regulation Technology (Regtech) The Future in a Flash Endnotes Acknowledgements Join our Newsletter FINTECH IN A FLASH Financial technology made easy Copyright © 2017 Simtac Ltd. All rights reserved. www.fintechflash.co.uk London, United Kingdom No parts of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright owner. This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser. Under no circumstances may any part of this book be photocopied for resale. Cover Photography from Depositphotos.com Your Free Gift As a way of saying thanks for your purchase, I’m offering a free report that’s exclusive to my readers. Fintech is becoming more and more strategic, and it is a great place to focus your career and investments. If you’re interested in building your own Fintech empire, I recommend you download my How to Get into Fintech Infographic, which contains an introduction to the main places where you can start your journey into Fintech www.fintechflash.co.uk/freebie About the Author Financial savant, author, and advocate, Agustín Rubini has many interests and is devoted to excelling in these fields. With many years of experience as a financial industry strategist, Agustín is passionate about the world of finance and the future of financial services. He spends much of his time speaking and writing about fintech and advising businesses on innovation and digital transformation. He has a strong background in developing digital strategy, driving innovation in the financial services industry, and is well versed in the disruptive effect of technology on the financial services industry. As a means of helping others understand the complexities of the financial services industry, Agustín wrote and published Fintech in a Flash, a comprehensive guide to financial technology. As a resident of London, Agustín’s love of the UK led to the release of his first book, a touristic novel about a young Latin American’s first trip to London. An advocate of child welfare, arts and culture, and a proponent of education, Agustín combines his love of science and technology, knowledge, and compassion to effect positive change and offer a better understanding of our complex world. To my son Luca Lu, who fills me with laughter every day. And to my wife Elena, who kept me going through this process. CONTENTS AT A GLANCE Table of Contents Prologue Chapter 1: Introduction Chapter 2: New Entrants to Banking Chapter 3: Rethinking Payments and Remittances Chapter 4: Digital Lending Innovation Chapter 5: Commercial Banking Transformation Chapter 6: Next Generation Commerce Chapter 7: Crowdfunding and Crowdinvesting Chapter 8: Innovative Wealth Management Chapter 9: The Power of Big Data Chapter 10: The Internet of Things Chapter 11: Blockchain and Distributed Ledgers Chapter 12: The Rise of InsurTech Chapter 13: Identification, Cybersecurity, and Regtech Acknowledgements Join our Newsletter PROLOGUE When I started working in financial services, just starting out in management consulting, I would have never dreamed of writing a book on the topic. My first impression of the industry was that it was highly regulated, static, boring ... Boy, how wrong was I! I was right when I said it was highly regulated. But static and boring? Not at all. Financial service is one of the most important industries, as the expression used in Cabaret goes – “money makes the world go round”. Since I started in banking, I’ve seen a lot of changes. However, over the past few years, the change rate has been exponential. Whilst going digital used to be a nice thing to do, it is now a necessity for any serious financial services institution. The application of new technologies to financial services creates loads of opportunities for disruption, as well as many job opportunities for the people that have the right skill set. However, getting up to speed in this sector is not that easy. The quantity of news and analysis that’s generated on a daily basis is so huge that keeping up to date feels like climbing a mountain. My motivation for creating this book, and the online blog that complements it, was to provide an entry point to this exciting industry. Fintech in a Flash aims to provide an overview of the whole sector, and readers that start off with no knowledge of the industry will come out the other side with an intermediate understanding. This can help seasoned financial services professionals as well as new entrants into the industry. I hope that by reading this book and following the blog, you develop knowledge of and love for this industry. C H A P T E R 1 INTRODUCTION What is the Fintech Industry? The financial technology, or fintech, industry, refers to the group of companies that are introducing innovation into financial services through the use of modern technologies. Some fintech firms compete directly with banks, whilst others have partnered with them or supply them with good or services. What is clear is that fintech companies are improving the financial services world through introducing innovative ideas, allowing for speedy delivery and increasing competition. Financial technology integrates various types of financial service into the day to day lives of customers. Millennials, as well as the generations coming up behind them, are used to technology and want to manage their money in an easy and quick manner, instead of walking to physical branches to perform transactions and other operations. Fintech is redefining financial services in the 21st century. Originally, the term applied to technology used in the back-end of established trade and consumer financial institutions. It has expanded to include various innovations in technology, including cryptocurrencies, machine learning, roboadvice and the Internet of Things. Areas of Fintech In this section, we provide a sneak preview of what will be covered in the book. Feel free to skip to any chapter that interests you, or read the chapters in order. In our New Entrants to Banking chapter, we look at the new business models that are being introduced to challenge traditional banking, such as aggregators and infrastructure providers. We also reflect on how open banking and APIs will change the industry. In our Payments and Remittances chapter, we will explore how fintech is