Banking and Fintech a Challenge or Opportunity

BANKING AND FINTECH: A CHALLENGE OR OPPORTUNITY? Inna Romā nova nova and Marina Kudinska ABSTRACT Global economy, growing importance of innovations as well as wide use of technologies have changed the banking business worldwide. Financial technol technologi ogies es (FinTe (FinTech) ch) have have become become an integr integral al part of bank banking ing,, and nowadays banks have started to compete beyond financial services facing increa increasi sing ng comp compet etit itio ion n from from no nonfi nfinan nanci cial al insti institu tuti tions ons prov provid idin ing, g, for for exampl example, e, pay paymen mentt servic services. es. StartStart-up up service service pro provide viders, rs, search search engine engines, s, and an d so soci cial al netw networ orks ks ha have ve expa expand nded ed thei theirr serv servic ices es “int “inter erfe feri ring ng” ” in the fields traditionally covered by banks. The rapid rise of FinTech has changed the business landscape in banking asking for more innovative solutions. These recent tendencies require the banks to increase investment ment in FinTech FinTech,, rethink rethink servic servicee distribu distributio tion n channe channels, ls, especi especiall ally y the business-to-consumers models, increase further standardization of backoffice functions, etc. Some members of the financial services industry see the boom in FinTech as a threat to traditional banking industry. Others believe that FinTech has become a challenge that can be turned into an opportunity as it provides more flexibility, better functionality in some areas, and aggregation of services. The aim of the paper is to analyze the recent trends in banking, identifying opportunities and risks of FinTech

Contemporary Issues in Finance: Current Challenges from Across Europe Contemporary Studies in Economic and Financial Analysis, Volume 98, 21 35 Copyright r 2017 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 1569-3759/doi:10.1108/S1569-375920160000098002 1569-3759/doi:10.1108/S1569-375920160000098002

21

22

INNA ROMĀNOVA AND MARINA KUDINSKA

for banks. A timely integration of FinTech into business allows banks to get an advantage in growing competition. This paper provides an extensive analysis of recent trends in FinTech and banking, examining experience of leading European and US banks, as well as surveys conducted among members of the financial services industry in different countries. The authors have studied the development of the financial innovation and technology market, assessed the existing practices applied in the field of FinTech, identified the main risks related to development of FinTech and financial innovations the banks are exposed to on the micro- and macrolevel. The paper provides recommendations for regulators and banks to ensure reduction of risks associated with development of FinTech. Analysis of FinTech market has shown growing competition, including from nonfinancial institutions. The paper provides practical recommendations to commercial banks for strengthening the position in financial innovations and controlling the risks associated with introduction of financial innovations. Keywords: Banking innovations; FinTech; risks JEL classifications: G21; M15

INTRODUCTION In recent years the business landscape in banking has changed dramatically. After the financial crisis of 2007 2008 the financial market authorities have intensified regulation of the banking sector, introducing new or strengthening existing standards. Besides, innovations and development of information and financial technologies (FinTech) have increased the necessity to look for more innovative solutions also in banking. FinTech have become an integral part of banking, and nowadays banks have started to compete beyond financial services facing increasing competition from nonbank financial institutions. Besides, start-up service providers, search engines, and social networks have expanded their services “interfering” in the fields traditionally covered by banks, for example, providing payment services (as mobile payments, virtual currencies), alternative financing opportunities (as peer-to-peer lending, crowdfunding), wealth management, etc. According to Accenture Report and UK Business Insider, global

Banking and FinTech: A Challenge or Opportunity?

23

FinTech investment has rocketed in recent years reaching ca. 15 billion USD in 2015 (comparing to 4.05 billion USD in 2013). Originally the term “FinTech” referred to the “Financial Services Technology Consortium,” a project initiated by Citigroup to stimulate technological collaboration. Nowadays “FinTech” is a noun related to companies that use modern innovative technologies (e.g., software) to enable provision of financial services. In a broader sense, FinTech is seen as a new market that integrates finance and technology (Arner, Barberis, & Buckley, 2015), and replaces traditional financial structures with new technology-based processes (Hochstein, 2015). As the FinTech sector borders are difficult to define, available data on FinTech is somewhat controversial, depending on companies included in the report. Report of Accenture and CB Insights defines FinTech companies as companies that “offer technologies for banking and corporate finance, capital markets, financial data analytics, payments and personal financial management” (Skan, Lumb, Masood, & Conway, 2014). The “2015 FinTech Report: Investment Trends in FinTech” by the Silicon Valley Bank reports on companies that use technology in lending, personal finance, payments, retail investments, institutional investments, equity financing, remittances, consumer banking, financial research, and banking infrastructure. Others believe that both e-commerce and cybersecurity should also be related to FinTech. Further development and integration of FinTech will reshape finance, and experts already call it the FinTech revolution. It is stimulated by quick development of hardware (including mobile devices), software (virtual “cloud,” personalization of services online) and growing convergence of information technologies (ITs) and communication technologies (Dapp, 2014). The perception of the FinTech revolution is rather contradictory. Some members of the financial services industry see the boom in FinTech as a threat to traditional banking industry. Others believe that FinTech has become a challenge that can be turned into an opportunity as it provides more flexibility, better functionality in some areas of banking business as well as aggregation of services. Thus, the development of FinTech and its impact on the future of banking are extremely topical nowadays. The aim of the paper is to analyze the recent trends in banking, identifying opportunities and risks of FinTech for banks. A timely integration of FinTech into business can allow banks to get an advantage in growing competition. This paper is organized as follows: it provides an extensive analysis of recent trends in FinTech and banking (section “Recent Trends

24


in FinTech”), investigates the possibilities for cooperation versus competition between banks and FinTech companies (section “FinTech and Banks: Competitors or Partners?”), identifies the main risks related to development of FinTech and financial innovations the banks are exposed to on the micro- and macrolevel (section “The Main Risks Related to Development of FinTech”) as well as provides practical recommendations to commercial banks for strengthening the position in financial innovations and controlling the risks associated with introduction of financial innovations (conclusions). The authors have analyzed data of several surveys conducted by Envestnet® | Yodlee®, Statista as well as surveys conducted for the EY FinTech Adoption Index (2015). The authors have studied the development of the financial innovation and technology market, based on publicly available statistical information. The following research methods were used: analysis, synthesis, comparison, generalization and specification, method of expert evaluations, survey, study and generalization of experience, as well as a graphical analysis of the statistical information.

RECENT TRENDS IN FINTECH Over the past 10 years the development of ITs has substantially changed a number of industries, including tourism (hotel and flight reservation systems), trade (electronic ordering systems, online shopping), and media (electronic distribution of content). The financial industry is not an exception. Moreover, the banks are among the pioneers in adoption of ITs as most processes in banking are IT-supported (Alt & Puschmann, 2012). Besides, nowadays banks provide a number of services via electronic channels (e.g., online banking platforms, electronic stock trading, etc.). Investment in IT has become an essential part of banking business despite the size of the bank. Large banks usually concentrate on productivity and operational excellence, whereas small banks often employ a service-oriented business strategy focusing on close customer relations. In both cases ITs play a key role (Tallon, 2010). Over the past 7 years FinTech companies have substantially expanded their services “interfering” in the fields traditionally covered by banks. According to statistical data, after the financial crisis of 2008 the most popular area of the financial sector that attracted the largest investment volume to FinTech companies was related to payments, representing


Fig. 1.

25

Distribution of Financial Technology Investment Areas Worldwide, 20082013 (%). Source: Statista data.

70% of total financial technology investment (see Fig. 1). Data for 2013 already shows qualitative changes in FinTech with substantially increased investment in FinTech companies providing banking and corporate finance services (29% comparing to 10% in 2008), data analysis (19% comparing to 6% in 2008), and personal finance management (14% comparing to 5% in 2008). Statista data show that in 2014 global investment in FinTech has reached ca. 6.8 billion USD. Besides, according to the Business Insider UK, total global FinTech investment in the period from January 2010 to June 2015 has reached 49.7 billion USD. The investment in FinTech is booming  ca. 25% of the investment volume over 5.5 years (over 12 billion USD) was invested in the first half-year of 2015. Arner et al. (2015) have worked out a topology of the FinTech industry. Nowadays FinTech industry comprises five major areas: finance and investment, operations and risk management, payments and infrastructure, data security and monetization, and customer interface. Analysis of the value of investment in FinTech companies worldwide in terms of services shows that the most investment-attractive services are finance and investment as well as payments and infrastructure, particularly, peer-to-peer lending/ online lending/scoring, online acquiring and mobile wallets and personal financial management and planning (see Fig. 2).


26

“Mobile first” banking; Mobile Point of Sale 5.99% technologies; 7.23%

Crowdfunding/ Crowd Bitcoin; investing; Other; 4.69% 3.60% 1.06% P2P/online lending/scoring; 26.80%

SME services; 11.52%

Personal Finance Management/Private Financial Planning; 14.11%

Fig. 2.

Online acquiring/m-wallets; 25.00%

Investment in Financial Technology Companies Worldwide, 2014 (%). Source: Authors’ construction based on Statista data.

According to EY FinTech Adoption Index (2015) 1 the most popular FinTech products in 2015 were money transfer (17.6% of active digitally active users at least once have used such services as nonbank money transfer, online forex exchange, overseas remittances) and savings/ investment (16.7%: online stockbroking/spreadbetting, online budgeting/ planning, online investments, equity and rewards crowdfunding, peer-topeer lending); less popular  insurance (7.2% have used car insurance using telematics, healthcare premium aggregators) and borrowing (5.6% of respondents have used borrowing via peer-to-peer platforms). Substantial future potential is seen in attraction of customers with average annual income of more than 70,000 USD aged 18 54. Besides, the most active FinTech product/service users are in Hong Kong (29.1% of all market surveyed have used FinTech products/services at least once), the United States (16.5%), Singapore (14.7%), Australia (13%), and Canada (8.2%). This corresponds to data showing market leaders in terms of FinTech investment. According to William Garrity Associates Ltd, the world leaders in FinTech investment are the United States of America (63.6% share in global FinTech investment), Europe (19.7%), China (8.1%), and India (4.4%). The biggest player in Europe is United Kingdom with the share in global FinTech investment of 10.9% or 55.1% of total FinTech investment in Europe. Consequently, the top 10 world FinTech companies include China (ZhongAn, Qufenqi), United States (Oscar, Wealthfront, Avant),


27

United Kingdom (Funding Circle, Atom Bank), Germany (Kreditech), Sweden (Klarna), and Israel (OurCrowd). Besides, the biggest impact in 2015 had a number of FinTech companies like Transferwise, Lending Club, R3, Apple Pay, and Funding Circle (KPMG, 2015). The Global FinTech Influencer Survey by Envestnet® | Yodlee® has shown that Data&Analytics and Authentication & Security technologies have made the most essential impact on development of FinTech industry in 2015. Payments innovators like Paypal, M-Pesa, Samsung Pay, Apple Pay, Bitcoin, Google Wallet, and others are already well-known in the market worldwide. Recently popular search engine Google has introduced a pilot application for “hands-free” payments. Even social networks have expanded their business providing some financial services. The most prominent example is Facebook that in the United States is licensed as a money service business, Facebook Payments Inc. (Banking technology, 2016). Facebook has created a virtual currency (“Facebook Credits”), which can be used to purchase items in games and nongaming applications on the Facebook Platform (see Facebook Game Purchases). Analysis of numerous surveys have shown that products/services provided by FinTech companies are getting more and more popular due to easiness to set up an account, more attractive rates/fees, access to different products and services, better online experience and functionality, better quality of service, more innovative products available from traditional banks as well as greater level of trust than the traditional institutions. Growing interest can be indirectly shown, analyzing the search engine Google trends: over the past two years the number of Google searches of “FinTech” on average has increased more than 10 times, especially in Singapore, Hong Kong, Switzerland, South Korea, United Kingdom, and Germany (see Google Trends). On the other hand, among the reasons for not using FinTech products/services named by users in a number of surveys, the most important is lack of information about the products/services available. The other reasons mentioned: users don’t have any need to use FinTech or still prefer traditional financial service providers, don’t know how to use FinTech products/services, or don’t trust them. Another important aspect is related to e-security. Thus, recent trends have shown that FinTech industry is developing very quickly, building potential (in some business fields already existing) competition to traditional commercial banks. Therefore, it is important to investigate whether FinTech is a potential threat or opportunity for traditional banks.

28


FINTECH AND BANKS: COMPETITORS OR PARTNERS? Based on the analysis of products/services provided by FinTech companies, the authors conclude that FinTech companies can be classified in two groups:

 FinTech companies providing services complimentary to bank services (e.g., providing technologies used by banks to provide financial services);  FinTech companies providing services traditionally covered by banks (e.g., payments). This classification forms bases for further analysis of bank potential reaction/action concerning development of FinTech that can be seen as both competitor and partner. Development of FinTech has growing impact on banking business as many banking products are information-based and therefore can be purchased from different financial service providers. Besides, modern data analysis methods and ITs allow individualizing many financial services digitally (Dapp, 2014), making these services more customer-oriented. The financial experts believe that for traditional financial services companies (including banks, insurers and wealth and asset management companies) the risk of disruption is real. Therefore, it is extremely important for banks to stay updated and form cooperation with FinTech in form of partnership or in-door solutions. Technology-driven providers are getting more and more active in providing simple web- and data-based financial products/services creating competition to traditional banks. Increased potential threat to the banking industry is in the field of less knowledge-intensive products/services that are easily standardizable. According to Statista, the financial experts in Europe see possible threats from new potential market participants (FinTech companies) in such fields as payments (95% of respondents see it as a very likely and likely scenario), simple savings products (78% of respondents), current account (64% of respondents), and consumer credit (54% of respondents). Less-potential threat is expected in structured savings products and home loan business (see Fig. 3). Many European banks have already recognized the importance and potential of the IT use in banking business. According to estimates of Deloitte, in 2014 banks in Europe have spent more than 55 billion euro

29


100 90 80 70 60 50 40 30 20 10 0

Very likely and likely

Payments

Simple savings products

Current account

Unlikely and very unlikely

Consumer credit

Structured savings products

Home loan business

Fig. 3. Likelihood of New Financial Market Participants Posing Threat to Existing Retail Banks in Europe, 2014. Source: Authors’ construction based on Statista data.

Fig. 4. The Share of Software Costs to Assets in the Five Largest Banks in Europe, 2008 and 2015. Source: Authors’ construction based on data of bank annual reports.

on IT, however only a small share of it (9 billion euro) was spent on new systems (Deloitte, 2015). At the same time, if we compare the amount of financial resources that five biggest European commercial banks have allocated for the purchase and development of new software (see Fig. 4), the upward trend is obvious: nowadays banks invest much more money to modernize the systems than a few years ago, increasing software costs several times. On the other hand, according to the Statista survey data (February 2015), the reaction of banks worldwide to development of FinTech companies is different. The data show that banks don’t avoid cooperation with FinTech companies, starting up programs to incubate FinTech companies (43% of banks participating in the survey), setting up a venture fund to


30

finance FinTech companies (20%), partnering to cooperate with FinTech companies (20%). Minority of banks have recently acquired FinTech companies (10%) or launched own FinTech subsidiaries (7%). Closer cooperation with FinTech providers would allow banks to use comparative advantages of FinTech companies. Based on analysis of FinTech development and peculiarities of these business fields, the authors have identified important comparative advantages of FinTech providers:

 highly standardized and low-cost financial services;  internet-based and therefore less geographically concentrated;  changing consumer behavior;  lower regulation of financial services;  relatively lower risk of financial services/products (e.g., borrower default risk, maturity risk), etc. High level of standardization of simple data-based financial products/ services allows providing these services to customers at lower costs increasing potential target market. Besides, as FinTech companies are internet-based, FinTech providers are less geographically concentrated and potential customers are diversified. Thus, target market is not limited to one country or region, but standardized services/products without additional costs (or with low costs) can be provided worldwide. Changing consumer behavior towards technology-based solutions (internet-based consumption, communication, development of social networks, social media, mobile applications, etc.) has increased interest for FinTech services/products consequently creating the market for FinTech. Besides, products/services provided by traditional banks must comply with regulatory standards that are linked to costs and expertise. At the same time, one of the major factors that allow FinTech companies to enter the market is substantially lower regulation of financial services provided by nonbanks (Dapp, 2014). In some fields traditionally covered by banks (e.g., in lending) FinTech companies have an important comparative advantage: as they match borrowers and savers directly thus avoiding maturity risks, and the borrower default risk is also carried fully by the lender (The Economist, 2015), as the FinTech companies provide just the lending platform. Mutually beneficial cooperation between traditional banks and FinTech companies would allow banks to ensure higher standardization of simple data-based financial products/services, thus reducing costs of such products/ services (e.g., payments, simple savings products). Besides, modern data


31

analysis methods and ITs can allow banks to improve risk assessment approaches (data-driven lending). Moreover, more intensive use of FinTech would enable banks to increase quality of nonstandardizable knowledge-intensive products. Analyzing practices applied by banks in Europe, a number of successful cooperation examples can be identified: Santander Bank (UK) partnership with the peer-to-peer lending platform Funding Circle (for rejected bank business loan applicants); Goldman Sachs (USA) has made significant investments into payments and alternative finance companies like Square, Bluefin Payments, Bill Trust, Revolution Money; Citigroup (USA) has launched a Citi FinTech unit that is responsible for the development of its mobile banking services etc. (see Tech in Asia, 2015; American Banker, 2015). Banks are getting more and more active in involving into cooperation with FinTech. In terms of necessary investment, partnership with FinTech companies is the least-expensive option with relatively lower risk (comparing to acquiring of FinTech companies or establishment of its own FinTech Company). The experts believe that in the long run digitalization should be given a high priority by traditional banks. It will allow creating opportunity out of challenge to ensure future development of banks. Thus, it can be concluded that FinTech companies and traditional banks at the same time can be competitors and partners, but cooperation is essential for banks and can be mutually beneficial.

THE MAIN RISKS RELATED TO DEVELOPMENT OF FINTECH Traditional banks have long-term experience in provision of financial services and therefore have accumulated necessary expertise especially in such fields as provision of complex financial products, mortgages and corporate lending, risk management, financial intermediation, wealth management, and other services that ask for highly qualified bank managers. Thus banks have an important comparative advantage in the field of knowledge-intensive products and services. For many years banks apply the “know your customer” approach that allows provision of personalized, customer-oriented financial services to ensure customer satisfaction. At the same time, high regulatory standards have ensured establishment of banking business that is based on security and data protection that is

32


an important precondition for the use of financial (or any other) technologies. According to Alt and Puschmann the banking industry will continue transformation in the forthcoming years due to four drivers: consequences of the financial crises, changing behavior of banking customers, pace of diffusing innovative downstream IT solutions, and the emergence of nonbanks (Alt & Puschmann, 2012). The latter are related to development of FinTech. From the point of view of traditional banks, development of FinTech bears additional risks:

 partial loss of the market share due to new competitors (especially in payments, credit cards, simple savings)  additional pressure on margins, consequently lower revenues  increased operational risk and risk of fraud  growing bank dependence on financial services technology solutions. Additional challenges are expected on the regulatory side. Since 2007 in the EU three payment directives were introduced. The latest, the revised Directive on Payment Services (PSD) came into force in January 2016, providing legal foundation for the creation of an EU-wide single market for payments (see Directive on Payment Services). One of the main objectives of this Directive is to “improve the level playing field for payment service providers” and encourage lower prices for payments, thus changing the banking landscape. These risks, related to development of FinTech, require special attention of financial market regulators. Particular bank regulatory standards should be also related to nonbank providers of financial services. For example, all market participants must follow the principle “know your customer,” preventing illegal use of funds and fulfill requirements on 24/7 online transaction monitoring and regular analysis of data. Besides, it is vitally important to have sufficient capital and the level of responsibility ensuring the safety and security of customer information. Emergence of new market players offering innovative high-quality, cheaper, and more convenient financial services will inevitably lead to an increase in competition for traditional banks and consequent loss of customers. Increased competition, in turn, leads to a decrease in revenues from the financial services of banks. The authors recommend the banks to increase financing for new technologies becoming more sophisticated and innovative market participants. The potential of FinTech should not be ignored or underestimated.


33

CONCLUSIONS In modern economies financial services industry has become one of the key contributors to country’s domestic product. FinTech have become an integral part of banking, and nowadays banks have started to compete beyond financial services facing increasing competition from nonfinancial institutions. Consequently, traditional banks have started to lose part of their market share. Development of FinTech has a substantial impact on banks as many banking products are information-based and therefore can be purchased from different financial service providers. On the other hand, modern data analysis methods and ITs allow individualization of many financial services digitally. Increased potential threat to the banking industry can be identified in the field of easily standardizable, less knowledgeintensive products/services (payments, simple savings product, current account, and consumer credit). But timely cooperation with FinTech companies can help banks to create new opportunities. The surveys show that the reaction of banks to development of FinTech companies worldwide is different: banks start up programs to incubate FinTech companies, set up venture funds to finance FinTech companies, establish cooperation as partners; some banks have acquired FinTech companies or launched own FinTech subsidiaries. FinTech companies can be classified in two groups: companies providing services complimentary to bank services (potential partnership with banks can be expected) and companies providing services traditionally covered by banks (FinTech as competitors, cooperation is possible). Closer cooperation with FinTech providers would allow banks to use comparative advantages of FinTech companies as highly standardized and low-cost financial services, relatively lower risk of financial services/products (e.g., borrower default risk, maturity risk), technology-oriented consumer behavior, etc. Although the development of FinTech “create” additional risks for the banking industry: partial loss of the market share due to new competitors, additional pressure on margins, consequently lower revenues, increased operational risk and risk of fraud as well as growing bank dependence on financial services technology solutions. Therefore, nonbank financial service providers require special attention of financial market regulators in terms of applied standards in dealing with customer information, monitoring, sufficient capital, etc. Thus, on one hand, development of FinTech is an additional challenge for banks; on the other hand, this challenge can be turned into an opportunity that will support further growth of banks. Therefore, it is important

34


for banks to commence cooperation with FinTech companies especially in the business fields where FinTech companies provide services complimentary to bank services. Recent developments require banks to increase investment in FinTech, rethink service distribution channels, increase further standardization of back-office functions and services, etc. A timely integration of FinTech into business can allow banks to get comparative advantages in growing competition.

NOTE 1. EY FinTech Adoption Index is based on survey conducted in Australia, Canada, Hong Kong, Singapore, the United Kingdom, and the United States (10,000 digitally active participants).

REFERENCES 12 priceless lessons from BBVA and Goldman Sachs. Retrieved from https://www.techinasia. com/talk/12-priceless-lessons-form-bbva-goldman-sachs. Accessed on March 14, 2016. 2015 FinTech Report: Investment Trends in FinTech. Retrieved from http://www.svb.com/ News/Company-News/2015-FinTech-Report–Investment-Trends-in-FinTech/. Accessed on February 3, 2016. Alt, R., & Puschmann, T. (2012). The rise of customer-oriented banking  Electronic markets are paving the way for change in the financial industry. Electronic Markets, 22(4), 203215. Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The Evolution of FinTech: A New Post-Crisis Paradigm? University of Hong Kong Faculty of Law Research Paper No. 2015/047. Citi Launches FinTech Unit to Lead Mobile-First “Revolution”. American Banker, 16.10.2015. Retrieved from http://www.americanbanker.com/news/bank-technology/ citi-launches-FinTech-unit-to-lead-mobile-first-revolution-1077287-1.html. Accessed on January 12, 2016. Dapp, T. (2014). FinTech  The digital (r)evolution in the financial sector: Algorithm-based banking with the human touch. Frankfurt am Main: Deutsche Bank Research. Directive on Payment Services. Retrieved from http://ec.europa.eu/finance/payments/framework/index_en.htm. Accessed on February 24, 2016. EY FinTech Adoption Index. (2015). Retrieved from http://www.ey.com/GL/en/Industries/ Financial-Services/ey-FinTech-adoption-index. Accessed on January 12, 2016. Facebook Game Purchases. Retrieved from https://www.facebook.com/help/178782558921789. Accessed on March 7, 2016. “FinTech 100”  Announcing the world’s leading FinTech innovators for 2015. KPMG. Retrieved from https://home.kpmg.com/xx/en/home/media/press-releases/2015/12/FinTechannouncing-the-world-leading.html. Accessed on March 7, 2016.


35

Funding Circle & Santander announce partnership to support thousands of UK businesses. Retrieved from https://www.fundingcircle.com/blog/2014/06/funding-circle-santanderannounce-partnership-support-thousands-uk-businesses/. Accessed on March 14, 2016. Global FinTech Survey Results: 51 Experts Reveal 2016 Trends. February 2016. Envestnet® | Yodlee®. Retrieved from http://blog.yodleeinteractive.com/global-FinTech-surveyresults-51-experts-reveal-2016-trends/ Accessed on March 2, 2016. Google pilots “Hands Free” payment app. Banking technology. (June 3, 2016). Retrieved from http://www.bankingtech.com/448822/google-pilots-hands-free-payment-app/. Accessed on March 14, 2016. Google Trends. Retrieved from https://www.google.com/trends/explore#q=FinTech. Accessed on March 14, 2016. Hochstein, M. FinTech (the Word, That Is) Evolves, (2015). The American Banker. Retrieved from http://www.americanbanker.com/bankthink/FinTech-the-word-that-is-evolves1077098-1.html. Accessed on February 3, 2016. Money Transmitter Licenses. Facebook. Retrieved from https://www.facebook.com/payments_ terms/licenses. Accessed on March 7, 2016. RegTech is the New FinTech How Agile Regulatory Technology is Helping Firms Better Understand and Manage Their Risks. Deloitte. Retrieved from http://www2.deloitte. com/content/dam/Deloitte/ie/Documents/FinancialServices/ie-regtech-pdf.pdf . Accessed on February 3, 2016. Skan, J., Lumb, R., Masood, S., & Conway, S. K. (2014). The boom in global Fintech investment: A new growth opportunity for London, Accenture report. Retrieved from https://www.cbinsights.com/research-reports/Boom-in-Global-FinTech-Investment.pdf . Accessed on February 3, 2016. Statista data. Retrieved from http://www.statista.com/topics/2404/FinTech/. Accessed on March 14, 2016. Tallon, P. P. (2010). A service science perspective on strategic choice, IT, and performance in U.S. banking. Journal of Management Information Systems, 26(4), 219252. The FinTech revolution. Retrieved from http://www.economist.com/news/leaders/21650546wave-startups-changing-financefor-better-FinTech-revolution. Accessed on March 14, 2016. William Garrity Associates. Retrieved from http://uk.businessinsider.com/william-garrityassociates-global-FinTech-heat-map-2015-9. Accessed on March 14, 2016. Williams-Grut, O. EY says there is a massive ‘void’ in FinTech: ‘Is anyone actually using this stuff?’ UK Business Insider 15.01.2016. Retrieved from http://uk.businessinsider.com/ ey-statistics-on-FinTech-usage-2016-1. Accessed on March 7, 2016. Williams-Grut, O. This map shows just how much Britain is dominating European FinTech . UK Business Insider, 09.09.2015. Retrieved from http://uk.businessinsider.com/williamgarrity-associates-global-FinTech-heat-map-2015-9. Accessed on March 7, 2016.

Banking and Fintech a Challenge or Opportunity

Recommend Documents