Hello and welcome to this talk on
financial innovation and more specifically, on the future of FinTech.
I'm Professor Anne-Laure Mention the Global Business Innovation
Enabling Capability Platform Director at RMIT University.
Let me start by defining what financial innovation is.
In its simple terms,
financial innovation refers to the creation of
new financial assets or new ways of using existing financial assets.
It is also a broad term that now encompasses several products, processes,
institutional and service innovations,
such as the ATM,
mobile banking, and securitization.
FinTech in the broader context of financial innovation
is an umbrella term used to describe
innovative technology-enabled financial services business models.
FinTech is inducing a paradigmatic shift in how
financial service firms deliver
pecuniary and non-pecuniary benefits to interacting parties.
The US Financial Stability Board defines FinTech as
technology-enabled financial innovation that could result in new business models,
applications, processes, or products with
an associated material effect on financial markets and
institutions and the provision of financial services.
The world of FinTech is diverse and covers multiple segments,
such as payments, insurance, deposits, and lending.
I will now run through a few FinTech cases.
Finastra is a great illustration that showcases that accelerating innovation to
the end-client comes when you bring uncommon partners to the table and you work together,
collaborate, and learn from each other.
You then get unexpected outcomes and creativity increases exponentially.
This type of collaboration is only possible in an open platform-led organization.
Finastra's own journey is to build a platform ecosystem out through FusionFabric.cloud.
FusionFabric.cloud is architected on the cloud.
It connects to Finastra's core application
and makes that data available to third parties to
create applications that create
meaningful insights or meaningful customer journeys to end clients.
In the past, financial services companies and even early
FinTech's build fantastic core applications that service retail banking,
lending, treasury, and capital market payments.
However, going forward, initiatives like
FusionFabric.cloud would be the bridges with the FinTech community to openly
collaborate and create an ecosystem that is
powerful in the combination of players that can come
together and create rich new experiences for clients and the customers of clients.
Organizations such as Finastra enable big companies to innovate faster.
Many of the organizations' clients,
90 of the top 100 banks in the world use their technology.
These collaborative relationships, facilitated by Finastra's platform means that
the global FinTech is not limited to
its own R&D capabilities and developer capabilities anymore.
They are now reaching out to the open community and encouraging
them to bring their innovation and talents to help the large banks.