{"id":568,"date":"2017-12-20T02:01:53","date_gmt":"2017-12-20T02:01:53","guid":{"rendered":"http:\/\/kusuaks7\/?p=173"},"modified":"2025-04-04T12:17:39","modified_gmt":"2025-04-04T12:17:39","slug":"fintech-is-not-just-fintech-anymore","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/fintech-is-not-just-fintech-anymore\/","title":{"rendered":"Fintech is not just fintech anymore"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tReady to learn Blockchain?\u00a0Browse courses<\/a>\u00a0like\u00a0Blockchain for Finance Professionals<\/a> developed by industry thought leaders and Experfy in Harvard Innovation Lab.<\/em><\/strong>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThere\u2019s been a lot of talk about\u00a0fintech lately. We talk about the\u00a0billions of dollars<\/a>\u00a0being invested in fintech; the\u00a0wave of unicorns<\/a>\u00a0and start-ups in this space; the\u00a0challenge they bring to banks<\/a>\u00a0and incumbents; the way in which they are\u00a0reaching new spaces and places<\/a>; but what is fintech? It is no longer this big bucket of finance and technology. In fact, saying \u2018fintech\u2019 is like saying \u2018retailer.\u2019 But what exactly are they retailing and, in the fintech sense, what areas of finance are these companies automating?\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThis question gets interesting as we now have a market that is spreading its wings into lots of different areas. It is no longer one big bucket, but many.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\nThere is RegTech for Regulatory Technologies; WealthTech for Wealth Management Technologies; InsurTech for Insurance Technologies; and so on. On top of that,\u00a0fintech has gained subcategories like Lending, Analytics, Digital Identity, Cybersecurity, SME and Student Financing, Payments, Roboadvice, Blockchain Distributed Ledgers, Neobanking, and more. Then there are also some generic technologies around Cloud, the Internet of Things, Artificial Intelligence, Machine Learning, Biometrics and others that are also creating fintech themes and impacts. So what is the real state of play and what are the impacts?\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe real state of play is a three-stream market of firms using new technologies to offer new services in banking and insurance.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe first stream creates a whole new financial structure, with crowdfunding\u00a0as a great example. Crowdfunding allows start-up firms to get funding on day one from their potential customers. It used to be that a start-up had to go to a bank to get money to get going. The fledgling company\u00a0had to spend a considerable part of that money on marketing to reach their target audience via media. Sites like\u00a0Kickstarter<\/a>,\u00a0Indiegogo<\/a>,\u00a0Crowdcube<\/a>\u00a0and\u00a0Seedrs<\/a>\u00a0collapse that start-up structure into one process, where your market and your customers provide you with the funds directly to get going.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe second stream of fintech is removing friction from financial markets. A good example of this category is\u00a0Stripe<\/a>, which\u00a0allows merchants to set up their checkout systems in minutes through a simple API. Try doing that with a bank; it takes days. That is why Stripe\u2019s valuation almost doubling year-on-year \u2013 the firm had a valuation of $5bn in 2015 and $9bn in 2016 \u2013 as it rapidly grows into a global standard. Not bad for a six-year old company.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe third stream of fintech firms are focused upon reducing costs and overcoming inefficiencies within banks. A great example here is what the banks call KYC, Know Your Customer. Banks must do KYC by law, and it involves verifying that you are who you say you are. You know the drill. When you want to open a new bank account, you have to show various documents from a passport or driving licence to three utility bills that have your name and address on it. This costs the bank a lot of money and the customer a lot of time, so automating this with a digital process would save billions, and there are a range of blockchain start-ups trying to do just that.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tNote that the three streams I\u2019ve outlined do not include one that replaces banks, because there isn\u2019t one that replaces banks. Some may believe that\u00a0bitcoin<\/a>\u00a0will replace banks, but there are actually a range of bitcoin banks out there because, if you want to store your bitcoin for the long term, you need a bank to store them in. Otherwise, you might as well use something like Mt.Gox which, when it went bankrupt, lost its customers millions with no rights or guarantees of ever getting that money back. That is why we\u2019ll keep using banks, loathe \u2018em or love \u2018em.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Ready to learn Blockchain?\u00a0Browse courses\u00a0like\u00a0Blockchain for Finance Professionals developed by industry thought leaders and Experfy in Harvard Innovation Lab.There\u2019s been a lot of talk about\u00a0fintech lately. We talk about the\u00a0billions of dollars\u00a0being invested in fintech; the\u00a0wave of unicorns\u00a0and start-ups in this space; the\u00a0challenge they bring to banks\u00a0and incumbents; the way in which they are\u00a0reaching new<\/p>\n","protected":false},"author":46,"featured_media":3151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[99],"ppma_author":[1669],"class_list":["post-568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-fintech"],"authors":[{"term_id":1669,"user_id":46,"is_guest":0,"slug":"chris-skinner","display_name":"Chris Skinner","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Skinner","first_name":"Chris","job_title":"","description":"Chris Skinner is known as an independent commentator on the financial markets and fintech through his blog, the Finanser.com<\/a>, as author of the bestselling book Digital Bank<\/em><\/a> and its new sequel ValueWeb<\/em><\/a>.  <\/em>He is Chair of the European networking forum The Financial Services Club and Nordic Finance Innovation, and a Non-Executive Director of the Fintech consultancy firm 11:FS.  He is on the Advisory Boards of many companies including B-Hive, Bankex, iambank, IoV42, Innovate Finance, Life.SREDA, Moven, Meniga, Pintail, Project Exscudo and the Token Fund, and has been voted one of the most influential people in financial technology by the Wall Street Journal’s<\/em> Financial News<\/em><\/a>.   <\/em>"}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=568"}],"version-history":[{"count":4,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/568\/revisions"}],"predecessor-version":[{"id":37617,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/568\/revisions\/37617"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/3151"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=568"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}