Lecture 22 & 23: Fintech, Investech, Insurtech, Regtech, Crowdfunding, P2P, BlockChain.

Concepts of
all

Introduction

Redefining and reshaping the Financial Services landscape utilizing Technology. To improve financial
services

Finance + technology

 Innovation Methodologies
 Companies
 New Services
 Technologies
 Business models

Financial services

 Payments, lending, deposits (digital banking)/ (e wallets)/ (mobile banking)

 Insurance (Insurtech)
 Market provisioning, Regulations, Governance (RegTech)
 Capital Raising, investment (InvesTech), Online Portfolio management solution that aims to
invest client assets by automating client advisory.
 Equity Crowdfunding
 P2P lending
 BlockChain
 Cryptocurrency (e currency, bitcoins etc)

Infrastructure

 IT
 Cyber security, Data protection, digital tools
 APIs
 Cloud Computing
 Mobile Computing, Networks, E.g. Tools for easy paisa process
 Data Analytics.

Financial Institutions Facing Disruption:

 Consumer Banking
 Fund Transfer and Payment
 Asset Management and Insurance Firms
 Customer Centricity

Workings

Introduction of digital payment models in Pakistan - Banks and mobile wallet providers are playing a
major role in facilitating not just the customers but merchants, distributors and even large
businesses to become a part of the cashless economy.

Bill payments, mobile top-ups, e-commerce payments and a number of other funding channels are
opening up.
Solutions

 Digital payment in Pakistan is still in its infancy but it has immense potential to revolutionise
the payments infrastructure in the country.
 Working on a micropayment gateway that will democratise payments for all and lower the
barrier for new entrants.
 International corporations are enabling and investing in firms inside Pakistan to collaborate
on the digital banking and microfinance frontiers.
 introduce a new digital-focused framework to encourage the use of non-cash channels for
payments in Pakistan. (Infrastructure plus human capital training and education)
 Digital payment gateways have the potential to steer the country into an era of cashless
economy.
 obtain micro and Nano loans to boost and expand their businesses creating new secure and
robust horizons for individuals and SMEs

Cashless payment solutions

Benefits of digital payments

Easy access to credit

Cheap and quick borrowing. E.g. Easy paisa services.

Secured in case of not carrying huge amounts of physical cash

Conventional Banking problems

Solutions

Issues in Digital Banking

Data privacy

Computer hackings

Technical defaults

Defaults in processing
Sustaining Innovation

Problems in Conventional Investment or digital wealth maximisation.

InvesTech Solutions

Investec Issues
Problems without crowdfunding

Crowdfunding Solutions

Issues in Crowdfunding
BlockChain:

Blockchain technology enables distributed public ledgers that hold immutable data in a secure and
encrypted way and ensure that transactions can never be altered. While Bitcoin and other
cryptocurrencies are the most popular examples of blockchain usage. Decentralised. Digitized.

BlockChain process (workings)

1 A wants to send Money to B

2 the online transaction is represented as a block

3 Block Broadcasted to every party/device in the network. IMC for example, PC app, Mobile app,
Tablet, laptop etc.
4 parties in the network approves the validity of transaction.

5 block is then added to the chain of all blocks (transactions) made up to date. As transparent
record.

6 The money is transferred/moved to B from A

InsurTech

Problems in conventional Insurance

Insurtech solutions

Issues in Insurtech

REGTech

 ERM
 TAX MANGEMENT
 REPORTING
 PORTFOLIO RSIK MANAGEMENT
  AML / KYC
 GOVERNEMNT REGULATION
 CYBERSECURITY
Problems in traditional regulations

REGTech Solutions

Issues in RegTech