Next Gen FinTechDigital Transformation’s Impact On Financial Industry

Understand FinTech Today

Financial Tech (FinTech) has been steadily gaining interest over the last five years. In 2015, Financial investment drastically increased. Particularly, a $4 billion dollar investment in Alibaba’s Ant Financial has pushed its valuation to $60 billion dollars*.

In 2015, there were 100 companies that VCs actively monitored and funded. Of those, 19 were labeled unicorns. Unicorns include Venmo, Square, and Lending Club. However, most of them are in Payments or Lending. Other areas have been lagging investment and innovation.

Four Industry TrendsNo. 1: Electrons are becoming our currency. We are moving into a cashless society.

Today, we do not have to go to banks to deposit checks; we can just take pictures with an app. The regulation of digital currency like Bitcoin through companies like Elliptic and Colu is will drive B2B and B2C adoption.

Four Industry Trends

No. 2: Decentralization will allow customers to have more control and access to their financial resources that only institutions previously had.

For example, Credit Karma provides customers with transparency and understanding. Kreditech provides understandable data that will allow customers to conduct more self-serviced wealth management.

Four Industry Trends

No.3: Mobile, cross-platform connectivity (IoT) fueled by consumer needs will reach a tipping point.

Mobile devices and lower costs of on-demand computing resources drive drastic innovation as we see with a company such as Number26.

Four Industry TrendsNo. 4: Data has matured to that point that we can now leverage it via advanced algorithms to better understand consumer behavior and beyond.

This allows the development of new customizable, but utilitarian products and services that help consumers live better lives. Companies like Affirm and Kabbage focus on the consumer; xero and prospa serve small businesses.

How We Innovate in FinTech Tomorrow

To transform the financial industry, financial professionals and technologists need to switch roles.

Both need to familiarize themselves with the financial industry through opposite lenses. Do not think that a top-level understanding of technology or finance alone will make a company or individual successful.

Financial institutions are very powerful, as are technology companies. Collaborative programs and partners will lead to joint innovation.

As a financial professional, do not be afraid of computers or programming.

A great example is tastytrade. The founders are financial gurus and professional traders (master minds behind ThinkorSwim) who possess a passion for technology and built an online video platform to explain global trends in the market.

These tools do not teach customers how to understand money and investment, but they teach you how to explain controlling risks and maximizing profit technological advancements to your clients.

 

Walk in the Shoes of a Technologist

Walk in the Shoes of a Technologist

If you are a technologist, participate in finance-related technology projects. Join FinTech hackathons to model information and run new scenarios to create new products from the data you have access too.

At Beyondsoft, we are doing a number of projects for banks, hedge funds and lending clubs. Most recently, we have conducted real-time fraud detecting for a major bank. Fraud costs financial institutions and companies billions of dollars per year.

By leveraging information across the web plus real-time data from social media (Hadoop + social), one of our online platform’s algorithms was able to automatically differentiate and classify fraudulent transactions from normal transactions, thus reducing security risks and operational costs.

Walk in the Shoes of a Financial Professional

Beyondsoft DayMicrosoft Main Campus Bldg 35/2615 - KalalochDate & Time  - May 20, 2016 @ 12:00 – 2:00 p.m