FinTech opportunities and challenges

Stephen LangleyHong Kong Computer Society

FinTech Special Interest Group Committee

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Agenda• What FinTech is & why now• Financial sector disruption• What is getting funded• Some thoughts on Blockchain• Robo Advisory• Regulatory sandbox• Challenges• References• Hong Kong Computer Society – FinTech Sig

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What is Financial Technology? Now enabled / driven by:• Pervasive Internet• “Big Data” and B.I. / Analytics• Consumer adoption of new

technologies e.g. Facebook, Google• ‘Cloud’ Computing• ‘Open’ technical standards• Promise of financial reward

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Financial sectors most likely to be disrupted by FinTech in the next 5 years

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What is Financial Technology? • Payment, e.g. P2P, P2M, O2O etc.• Big data analysis in

different sectors• Blockchain, e.g.

Smart Contract• Robo advisor - AI• Customer

experience• Internet of Things,

e.g. e-commerce• Cyber security

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FinTech financing

Looking at deal volumes, 78 per cent went to FinTech companies targeting banking industry, nine per cent to wealth management and asset management companies, while only one per cent went to the insurance sector.

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Blockchain

The technology behind bitcoin could transform how the economy works

Letstalkpayments.com

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Robo Advisory

What is robo-advisory?

A robo-advisor is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners.

What’s happening?• US leading the robo advisory

charge• Cooperation over competition• "Where significant growth is

expected lies in partnerships between robo advisory platforms and big banks."

• Regulatory barriers a big challenge outside the US

KPMG The Pulse of Fintech, Q1 2016

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OCBC Bank is one of the largest and most established banks in Singapore. The bank has launched a set of open APIs that enable developers to integrate third party applications with banking features. The suite of OCBC Bank APIs include:

OCBC Bank Branch Locator API OCBC Bank Credit Card Advisor API OCBC Bank Forex API OCBC Bank ATM Locator

‘Open API’Application Program Interface

Robo advisors Bank with ‘Open API’

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Challenges

KPMG ‘Making Hong Kong a FinTech centre’ June 2015

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“Regulatory Sandbox”

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References• PwC Blurred lines: How FinTech is shaping Financial Services

• KPMG The Pulse of Fintech, Q1 2016, Global Analysis of Fintech Venture Funding

• Accenture FinTech and the evolving landscape

• KPMG Making Hong Kong a FinTech Centre

• Deutsche Bank FinTech 2.0 report

• Venturescanner Q1 FinTech update

• Economist The trust machine

Some HK startup sites

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HKCS FinTech Special Interest Group• Committee is formed of senior IT people working to promote FinTech

for Hong Kong and our members• Liaise with other HK groups such as HKIB, Cyberport, HKFI• Supporting startup entrepreneurs• Email: hkcs@hkcs.org.hk