Financial Technology

Case Studies in Fintech Innovation

Niels Pedersen

• Publisher: Kogan Page
• Year: 2020
• Print ISBN: 9781789665437
• eBook ISBN: 9781789665444
• Edition: 1
• Topic: Business
• Subtopic: Finance
• Index: Business

Fintech continues to revolutionize financial services. Financial Technology shows you how to navigate this increasingly de-centralized, personalized and automated environment. This new textbook strikes a balance between academic depth and commercial relevance in examining the advantages and challenges of these changes through the lens of various analytical frameworks. Financial Technology demystifies key technologies, such as blockchains, APIs, AI, machine learning, and cloud computing, in a clear and accessible style suitable for readers with no technological background.Real-world case studies from a variety of international organizations including Lloyds Bank, TransferWise, Generali, Starling and Stocktwits, bridge the gap between theory and practice and contextualize learning in terms of real businesses, from large incumbents to smaller start-ups. With coverage of robo-advisors, mobile-only banks, open banking and risk and regulation, this book also explores a range of analytical frameworks to critically examine new technologies and emerging business models. Financial Technology enables readers to understand the fintech movement in the context of recent financial history, examine the key drivers of change and form insights about the financial system in a forward-looking and global manner. Online resources include PowerPoint slides for lecturers and additional case studies.

Index

Page numbers in bold indicate glossary items

Aadhaar digital identity initiative in India 227, 228, 240

Admiral insurance company 85–88

Adobe Photoshop, transition to a subscription model 35

affective computing 232

algorithms 240

Alipay 18

AlphaGo (Google) 79

AlphaGoZero (Google) 79

Amazon, 1-Click Ordering service 52

Amazon Echo, banking by voice with Alexa (case study) 223–24, 234

AML/CFT 240 see also anti-money laundering; counter-terrorism financing

anchoring effect 56–57, 240

anonymization and data security 167–69

anti-money laundering (AML) 240

cryptocurrencies and 205–07

procedures 205

APIs see Application Programming Interfaces

Apple HomePod 223

Apple iMessage app 61–62

Apple iPhone 53

Apple iPod 53

Application Programming Interfaces (APIs) 6–7, 228

API-based business models in financial services 7–9

role in Banking as a Service 36–37

artificial intelligence (AI) 240

autonomy and 78

bias in AI algorithms 93–94

‘black box’ problem 92–93

code of conduct 202–04

concept drift problem 93–94

considerations when using algorithms 92–96, 98

data monopolization issue 94–95

data protection issues 198–202

definition 77–78

discrimination related to AI algorithms 94

distinction from Big Data 80

distinction from machine learning 81–82

ethical issues 92–96, 98

fintech applications 76–98

history of development 78–79

Internet of Things (IoT) applications 225–26

lack of transparency in algorithms 92–93

machine learning and credit risk (Zopa case study) 95–96, 98

narrow vs broader AI 77, 78

natural language processing (NLP) 142

performance monitoring and recalibration 93–94

practical issues 92–96, 98

testing of algorithms 93

Turing Test 77–78

asset-backed cryptocurrencies 123, 124–26, 128

Global stablecoins (GSCs) (case study) 210–11, 212–13

Augur decentralized prediction market (case study) 152–53, 156

authority heuristic 175

automata 78

automation

fintech app...

Table of contents

• List of figures and tables
• About the author
• Foreword by Dr Karen Elliott
• Preface
• Acknowledgements
• Walkthrough of features and online resources
• 01 Networks, APIs and fintech banking platforms: How technology is decentralizing finance
• 02 Disruption and disintermediation: How financial innovation and cloud computing gave birth to the fintech revolution
• 03 Behavioural economics and experience design: How to optimize user engagement
• 04 Artificial intelligence and automation in fintech: AI and machine learning in practice
• 05 Bitcoin, blockchain and cryptocurrencies: The applications of distributed ledger technology in finance
• 06 Digitizing the price mechanism: The impact of automation and social media on financial markets
• 07 Financial crime, cybersecurity and risk management: Pitfalls and opportunities in fintech
• 08 Regtech and regulatory compliance: Financial regulation in a fintech context
• 09 Looking to the future: Optimization, decentralization and personalization
• Glossary
• Index