We are currently in the midst of the Fintech revolution. It is evident that technology is significantly transforming and disrupting the financial services landscape. This presents significant opportunities and challenges for incumbents, start-ups and regulatory bodies. Fintech is evolving, moving beyond simply being the realm of start-up disruptors, with many incumbents now making significant R&D investments and many are collaborating with start-ups.
Both interest and investment in Fintech has exploded in the last few years. Fintech, the intersection between finance and technology, has experienced a 67% growth in investment in the first quarter of 2016, with investment reaching $5.3 billion (Accenture, 2016). PwC (2016) report that 83% of financial companies believe that specific aspects of their business are at risk to various fintech start-ups.
There are a number of key themes emerging in Fintech with Blockchain technology, artificial intelligence, RegTech and predictive analytics all being key emerging themes. In financial services, Blockchain is receiving much attention and investment due to its potential to disrupt and transform. It is purported that Blockchain holds the potential for 99% reduced settlement time and risk exposure in capital markets. In 2016, there have been a number of notable Blockchain “Proof of Concept” initiatives. For example, on New Year’s Eve, NASDAQ enabled the first-ever private securities issuance on their new Blockchain technology platform, Nasdaq Linq. Institutions including Citibank, State Street and Credit Suisse are exploring its business potential.
The development of expertise in analytics using banking, regulatory reporting and external market data will be key in shaping the future of financial services. Multiple institutions are researching novel approaches to help their clients develop new insights and business opportunities from utilizing such data.
The emergence of the platform economy together with the advent of the Internet of Things has significant implications for financial service companies, with the combination of mobile, cloud and big data initiatives providing significant opportunities, both for transformation and disruption.
With technology having such an impact on financial services, an upcoming issue of Cutter IT Journal — with Guest Editor Philip O’Reilly, Senior Lecturer, University College Cork — we are calling for papers, written with a practitioner audience in mind that will advance understanding of the state of the art.
Topics of interest include (but are not limited to):
- Blockchain, semantic technologies and smart contracts
- Emerging Fintech payment models and technologies
- Emerging Fintech Business Models
- Artificial intelligence and its role in financial services e.g. Robo-advisors
- Fintech and Customer Experience Management (CXM)
- The impact of Fintech on Governance, Compliance and Risk
- Data Visualization and Analytics in Financial Services
- Integrating Fintech technologies into an incumbent’s ecosystem.
ARTICLE IDEA DEADLINE: SEPTEMBER 16, 2016. Please send your article idea to Philip O’Reilly at Philip[dot]OReilly[at]ucc[dot]ie with a copy to Christine Generali at cgenerali[at]cutter[dot]com and include an extended abstract and a short article outline showing major discussion points.
ARTICLE DEADLINE: OCTOBER 21, 2016
Accenture (2016) Fintech and the evolving landscape: landing points or the industry. Available at http://www.fintechinnovationlablondon.co.uk/pdf/Fintech_Evolving_Landscape_2016.pdf
PwC (2016) Blurred lines: How FinTech is shaping Financial Services. Global Fintech report 2016. Available at http://www.pwc.com/gx/en/advisory-ervices/FinTech/PwC%20FinTech%20Global%20Report.pdf