8 trends that will reshape the fintech landscape in 2019 - Open Banking - Blockchain - ML - Lending - RPA - Personalization - Cloud - Security

1. 8 Trends
“that will reshape the FinTech landscape in 2019“
Dec’ 2018
Umesh Kolhe

2. Trends 2019
Agenda
What is FinTech?
Why it Matters?
Open Banking
Blockchain
ML
Lending
RPA
Personalization
Cloud
Security
Q&A
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3. What is FinTech?
“Fin” part in FinTech stands for Financial services and “Tech” is for Technology. Together it meant to “design
and deliver the Financial Services through the innovative use of technology”.
• Traditional bank were reasonable with the use of technology.
• Got busy with the rules, regulatory and compliances, neglected the tech.
• Innovation boomed in technology sector (smartphones, uber, whatsApp ans so on).
• Impacted our lives profoundly.
• Fundamentally changed the way we interact with these services.
• Major shift in expectations for the end-user experience and convenience.
A clear gap was formed between what traditional banks are offering and what consumer are expecting.
FinTech today is the bread of new solution and services addressing that gap.
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4. Why It Matters?
“People need banking. They don’t necessarily need banks.” ~Bill Gates
• Non-finance and technology companies such as PayTm, GPay, Lendingkart and so on addressing the
gap.
• Financial landscape is evolving and changing on an unprecedented pace. A new banking model is
evolving in which traditional banks are on backend and frontend is for FinTechs.
• Banks must have to evolve. Some will succeed, but many will not.
• Estimated 30% of banking job will disappear in next 10 years.
• New jobs will demand a completely different skillset, understanding of tech and creative thinking to
leverage it.
It matters to not just the big financial institutions or banks, but an individual too who is in midst of all this.
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5. Trends
Open Banking
Blockchain
ML
Lending
RPA
Personalization
Cloud
Security
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6. Open Banking
Before
After
Shared financial information available with multiple financial institutions/services
providers.
A great example in India is UPI (unified payment services).
• almost all the major banks under one umbrella.
• open up the system to the third party solution providers.
• a very simple and secure process.
• delightful customer experience.
In year 2019 it should open the door for multitude of services such as:
• easier comparison of services, thus promoting healthy competition.
• lenders gets better view of consumer’s financial conditions, usage pattern,
financial behaviour.
• small business gets benefitted as they can be easily assessed for business loan
or a credit line.
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7. Blockchain
Concept of banks originated around 13th century.
• simple, all about maintaining records in the bank’s central ledger
• cheques and drafts enabled money transfer
• multiple ledgers, multiple entries for single transaction
• slow process and costs
Unfortunately that pretty much is same even today. Nothing much changed in 700 years.
Blockchain is however has potential to change it for all good.
• decentralized ledger
• one ledger, one entry
• each transactions gets verified by all
• fast, save resources and cost.
It not as much of technology but is a philosophy.
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8. ML
ML stands for Machine Learning.
• branch of Artificial Intelligence (AI).
• uses algorithms and statistical models to
learn from data.
• learn without being explicitly programmed.
ML is a big deal for Financial Institutions.
• image recognition for KYC
• chatbots
• fraud detection systems evolving from the
static rules to dynamic neural network
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What makes it special?
• It will detect change in the data patterns and tune the model by
itself. You do not need data scientist to keep tuning the model.
• When the data quality is not perfect, it can actually still create
meaningful insights for business to make decisions.
• When the data is coming we do not need to store, process and
transform it before we can create analytics. It can just stream
through the neural network and the AI engine can pick up the
pattern and help the businesses to serve customers.
• It can handle unstructured data, therefore AI can be applied in
places like image recognition or voice recognition.

9. Lending (p2p)
Lending is an ages old tradition.
• Banks formalized it.
• A parallel system of lending is also exist, but unstructured.
Typically one goes to bank when in need of a loan. Bank may choose to provide or reject. Interestingly at the
same time there are customer who wants to deposit money in bank, but not happy with the return getting on it.
p2p Lending is all about connecting these two individuals in an environment which can leverage their experience
and need better than the traditional ways.
• allows one to lend money with better returns to the other in need.
• based on the information available and loan requirement these platform prepare credit worthiness to facilitate
loans.
• one or more lenders can get engaged on platform for single lending.
• some example: fair cent, lending kart
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10. RPA
RPA stands for Robotic Process Automation.
• a virtual workforce
• software robots
• carry out repetitive processes.
• uses latest tech like OCR, ML.
• adhere to regulatory, rules
• efficiently undertaking processes like KYC, AML
• work 24x7
Once automation processes are streamlined it operates at a
100% quality rate. Leave room for humans to cater strategic
priorities.
Saves Cost, improves turn around time and improves
accuracy.
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If you not using RPA, then as a business leader you have lost the competitive advantage and as a employee your
job. You just don’t know yet.

11. Personalization
Customers today expect to be treated as individuals and not as broad demographic
segments
• each customer is different
• deliver offers and rates that are relevant to each individual.
• banks already know a lot about it’s customer.
• transform data into insights that are predictive, personally relevant and useful.
predictive personal finance advise
custom loan offering
and so on
Today’s tech provides capability to build real-time self-learning models which can
result to best possible contextual experience for customer with each interaction.
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12. Cloud
Cloud computing is the delivery of computing services such as servers, storage, databases, networking,
software, analytics and more over the Internet “the cloud”.
Three main types:
• Software-as-a-service (SaaS)
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
Why Cloud Computing?
• Reduces costs
• Easily scalable
• Improved efficiency
• Flexible
• Agility
• Enables new-gen services
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The sky isn’t the limit; only the beginning

13. Security
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As financial industry growing with FinTech, it is attracting a lot of negative attention and constantly in
cross-hair of cyberattacks. So security is the uttermost priority.
Fortunately FinTech is flexible enough to adapt different methodologies and swiftly.
Security trends:
• Biometric: Access to our accounts required a fingerprint, face, or even your voice. Hacking
accounts would become much harder and fraud next to impossible. Besides it will also makes
logging in easier and faster.
• Behavioural: Our behaviour provides unique markers. And algorithmically can be used to secure.
• Decentralization: Keeping things in the open/transparent is another essential method for staying
safe. For example blockchain is virtually impossible without the collective efforts of everyone on
the chain, but secure as hell.

14. Q&A
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15. Thanks
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