Introduction: Risk Management and Financial Technology: Disruption, Obsolescence, Transformation
Fintech and Blockchain
Market Exposure to Fintechs: Too Risky?
Statistical Machine Learning Analysis of Cyber Risk Data: Event Case Studies
Cyber Regulations and Compliance Considerations
The Governance of Strategy and Strategic Technology Risks
Scaling Risk Management for Success
Fintech, Risk Management and Emerging Markets – a Case Study
Economic Drivers of Electronic Payment Systems in Developing and Emerging Markets
Brexit, Fintech and Risk Management for the Financial-Services Industry in the UK and Europe
Cyber-risk Quantification of Financial Technology
Understanding Cyber-Risk and Cyber-Insurance
INTRODUCTION AND MOTIVATION
It is very curious that attitudes expressed by banks towards fintechs have changed markedly since the mid-1990s, and particularly, since the 2008 financial crisis. Back in the 1990s, a bank would listen politely to any small company trying to market a financial product, but any attempt to sell that product would get no further. Now, it appears to be the height of fashion to encourage and embrace fintechs. The way in which they align with traditional banking services, on both the consumer and institutional levels, is being examined ever more closely.
It is not difficult to rationalise this. Fintechs compete with banks. They offer products and services that often undercut similar products and services that the banks offer, and can also offer new products and services. Banks are large, inflexible, institutions and are mostly very conservative. With increased competition, banks are forced to take fintechs seriously to enhance their competitive positions and retain market share, and the fintechs are taking advantage of that.
This chapter is an examination of what is perceived as an increasing exposure of traditional banking institutions to fintechs.