Alongside “unicorn” and “grexit/ brexit,” “fintech” was named one of the top-ranked financial buzzwords of 2015. Although this nifty acronym definitely sounds new and novel, the concept of fintech is anything but.
In most conversations fintech has been associated with millennials who want the empowerment to conduct all of their business on their mobile devices. But the fintech industry encompasses a much larger demographic and growth sector for both traditional financial services players and broader web companies.
Robo-advisors that can provide wealth and portfolio management based on algorithms and shared personal data, for example, are proving effective for investors of all ages, while apps like Venmo and Prosper are fueling an increasingly cashless society. By removing some of the face-to-face and material constructs of banking, fintech is powering innovation in an industry that for generations has been regulation-heavy and dependent on the human element for customer experience.
Fintech investment benchmarks are being toppled in the world’s largest financial markets year-over-year. An all-time-high investment of $12.5 billion went to fintech in 2015, and with records being broken in Asia and the United Kingdom where there were $4.5 billion and $901 million worth of investments respectively.
In February 2016, the Consumer Financial Protection Bureau (CFPB) released an official policy paper that defined how it will address new tech-driven financial products as they come to market. The CFPB outline agreed to hold off scrutiny for the time being as these new services and platforms get off the ground. But they also recognise that regulations, similar to the rules and standards applied to dominant legacy financial services, could be applied should fintech become just as prolific.
At FinDEVr 2016 in New York City, being held on March 29 and 30, this discussion will go several steps further. We’ll see financial giants and comparatively young fintech companies sharing space to discuss what changes are coming and how all parties involved will benefit – including the end customer.
For the second year in a row, I’ll be presenting on behalf of Interxion alongside fintech company Sayula to demonstrate how our highly connected Finance Hubs help create new business ventures between fintech firms and investment companies. In the case of Sayula, specifically, we’ll discuss how being connected to our Financial Hubs and Cloud Hubs help amplify their services to overcome European market constraints around data and infrastructure.
Be sure to join us at this year’s event to learn more about how major banks value solutions that allow non-IT users to create new financial models by seamlessly conjoining existing data sources, analytical libraries and models.
More than just buzzing, fintech may be the hottest topic in finance