Following the trend of our latest newsletter, AI and Machine Learning, this newsletter will focus on the growth of FinTech in 2019.
Deloitte defines financial technology (“FinTech”) as “digital innovation in the financial sector. At its inception, the understanding of FinTech was limited to innovative ways of facilitating payments and transactions. Underpinned by revolutionary shifts in internet and mobile technology in recent years, the realm of FinTech has witnessed explosive growth. Nowadays, it refers to a wide variety of technological interventions within the financial services arena, such as crowdfunding, online customer acquisition, mobile wallets, P2P lending, MPOS (mobile point of sale), MSME (micro, small, and medium enterprise) services, personal financial management, private financial planning, Blockchain and cryptocurrencies. FinTech is also used to describe businesses that aim to provide financial services by making use of software and modern technology.”
Below are recently published articles related to FinTech:
- Antonio Gara in, The Future of Wall Street: FinTech 50 2019, analyzes the Forbes FinTech 50 and provides a brief description of top FinTech firms, what they do, who their users are, and how much they’re worth.
- In The Fintech Revolution: Who Are the New Competitors in Banking, Eloi Noya looks at three common characteristics that threaten incumbent banks:
- Focus on a single product
- Use of advanced technology to achieve a competitive edge
- Clear customer orientation with a focus on solving users’ problems
- Should FinTechs be regulated like banks? Maybe it levels the playing field, or maybe it paves the way for FinTech’s to have direct access to the payment system?
By Zach Gould, CFO Consulting Partners