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Blockchain, Cryptocurrency, and The Future FinTech

Toronto_2, Canada
(Toronto, Canada - Wei-Jiun Su)


Embracing Disruption



- Future of Financial Services

Financial services must harness the power of technology to transform and grow at scale and speed, while meeting the growing expectations of the customer of the future. Financial technology, or FinTech for short, is one of the most exciting - and fastest growing - areas in global business today. 

While the definition may be simple, products and companies that employ newly developed digital and online technologies in the banking and financial services industries, how it is used, and its impact on consumers is much more complex. In fact, in a relatively short period of time, the emergence of a new generation of FinTech has greatly impacted how we do business, transact as customers, and think about the future of finance. 

Among other things, it is significantly blurring the lines between business services, allowing bankers, advisers, and technology providers to provide nearly identical services.

Financial technology (FinTech), an economic industry composed of companies that use technology to make financial services more efficient, is usually applied to the segment of the technology startup scene that is disrupting sectors such as retail banking, lending and financing, payments and transfers, wealth and asset management, markets and exchanges, insurance, blockchain transactions, etc.. It refers to new applications, processes, products or business models in the financial services industry. 

However, the FinTech term has started to be used for broader applications of technology in the space – to front-end consumer products, to new entrants competing with existing players, and even to new paradigms such as Bitcoin. The financial services industry is one of the last frontiers new technology has yet to fully conquer. FinTech companies are trying to disintermediate incumbent financial systems and challenge traditional corporations that are less reliant on software. 


- Emerging Technology in Financial Services

From customer service chatbots to software robot bankers, disruptive digital technologies like artificial intelligence (AI), robotics, and blockchain are changing the financial services industry.

Financial services companies are using AI in a wide range of settings. Along with the customer service chatbots mentioned above, they’re also deploying AI to automate loans and insurance underwriting. 

Robotics encompasses a broad spectrum of technology and, according to the survey, it’s making deep inroads into the financial services industry. Robots come in many forms, from physical devices such as customer service robots in retail settings to software robots that take the controls of business applications. Software robots are part of the growing field of robotic process automation. 

Blockchain is at the forefront of emerging technologies that financial institutions believe could profoundly impact the way they do business. Many financial institutions are using blockchain to build a variety of platforms—such as payments and trade finance—and are beginning to engage with established cryptocurrencies.


- Future of Financial Technologies

FinTech is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. Financial technology companies consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.

Internet-based technology has made it cheap to collect information and to network. This has empowered the sharing economy and allows FinTech companies to seize intermediation business from banks. But both FinTech and "sharing economy" businesses manage information centrally – they serve as middle-men – exactly as traditional financial institutions do. The FinTech revolution is forcing the financial services industry and everything it touches to evolve quickly.  


- Blockchain: Disrupting the FinTech

While FinTech disrupts banks, the blockchain disrupts FinTech. Blockchains are a very powerful technology, capable of performing complex operations. The distributed ledger technology that underpins blockchain systems is designed for near real-time transfer of data. It can deliver instant resolution to customers' transactions and interactions with their banks. Blockchain technology allows for the entire financial services industry to dramatically optimize business processes by sharing data in an efficient, secure, and transparent manner.

Blockchain plays a critical role in fraud reduction. The technology facilitates the use of smart contracts to support storage of any type of digital information. Moreover, implementation of blockchain in digital payments could prove to be highly transformative in the payments space.


- The Competitive Fintech Influencers For 2020 and Beyond

The following ten fintech influencers for 2020 and Beyond:


  • FinTech will drive the new business model. 
  • The sharing economy will be embedded in every part of the financial system. 
  • Blockchain will shake things up. 
  • Digital becomes mainstream. 
  • “Customer intelligence” will be the most important predictor of revenue growth and profitability. 
  • Advances in robotics and AI will start a wave of ‘re-shoring’ and localisation.  
  • The public cloud will become the dominant infrastructure model.  
  • Cyber-security will be one of the top risks facing financial institutions. 
  • Asia will emerge as a key center of technology-driven innovation.  
  • Regulators will turn to technology, too.  


 - Increasing Ransomware Attacks

Monetization is another key factor contributing to the rise in cyber attacks. In the past, it was difficult for cybercriminals to profit from attacks, but that has since changed. Now, cybercriminals have increasingly turned to ransomware attacks, or those in which attackers gain access to and encrypt a victim’s data and demand a ransom. 

Cryptocurrencies and the emergence of ransomware have made it easier for someone to commit a crime and get away with it because they can get paid in untraceable ways. There’s also [the anonymous communication software] Tor, which makes it easier to anonymize threats. This trend has motivated attackers to commit cybercrimes in pursuit of monetary gain while simultaneously making it more difficult to track and identify these criminals. As a result, the need for skilled cybersecurity professionals who can implement strategies to prevent these attacks continues to rise.



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