The financial technology space, or fintech as it’s more commonly known, is burgeoning with no signs of slowing. Since some of the early innovators, like PayPal and Square that introduced new ways of paying for goods and services, fintech has evolved into other areas like advisory services, lending, and wealth management, to name a few. And much of this innovation is being led by one thing: creating a better customer experience. In their recent webinar, “How to Thrive in the Fintech Revolution,” Scott Williams, director of software development, and Raphael Hyde, product designer at Tallwave, explore how fintechs are disrupting the industry, the advantages and disadvantages of this emerging technology, and where the industry is headed. https://vimeo.com/201073282

1. How to Thrive in the
Fintech Revolution

2. What is fintech?
Fintech (financial technology) generally refers
to emerging ventures applying technology to
solve a problem in the financial industry.

3. 3
Examples Include:

4. Fintechs are innovating and changing the way we
lend and borrow money, pay for goods and services,
and transfer funds between accounts and overseas.

5. 5
17.6% 16.7%
7.7% 5.6%
MONEY TRANSFER /
PAYMENTS
SAVINGS/
INVESTMENT
INSURANCE BORROWING
• Use of non banks to transfer money
• Online foreign exchange
• Overseas remittances
• Online stockbroking/spreadbetting
• Online budgeting/planning
• Online investments
• Equity & rewards crowdfunding
• P2P
• Car insurance using telematics
• Healthcare premium aggregators
• Borrowing via P2P websites
Most Used Fintech Services

6. Growth doesn’t show signs of slowing.
Investment in fintech is projected to
remain strong… and so is the demand.

7. 7
According to a report published by KPMG and CB
Insights, fintech funding reached $2.9 billion in the
third quarter of 2016 alone. And bank spending on new
technologies in North America alone is anticipated to
increase to $19.9 billion this year.

8. What’s driving the massive growth
and adoption in fintech?
Customer experience and a strategic view of APIs.

9. Technology has changed
the way consumers do
things and many of the
legacy systems behind the
financial services industry
have failed to adapt to the
evolving customer need.
Automation
Personalization
Self-Education
Peer-to-Peer Transactions
Convenience

10. Adapting to the new
customer journey
Today’s successful fintechs are simply more in tune to
the needs of today’s consumer. According to a study
by EY, 43.4 percent of respondents said they use
fintech products because of ease of use.

11. 11
On the commercial side, fintechs are enabling
other financial services companies and other
organizations to expand service offerings.
Bookkeeping + Lending
Market Data + Funds Transfer
Employee Benefits + ACH
Automated Verification + Budgeting
Advisory + Investments

12. 12
Much of this is being fueled by
the API revolution.
APIs, application programming interfaces, enable
digital transformation and rapidly deliver
convenience to customers.

13. In financial services specifically,
APIs are completely transforming
the industry.

14. 14
A robo-advisory and online clearing
firm. Apex APIs enable users to enter,
review, and settle account transfers
between financial institutions.
Used by: Wealthfront, Betterment, Robinhood, Stash, and Personal
Capital.
Notable APIs
An all-digital, German-based bank, with
fidorOS, a suite of more than 40 APIs for
digital banking.
Used by: Countless fintechs and banks for banking, payment
processing, card and user management, sign-on and identification,
loyalty and rewards management, money transfer, lending, and the list
goes on.

15. 15
A wealth management platform with
more than 43 APIs.
Used by: Betterment, Wealthfront, Yodlee, Personal Capital, and
NASDAQ, NYSE Technologies, and Direct Edge.
Notable APIs
Enables applications to sync with their
users’ bank accounts to track and
manage their budgets, and transfer
funds.
Used by: Venmo, Gusto, TransferWise, Charity Water, Robinhood, and
Level Money.

16. 16
A payment platform known for its ACH
API that enables peer-to-peer funds
transfer between various banks.
Used by: numerous fintechs like Kill Bill and others to facilitate
payments.
Notable APIs
A payment solution with a series of
open APIs for managing one-time and
recurring ACH, automate tokenization,
e-commerce, mobile payment
processing, and secure redirect
payment.
Used by: Organizations in e-commerce, education, travel, medical, and
other sectors.

17. What’s next?
What’s needed to thrive in the fintech
revolution? And where do opportunities exist
for those looking to break into the world?

18. Collaboration, Technology & Design,
Customer Experience

19. 19
Collaboration: APIs that enable greater
collaboration and integration of services will
continue to grow in the shared economy.
“APIs that can sit in the middle of those who provide capital and
those who have access to the customer can be very successful.
This is where I see a big opportunity for fintechs.”
~ Joe Carella, assistant dean, Eller Executive Education, University of Arizona.

20. 20
Technology & Design: Blockchain, mobile payments,
artificial intelligence, and product design will
continue to guide the future of fintech.
“The primary driver of fintech innovation in the consumer space is
around very targeted product design. It’s less about any specific
emerging technology and more about targeted product design and
looking for gaps in existing offerings.”
~ Chris Curran, principal and chief technologist for PricewaterhouseCoopers US.

21. 21
Customer experience: At the root of fintech
innovation is the customer experience.
Emerging fintech players are gaining traction with consumers,
particularly millennials, because they believe these fintechs are more
intune with their needs than the traditional financial institutions.
While technology is a big component, customer experience is the
foundation underlying fintech success.

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