Technology: Disruptive Innovation in the Financial Industry

Technology is reshaping the financial landscape and the relations between financial firms and its customers. After some breakthrough innovations as credit/debit cards, online payment systems and the digitization of trading, innovations in Financial Technologies, known as FinTech, bring innovative solutions for financial services. 

Read the full report on Finance & Innovation in New York to learn more about:   

 

Cash a check from you mobile phone

Cash a check from you mobile phone

  • New trends in FinTech
    • Mobile & online banking: With the rapid growth of smartphones/tablets market and the high-speed 4G infrastructure, the access of mobile financial services becomes a must for more demanding customers. 
    • Social media and Financial services: Some start-ups try to make financial services more interactive, intuitive and social by analyzing and using social data to build new market and trading opportunities. 
    • Big data: Having a high volume of data is not sufficient. The challenge is how to go beyond big data and create knowledge, not only by explaining what happened, but by being able to predict what will happen and finally by figuring out how we could make it happen. 
    • Virtual currencies: A digital currency is a medium of exchange like traditional currencies, but intangible - without a centralized control and created by an algorithm. Some people consider it as the next safe haven - the “gold 2.0". Conversely, experts say Bitcoin is too young, too volatile and not secure enough to become a regulated currency. 
    • Insurance sector: Smartphone applications, aggregated data bureaus and the use of telematics by smaller carriers are new technologies that will enter the industry in 2014 and will be more commonly used, according to reports released by Deloitte Center for Financial Services. 
  • The leading figure of New York in FinTech: Wall Street is the world’s financial epicenter. New York leadership in finance and banking has enabled the emergence of new ventures in information technology and led New York-based firms to be early-adopters of innovative solutions in FinTech.  The FinTech Innovation Lab is an example of initiative born in NYC to gap the differences and foster the FinTech ecosystem. This annual program incubates the most promising start-ups offering innovative financial products or services. So far, the companies that graduated from the program have raised $47M and created 150 jobs since 2010. Watch the interview of Maria Gotsch, telling us more about the program and the need to bridge finance and innovation.
  • The FinTech investments landscape: The emerging trends described have increased the interest of venture capitalists for customer-oriented products and services in financial technologies. According to the CB Insights report, FinTech startups in New York have raised around $800M since 2008, with $450M only for the 2013 period. The rise of cloud computing and big data management reshaped the landscape with a more harmonious allocation of overall investments. The upward trend of mobile devices and cloud computing suggests that data analytics and personal finance management will keep growing and attract investors.
  • FinTech in Switzerland: Representing 10% of the GDP, the finance industry is a pillar of the Swiss economy. Discover what are the connections between the historically-strong finance industry and the Swiss start-up scene and other initiatives. 

Please contact Joanne Bolens at joanne@swissnexboston.org for further information on the report.