Digital Human Chapter 45

THE RISE OF A NEW FINANCIAL STRUCTURE

(FINTECH)
FinTech Investment Growth
InsurTech
RegTech
WealthTech
RoboAdvisors
Lending
SME Financing
Analytics
 Financial Inclusion

M-Pesa Kenya -> Banking with Cellphone

Payment
NeoBank - Online-Only Bank
Platforms, Markets, Clouds
 Blockchain

https://www.youtube.com/watch?
v=o1ugNnMyeZc&t=165s

https://www.youtube.com/watch?v=yKZgivqspdg
FinTech Pattern
 FinTech Pattern

The companies getting a fast track to market through the sandbox

tend to focus on one of three major areas:

• taking inefficiencies out of the existing banking system by, for

example, improving customer onboarding and the customer
onboarding process (know your client, KYC)

• taking friction out of the customer experience by making it easier to

plug-and-play software between banking services

• innovating the banking system by using technological capabilities to

enhance services, such as roboadvising
 FinTech Pattern

FinTech start-ups fell into three categories:

• those that focused on payment processing

• those that generated new lending models using peer-to-peer structures
• those that helped banks through PFM and risk modelling tools
Thank You
Digital Human Chapter 7
THE FALL OF BANKS
 At a Glance....

The key findings of the current banking innovation survey are as follows:

• Only 20 per cent of financial services respondents (versus 21 per cent of all respondents)
say their organisations are reaping the full value from digital. In the next two years,
however, 55 per cent of finance organisations expect to deliver significant impact.

• Companies aren’t delivering digital-driven value to customers as they cannot optimise

end-to-end user experiences beyond the web-enabled front end, especially with intractable
legacy systems. Only 15 per cent of financial services firms say they do this well.

• While digital leaders grow and outcompete, financial firms see a lag in the use of digital to
have a major impact on customer loyalty (50 per cent) and revenue growth (51 per cent) in
particular.

• Financial firms cite key barriers as an inability to experiment quickly (56 per cent), legacy
systems and processes (55 per cent) and change management (41 per cent). They are,
however, less troubled by insufficient technical skills (24 per cent).

• To deliver digital success, financial services providers want to build capabilities for
customer-focused problem solving (76 per cent rate it among the top three most
important digital skills) and adapt to change (73 per cent).
Arguing with a Banker
BANKS’ LEADERSHIP TEAMS ARE FATALLY FLAWED
 Here are the top ten reasons why most companies find
it hard to innovate:
• PR value versus real results: often banks have innovation theatre to make it look like they are doing
something when they actually aren’t internalising it.

• Hampered by heritage: there is simply too much legacy infrastructure to be able to adapt and change.

• No real sense of urgency: few banks have a burning platform and what drives banks is not customers but
regulators so unless it is mandated, why bother?

• Cannibalisation of existing revenue streams: like the WalMart versus Amazon discussion, creating a
marketplace where third parties compete with internal products is not welcomed.

• A lack of experienced innovators: banks tend to eradicate innovation and so an innovation culture is
extinguished.

• A culture clash: a bank’s culture is all about risk minimisation, which directly conflicts with change, and if
no one thinks they can do it, almost everyone thinks they can’t.

• A lack of ownership and sponsorship: the leaders of banks got to where they are because they are
bankers and don’t want to take risks with technology that they don’t understand.

• “Compartmentalised” innovation: innovation takes place around the periphery in departmental

compartments but is never internalised across the enterprise.

• Governance, governance, governance: unless the regulator allows it, we ain’t gonna do it.

• Who else is doing this: if no one else is doing it, then we’re not (but surely that’s why it’s innovation?).
Digital Human Chapter 8
A GLIMPSE OF THE FUTURE
 The Quest of Eternity
• 110 Years to Save for Retirement (with lifespan 150 years)

• Genetically engineered humans

• Printing human body parts

• Printing human organs

• Growing human body parts

• Seeing humans from the inside

• Human life extension

 The Quest of Eternity

• Internet of Things

• The Internet of Everything

• SPACE: NOT NECESSARILY THE FINAL FRONTIER

• Space Money
Thank You