FinTech &

Emerging Technology

Assoc. Prof. Dr. Thanachart Numnonda

Executive Director,

IMC Institute

24 January 2019

Technologies Mega Trends

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Gartner Trends

  • Intelligent refers to how AI is seeping into virtually every technology and with a defined, well-scoped focus can allow more dynamic, flexible and potentially autonomous systems.
  • Digital refers to the blending the virtual and real worlds to create an immersive digitally enhanced and connected environment.
  • Mesh refers to the connections between an expanding set of people, business, devices, content and services to deliver digital outcomes.

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Serverless computing, AI, network agility, edge computing, the death of the data centre, new roles, SaaS denial, talent management and global infrastructure drive the Gartner top 10 infrastructure and operations trends for 2019.

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FinTech Definition

  • FinTech is a new value proposition applied to financial services:
    • New offering of financial products/services
    • New processes
    • New business models,
    • The intensive use of technology (SaaS,cloud,mobile,metadata,etc.)

Source FinTech : Digital Innovation in the Financial Industry” (07/01/2016)

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Fintech Technologies

  • Identity, privacy, Biometric, and anonymity
  • Blockchain and encryption
  • Big data and analytics
  • AI and automation
  • Smartphones and consumer tech
  • Open APIs

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New Tech has changed how startups are built

Source Kleiner Perkins - FinTech Trends 2017

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Layers of disruption in FinTech

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Layers of disruption in FinTech

Source: FinTech Industry Overview 2016, Sparklabs

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Source Kleiner Perkins - FinTech Trends 2017

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Disruptive Innovation

  • Disruptive technology
  • How fast the changes are?
  • Differences in country

Technology Innovations

  • Market regulation trends
  • Market adoption & innovation differences
  • Specific market discussion

Market Innovations

Source FinTech Disruptive Innovation, The Hong Kong University of Science and Technology

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Fintech Technologies

  • Bitcoin as a proof of concept of the possible
    • Blockchain
    • DLT and distributed authority
  • Digital Payment Leaders
    • Alipay => Cash to digital transform
    • Paypal in the west => Alternative to centralized clearing house

Source FinTech Disruptive Innovation, The Hong Kong University of Science and Technology

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Fintech Technologies

  • AI and low latency trading system
    • Roboadvisors & Algotrading
  • Smartphone and Apps
    • Phone as a bank
    • Branchless banking
  • Wearable teachnology
    • Payment

Source FinTech Disruptive Innovation, The Hong Kong University of Science and Technology

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Open APIs

&

Agile Development

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A new model for digital banking:

the Neo-APIBank

Source: The next 10 years in Fintech, Kantox

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Core banking platform + API Layers

  • CRM + KYC
  • Banking License

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Driver for API adoption in banking

Source: The Path to Open Banking, mulesoft

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UK Open banking

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What is open banking?

Source: Chances of open banking

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Source: FinTech Ranking

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Key characteristics

  • Customer centric
  • Modular technology platform
  • Strong data analytics capability
  • Agile operation
  • Open to partnership
  • Scalability

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More devices, more users

High scalability

More complex

Security

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Big Data Platform

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Mobile

IoT

Social Media

Transaction

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Technology

Data

Collection/

Ingestion

Data

Storage

Data

Analysis/

Processing

Data

visualisation

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Data

Collection/

Ingestion

Data

Storage

Data

Analysis/

Processing

Data

visualisation

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Big Data

as a

Services

Distribution

with

IaaS

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Big Data @

Source: Dr. Ren Wu, BaiDu, 2014

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Big Data Platform @

Source: Scylla Summit 2017: How Baidu Runs Scylla on a Petabyte-Level Big Data Platform

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Storage as a Service

Computing as a Service

Database as a Service

Hadoop as a Service

BI as a Service

Machine Learning as a Service

Big Data Service Models

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Big Data Service Models

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On-premise v.s. Public Cloud Services

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Banking is now a data business

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Financial Trails:

Personal details

Monthly income

Monthly expense

Transactional data

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Consumer not only deposit money to banks,

but also data

Source: FinTech Security and Regulation (RegTech)The Hong Kong University of Science and Technology

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Who own my medical diagnosis data?

Source: FinTech Security and Regulation (RegTech)The Hong Kong University of Science and Technology

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Some financial institution may use your data

Source: FinTech Security and Regulation (RegTech)The Hong Kong University of Science and Technology

  • For data analytics of consumer behaviour
  • For digital marketing
  • etc.

Consumer should have a right to

profit from their own data.

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AI Platform

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AI first World

Source http://www.investors.com/

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Deep Learning

Lion

or

Elephant

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Four Waves of AI Applications

Source: Kai-Fu Lee at AI Frontiers : The Era of Artificial Intelligence

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Five Premises of AI

Source: Kai-Fu Lee at AI Frontiers : The Era of Artificial Intelligence

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Source: Kai-Fu Lee at AI Frontiers : The Era of Artificial Intelligence

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AI Development on Cloud

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AI platform + openness lower AI barrier of entry

Source: Kai-Fu Lee at AI Frontiers : The Era of Artificial Intelligence

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For most applications, super AI experts not needed

Source: Kai-Fu Lee at AI Frontiers : The Era of Artificial Intelligence

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Thank you

thanachart@imcinstitute.com

www.facebook.com/imcinstitute

www.slideshare.net/imcinstitute

www.thanachart.org

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FinTech & Emerging Technology - Wealth - Google Slides