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, which 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 app through FusionFabric.cloud.
FusionFabric.cloud is architected in the cloud.
It connects to the Finastra 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 FinTechs built fantastic core applications
that serviced retail banking, lending, treasury, and capital market payments;
however, going forward, initiatives like FusionFabric.cloud would build 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 organization's clients - 90 of the top 100 banks in the world - use their technology.
This collaborative relationship 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.