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Anti-fraud, RegTech Among Top Investment Targets: FinTech Survey

The Center for Financial Professionals released the FinTech Leaders Report 2019, which indicated anti-fraud, RegTech and payments are the top investment priorities in the sector.

The research included independent, industry-led insight from a board of more than 60 experts. According to the Center for Financial Professionals (CeFPro), the survey took into account more than 850 end-user observations from the center’s pool of technology, finance, operations compliance and risk professionals.

Lindsey Burik, CeFPro FinTech advisory board member and the head of electronic trading at Mizuho Securities said practical implications of financial technology are an important factor in determining what direction the industry will go. "One of the biggest challenges in the FinTech space as a consumer is sorting through what is available, how it is used, and ultimately answering 'how will this help me?' I think the CeFPro research will bring some straight-forward clarity and expertise the industry needs," she said in a statement.

Digging Deep with Analytics

While investment in anti-fraud and RegTech are rated as ripe for productivity, artificial intelligence (AI) and advanced analytics were seen as the most critical to financial institutions. AI, for example, is considered not merely paradigm-changing technology but, “a matter of survival.”

“Traditional financial analysis gave a good overview of the profitability of a business and its different costs in the past and in the present, but not in the future. They did not have any predictive power. Uncertainties could not be assessed correctly and risks could not be managed correctly. Machine learning algorithms are filling this gap”, said Assad Bouayoun, CeFPro FinTech advisory board member and senior XVA quantitative consultant at HSBC global banking and markets.

The organizations surveyed also weighed in on what fintech features will be the most important benefit going forward. “Increased responsiveness to changing demand/technology/competition” was rated by 77% of participants as a “very important” or “important” benefit of fintech. “Enhanced reputation as an agile, innovative firm” ranked below “enhanced customer experience,” “reduced costs” and “increased revenues."

“Financial services companies should be looking to utilize FinTech to enhance the customer experience. Given the continued commoditization of the business offerings within the industry, it is becoming more important to differentiate the customer experience, pricing and benefits for our customers,” said Joshua Kotok, CeFPro FinTech advisory board member and chief risk and compliance officer at First Savings, in the report. “Within the industry, new banking and lending entrants are using technology to simplify account opening, speed the time and ease of obtaining a mortgage or even managing and visualizing investments.”

The full report is available at: www.cefpro.com/regportal-ft-leaders.

Swiss Banks Wane as Fintechs Surging: Report 

Evidence of fintech growth is coming from seemingly every corner of the globe. Report after report has quantified its development. Recently, another report, this one published from SwissBanking, shows the fintech sector in Switzerland soaring as traditional banks are “stagnating.” 

The IFZ FinTech Study 2019, prepared from the Lucerne University of Applied Studies, covers how the industry evolved in 2018, and the sector’s impact on traditional banks. “Per the report, the Swiss fintech sector showed significant growth in 2018. With 356 active companies by the end of the year, the industry reportedly grew by 62%,” reports Cointelegraph. “The sector reportedly registered larger venture capital transactions, although the market for cryptographic assets was subject to a significant correction.”

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