Hundreds of reports, news articles, startup tickers and interest groups from Singapore, across London to Boston are talking about the “FinTech Ecosystem”. Why has a vegetational concept originated from botanical literature become the place to be for companies seeking innovation? What makes up this cradle of life and who resides there? Is there a way to cultivate this El Dorado? And how is it that low failure and risk tolerance prove to be a barrier for new FinTechs in Switzerland?
Background
In the previous article, we considered the client on-boarding process; in this second part, we will focus on the sales/advisory process. We will explain which machine learning (ML) models can be applied to which parts of the process. This is not an exhaustive view of the possible options and is meant as an opening to further discussion.
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Background
There is a lot of buzz around artificial intelligence (AI) and machine learning (ML) and their application to financial services; specific examples include use cases applied to chatbots, robo advice, and credit risk scoring. Almost daily, articles are published focusing on specific functional areas, but do not address the potential of machine learning from an end to end perspective. This is the first of two lists whereby I document use cases by process area and potential use of ML algorithms and techniques. This initial list outlines AI and ML application to client on-boarding processes for new clients or for new products.
The Swiss Finance + Technology Association has signed a Memorandum of Understanding with the Fintech Association of Hong Kong (FTAHK). This further strengthens the collaboration between Asia and Europe. In practice this means that the two organisations will join each others’ events and they will exchange knowledge about the market and regulation. New opportunities for start-ups and investors of both countries will be created.
In my first post, I wrote about how we are constantly hearing buzz around the ‘war being over’ between FinTechs and banks. The case for symbiosis and coopetition over competition between the Davids and Goliaths is certainly strong; so strong that 82% of banks, insurers, and asset managers are planning on increasing FinTech partnerships over the next three years (PwC, 2017). That said, I also questioned the success of FinTech-bank partnerships in delivering true value for the bank, the start-up, and/or the customer.
There is no denying that there have been some highly successful partnerships to date. However, there is also no hiding from the fact that many of the ‘partnerships’ we hear about have been used to drive marketing and PR efforts while many have simply not delivered the intended value and have been brushed under the carpet.
The last 18 months has seen a diffusion of FinTech away from the core hubs in London and California. More countries and cities are vying for the opportunity to build up and further develop eco-systems that foster and promote FinTech.
Below you find an article about Fintech Ecosystems and the use and abuse of vegetational concepts. It can take some seconds to load as it has interactive charts in it.
On September 26 we had a great event in the Nietturm Bar with senior representatives from Abu Dhabi Global Market. Steve Barnett and Thomas Hirschi presented their organisation and explained the FinTech Regulatory Laboratory (RegLab). The audience was very interested in the FinTech ecosystem in Abu Dhabi and there were many questions in the end.
The Swiss Finance + Technology Association (SFTA) has signed a Memorandum of Understanding with the Singapore FinTech Association (SFA). This means that the two organizations will work closer together in the future to improve financial innovation in both markets. In a first step, a delegation from SFTA will visit the Singapore FinTech Festival in November. Beyond this, further collaboration is planned to create new connections and share knowledge between the FinTech ecosystems of Switzerland and Singapore.
Insights
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