SATURDAY, 14 DEC 2019

 

CONNECT

Facebook Linked In Twitter
GAP_Group_2019_728x90px
Baker_Tilly_18/10-19/12_266x90px
IMH LTD

ECB Chief Christine Lagarde: I Want to Be the Wise 'Owl' Of Monetary Policy

Nicos Anastasiades Expresses Full Appreciation for EUCO Conclusions On Turkey

IMH LTD
GAP_Group_2019_468x60px

BUSINESS

brought to you by Deloitte

Cdbbank: Fintech and The Future of International Banking

Cdbbank: Fintech and The Future of International Banking

In the area of International Banking, fintech is one of the most exciting and topical areas in global business today. The emergence of a new generation of financial technology has, in a short time, had a considerable impact on how to do business, transact as customers and think about the financial future. Investment in the sector, according to a study by KPMG in 2017, is over US$100 billion and it continues to grow.

In the past couple of years, relationships between banks, fintechs and bigtechs are evolving rapidly, while it is becoming more evident that, despite the initial caution and mistrust, all players need to use each other’s core competencies for International Banking to grow correctly. 

But what is driving this innovation in the financial services of International Banking?

Some key points are: 

The lower barriers to entry because of new customer access methods, such as the mobile phone replacing the retail bank branch. 

Affordable infrastructure, such as analytics, artificial intelligence, cloud computing and social technologies. 

New currencies and credit systems affecting incoming banking and investment players and changing consumer behaviour and expectations from financial services providers.

 

Fintech has also, created a space for financial inclusion, another major turning point, leading to the rise of emerging markets. Because of mobile internet access, consumers who previously could not access financial services can now do so via their mobile phones, resulting in opportunities for fintech start-ups to capitalise on the emerging markets in the global south (Africa, Asia, and South America). Combined with the rise in international challenger banks, this means that a major source of revenue for traditional banks will be significantly affected in both emerging and traditional markets.

How is International Banking Affected? 

International Banking will be affected in four key areas.

(1) How the future of money will be shaped through Distributed Ledger technology (known as blockchain) and digital currencies, such as the Central Banks Digital Currency project which will impact deposits, bitcoin and ripple as well as peer-to-peer transfer technology and mobile banking.

(2) The future of markets. Pervasive mobile and social technology and the emergence of new network-enabled markets are changing the financial services industry drastically. Among others, this can be seen through prediction markets and collective intelligence, peer-to-peer crowdfunding and equity funding, artificial intelligence, automated advice and wealth management.  

(3) The future of marketplaces. Traditionally marketplaces have been one sided; today, however, there are many examples of two-sided marketplaces, e.g. peer-to-peer lending, as well as new marketplaces such as financial services for the unbanked and SMEs. Some of the current trends in marketplaces include the app Marcus by Goldman Sachs, allowing a traditional Investment Bank to enter the retail market, and Revolut entering the lending market, new payment platforms, mobile, financial inclusion, blockchain and the marketplace stack. 

(4) Last but not least, infrastructure: the system that enables the movement and regulation of transactions in the financial services space, which has been radically altered by technology. Traditionally, banks controlled the transfer of money and related processes. However, because of recent technological innovation, there are faster and better ways for people to transact. Key areas are improvements in identity, security and privacy, cybersecurity and regulatory technology (Regtech). Also, converting laws into code and sharing it between banks across special platforms is paving the way for faster compliance checks.

Nevertheless, the biggest competitor to International Banking is not fintech, but the legacy core banking systems. In this customer-driven environment, the future is about fintech and banks joining forces to benefit from each other. 
Many forward-thinking International banks, financial incumbents and other large organisations have begun to develop strategies to foster innovation and remain relevant in the face of the uncertain future of financial services.

 

 

 

MORE ON BUSINESS

PwC Cyprus - Career Presentations & 'Gala Dinner' in London

Between 11 and 22 November 2019, PwC Cyprus held a series of presentations on career ...

GOLD Magazine: Made in the USA

US popular culture and consumer products are everywhere and, like almost every country in ...

EY: Innovative Digital Solutions for Energy Industry Built On Microsoft Azure

EY announces the launch of two digital solutions built on the Microsoft Azure cloud ...

FROM AROUND GOLDNEWS

   

Land Units and Plots Across Cyprus for Sale by GoGordian

GoGordian, leader in the real estate market, launched its “Go Land” campaign to promote its various land units and plots for sale across the island. ...
   

Natasa Pilides Included in Lloyd’s Top 10 Influential Women in Shipping List

Following the example set by the International Maritime Organization with this year’s Maritime Theme of “Empowering Women in the Maritime ...
   

Aristo Developers Adds Paradise Gardens in its Portfolio

With its sustainable expansion strategy drive, and delivery of new development projects, Aristo Developers enriches its real estate portfolio with the addition ...
   

Bentley Opens New Showroom in Cyprus

Bentley Motors has announced the opening of a new showroom in Limassol, Cyprus. The first Bentley showroom in Cyprus is situated at the most southern point of ...
   

PwC Cyprus - Career Presentations & 'Gala Dinner' in London

Between 11 and 22 November 2019, PwC Cyprus held a series of presentations on career opportunities for students attending university in the United Kingdom as ...
   

Government Employment by Category

In November 2019 total government employment increased by 445 persons (0,9%) in comparison to the corresponding month of 2018 and reached 52.504 persons, ...
   

UNGA Adopts Resolutions On Oceans And Seas, With Turkey Being Only UN Member State Voting Against

The UN General Assembly adopted on Tuesday two resolutions on the oceans and seas linked to implementation of the landmark 1982 United Nations Convention on ...
   

Nicos Anastasiades Expresses Full Appreciation for EUCO Conclusions On Turkey

The CNA reported that President of the Republic of Cyprus Nikos Anastasiades expressed his full appreciation for the European Council (EUCO) conclusions on ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

CYTA_Forex_01/11-31/12_300x250px
GloriaJeans_300x250px

IMH LTD