The Future of FinTech: Integrating Finance and Technology in Financial Services

334 Pages·2017·3.54 MB·English

by  Bernardo Nicoletti (auth.)

Palgrave Studies in
Financial Services
Technology
The Future
of FinTech
Integrating Finance and
Technology in Financial Services
Bernardo Nicoletti
Palgrave Studies in Financial Services Technology
Series Editor
Bernardo Nicoletti
Rome, Italy
The Palgrave Studies in Financial Services Technology series features orig-
inal research from leading and emerging scholars on contemporary issues
and developments in financial services technology. Falling into 4 broad
categories: channels, payments, credit, and governance; topics covered
include payments, mobile payments, trading and foreign transactions,
big data, risk, compliance, and business intelligence to support con-
sumer and commercial financial services. Covering all topics within the
life cycle of financial services, from channels to risk management, from
security to advanced applications, from information systems to automa-
tion, the series also covers the full range of sectors: retail banking, private
banking, corporate banking, custody and brokerage, wholesale banking,
and insurance companies. Titles within the series will be of value to both
academics and those working in the management of financial services.
More information about this series at
http://www.springer.com/series/14627
Bernardo Nicoletti
The Future of
FinTech
Integrating Finance and Technology
in Financial Services
Bernardo Nicoletti
Rome, Italy
Palgrave Studies in Financial Services Technology
ISBN 978-3-319-51414-7 ISBN 978-3-319-51415-4 (eBook)
DOI 10.1007/978-3-319-51415-4
Library of Congress Control Number: 2017932557
© The Editor(s) (if applicable) and The Author(s) 2017
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Acknowledgments
This book is the result of the last several years of research on financial
services, where several people are worthy to be acknowledged for their
support, useful comments, and cooperation.
A special mention should be made of Prof. Gustavo Piga, Prof.
Corrado Cerruti, and Prof. Andrea Appoloni at the Universita’ di Tor
Vergata a Roma. Moreover, I acknowledge the support from Dr. Gian
Marco Balletti in collecting and evaluating some basic materials during
his thesis at the same university.
A special thanks also to Aimee Dibbens from Palgrave Macmillan
for her continuous support and encouragement. This series started with
mobile banking, continued with digital insurance, and now analyzes fin-
tech initiatives.
I acknowledge my family, whose constant support and patience made
this book happen.
Bernardo Nicoletti
v
Contents
1 I ntroduction 1
2 Financial Services and Fintech 3
3 Model and Classifications 31
4 Fintech Innovation 81
5 Critical Success Factors 161
6 Responses of Traditional Players 177
7 R egulations 195
8 A Business Model for Insurtech Initiatives 211
9 A Case 251
vii
viii Contents
10 The Future: Financial Services as Platforms 261
11 C onclusions 275
Glossary 279
References 309
Index 321
List of Abbreviations and Acronyms
ABI Associazione Bancaria Italiana
ACH Automated Clearing House
ADAS Advanced Driver Assistance Systems
AFI Alliance for Financial Inclusion
AI Artificial Intelligence
AML Anti-Money Laundering
API Application Programming Interface
App Application (mostly for mobile)
ATM Automated Teller Machine
B2B Business to Business
B2C Business to Consumer
BaFin Bundesanstalt für Finanzdienstleistungsaufsicht
BCBS Basel Committee on Banking Supervision
BI Business Intelligence
BMC Business Model Canvas
BMI Business Model Innovation
BPM Business Process Management
BTC Bitcoin
C2B Customer to Business
CA Controlling Authority
CB Commerzbank
CBA Commercial Bank of Africa
ix
x List of Abbreviations and Acronyms
CD Compact Disk
CFO Chief Financial Officer
CIB Corporate and Investment Banking
CIO Chief Information Officer
CKM Customer Knowledge Management
CLV Customer Lifetime Value
CPU Central Processing Unit
CRM Customer Relationship Management or Credit Risk
Management
CSR Customer Service Representative
DLT Distributed Ledger Technology (aka Blockchain)
ECB European Central Bank
ECM Enterprise Content Management
ECN Electronic Communication Network
EMV Europay, MasterCard, and VISA
ERP Enterprise Resource Planning
ESA European Space Agency
EU European Union
EY Ernst & Young
FCA Financial Conduct Authority
FINMA (Swiss) Financial Market Supervisory Authority
Fintech Financial Technology
FINTRAC Financial Transactions and Reports Analysis Centre of
Canada
FMA First Mover Advantage
FTE Full-Time Equivalent
FX Foreign Exchange
GPU Graphics Processing Unit
HR Human Resource
GSM General System for Mobile Communication
ICAAP Internal Capital Adequacy Assessment Process
ICR Intelligent Character Recognition
ICT Information and Communications Technology
ID Identification Data
IIN Issuer Identification Number
IMSI International Mobile Subscriber Identity