Increase in regulations, since the financial crisis of 2008, have put significant constraints on the ability of BFSI enterprises to innovate and adopt digital technologies. Evolving customer needs, pervasiveness of digital technologies such as cloud, social, mobile, IoT, and big data analytics, along with regulatory environment (e.g., Payments Services Directive 2) are fostering innovation. Proliferation of connected devices, significant enhancement in connectivity infrastructure, and advancement in technologies provide opportunity to create superior customer experiences. Legacy banking infrastructure and resistance to fundamentally change the traditional business processes has slowed down the ability of BFSI enterprises to respond to evolving consumer needs. All these factors have supported the growth of FinTech firms – startups in the financial services domain that leverage technology to create value for stakeholders in the financial services industry. The FinTech revolution is changing the dynamics of the competitive forces in the BFSI industry and provides customers with alternatives to traditional banking players for their financial needs.
This research
Attempts to identify how FinTech firms are disrupting the BFSI industry
Presents a framework to understand how FinTech firms create value for all stakeholders using digital technologies
Assesses the impact of technologies, such as big data, Artificial Intelligence (AI), Machine Learning (ML), and blockchain, on the future of FinTech
We use nine FinTech areas, including SME financing, rob-advisors, insurance marketplaces, and cryptocurrencies, as examples to explain how FinTech firms generate value and the business problems that they solve. We also provide an overview of the technologies used by FinTech firms and their business impact. This report also covers key trends in the FinTech landscape and an overview of how traditional financial services firms respond to the current wave of FinTech disruption.
Note: this report is from 2012. See our most recent R2R research report.
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