Pages: 9

In this ever-changing, ambiguous, and dynamic landscape, disruptive technologies are reshaping markets at an unprecedented and extraordinary velocity–rendering many traditional business models obsolete. Project Management is no exception. The massive ripple effect of disruptive technologies is proving to be a powerful catalyst in accelerating how Project Management practice adapts to new methods to deliver value to their customers and assert their relevance in this highly competitive industry. High performing organizations are already embracing this disruption, reimagining their mission, adopting innovative tools, with a keen eye on bridging the costly gap between strategy design and value delivery. FinTech leaders are already aligning project delivery with organizational strategy and fully understand the urgent need to shift to a digital practice. As the Head of Optimizers at FIS Global, I am at the forefront of strategizing a new operating model to drive operational efficiency. One of our key initiatives is to onboard an innovative Project Management tool to automate manual, repeatable processes which will free up our project managers’ capacity and allow them to focus on delivering real business value to their customer base.

Pages: 14

Financial systems are becoming increasingly complex, and API-based ecosystems, Open Banking, Embedded Finance, and FinTech, have become the backbone of the modern banking system. However, this complexity needs to be managed. It becomes increasingly demanding to get an overview of existing systems, onboard new team members, and systematically plan enhancements. While there are several tools and techniques to describe architecture and systems from a technical perspective, it seems that there are only a few approaches that allow a more holistic perspective, including business models, regulatory requirements, and other relevant aspects. Fragmented documentation and knowledge silos make it difficult to plan strategic enhancements. This chapter aims to introduce a template for developing new financial technology systems and documenting existing ones comprehensively. Whereas the goal is not necessarily to describe all the details, but to bring the central aspects to the point in order to enable all the different stakeholders to participate in the discussion. It can be an important tool for communication, collaboration and to support informed decisions.

Pages: 12

FinTech processes such as ordering, invoicing and billing, and payment, are essential building blocks for any business to provide financial services efficiently and effectively. Multiple stakeholders across the world collaborate in these processes. Process automation simplifies and improves these complex processes by saving time and money and reducing errors. A business process management lifecycle provides a framework to identify, analyze, and improve business processes. The order-to-pay and order-to-cash processes are two most commonly used processes by businesses to deliver products and services to customers and clients. These processes use sensitive identifiable information that needs to be secured and protected and operate in a highly regulated industry that needs to be compliant with a variety of regulations and policies. Alignment between internal and external finTech processes is necessary for the success of process automation and a satisfactory experience for the customers.

Pages: 7

Often minimized as a bridging technology, Robotic Process Automation (RPA) offers the opportunity to enter digitization in particular for established Financial Institutions. It enables systems to be connected quickly and inexpensively without the costly and time-consuming connection of native interfaces, which often contradict the IT architectural reorientation. Even if RPA is already established as a technology for digitizing and automating processes, there are several challenges in practice: The organizational and cultural change must internalize in the company and commitment from senior management is essential. Also, the initial implementation and sustainable establishment of a well-directed Target Operating Model (TOM) is a critical key success factor. RPA can thus stand as a cornerstone of digitization in Financial Institutions and establish itself as a recognized standard in the automation and digitization of processes.

Pages: 17

Cryptocurrencies

Pages: 10

Cryptocurrencies are at the forefront of today’s FinTech sector and have gained considerable popularity among both seasoned investors and ordinary retail enthusiasts alike. The expectation is that people will sometime soon ditch any national currency, such as the US Dollar, the Euro, or the Yuan for a more universal form of exchange, such as Bitcoin for transactions across national borders. The present paper attempts to highlight some of the caveats in such feelings towards the future of finance. It also summarizes the brief but rich history of the crypto world and discusses some of the myths surrounding cryptocurrencies and Blockchain technology, and questions their validity. While Blockchain technology’s potential in many industries, including the financial sector is promising and might be a possible game-changer–the potential danger of misinterpretation and abuse does exist, nonetheless. In the present paper, the basics of cryptocurrencies and FinTech are revisited and attempts have been made to help see them in the light of basic economic principles behind how money works. The thought experiments, literature review, and critical analysis presented in the present paper indicate that investing in cryptocurrencies needs to be considered with better value judgment, and with relatively more caution both in the sense of investment justification and also in the light of general ethics. Because investing in something that promises a high return with low to no risk (like many crypto assets do), might very well be a red flag about a Ponzi scheme or purely a gamble, which are not only potentially illegal but might also damage the general confidence in the financial system if left unchecked.

Pages: 18

The integration of digital technology into various business processes, organizational endeavors, and business models is referred to as digital transformation or the digitalization of enterprises. Digitalization had a significant impact on the banking sector, leading to increased convenience, efficiency, and innovation. However, it has also increased competition and disrupted traditional business models. The digital disruption has remarkably influenced the banking sector in recent years. The digital transformation of the banking industry is being fuelled by several factors, including cost savings, improved client experience, greater operating efficiency, and optimization of the entire business process. This disruption has been driven by advances in technology, changing consumer behavior, and increased competition. The motive of this chapter is to evaluate the scenario of digital transformation in the banking industry. Through reviewing prior literature, it can be concluded that to a large extent, the digital revolution in financial services has changed the functioning of the banking sector. Although it has provided various methods and techniques to make our lives easy, an addition to it has also given birth to various fraudulent cases. There are some risks while performing digital banking such as identity theft, phishing, cybercrime, fraud, and the like. This chapter also analyzes the various strategies related to overcoming or techniques to deal with the risks associated with digital disruption in the banking sector. Additionally, this chapter assesses the influence of digital transformation in financial services with reference to the banking system. The foundation of a digital bank is its platform, which enables banks to provide consumers with cutting-edge digital goods and services and because of the influence of this, consumer protection issues are more prominent.

Pages: 7

Crowdfunding is an alternative, novel form of digital financing that has the potential to alter how companies and individuals organize the collection of their financial resources. Even though more traditional ways of financing still dominate and will do so in the foreseeable future, crowdfunding nevertheless ‘democratized’ the financing process in parts, opening up opportunities for individuals and companies who formerly did not have proper access to financial resources. Besides these and other benefits, crowdfunding also entails several risks, especially that the value promised cannot be delivered. Established financial institutions such as banks should nevertheless harness this novel form of financing by complementing their services accordingly. Banks who accompany their customers in their crowdfunding journey can not only offer them an added value, but also might gain additional insights which they can harness for other customer relationships and their own market strategies.

Pages: 13

Equity crowdfunding is the online offering of shares in private companies to small investors through dedicated platforms. Since this is a high-risk financing project for both sides, the investor(s) and the investee, it is in the interest of the company to reduce relevant information asymmetries to increase the success of its crowdinvesting campaign. In the context of the signaling theory, this chapter discusses factors which fulfil this function (specifically, former external funding, business angel backing, accelerator participation, winning grants, and maturity of the company), and factors that may have positive, negative, or no effect on the success (like retained equity and intellectual property rights). The rationale behind each factor is explored, thus providing guidance to start-up companies considering equity crowdfunding.

Pages: 13

Embedded Finance is a rapidly emerging concept that has sparked considerable online attention. It is a multibillion-dollar market, and plenty of industry research and white papers have been released. The growth of Embedded Finance has been symbiotic with the rise of digital channels and platforms where the common currency is better user experience and seamlessly providing services at the point of context for customers. Despite its potential to disrupt traditional distribution models of financial services, Embedded Finance does not have a consistent and widely agreed definition that can form a foundation for further academic and professional research. This chapter discusses the existing definitions of Embedded Finance, divides them into schools of thought, and proposes a more robust and consistent definition that can fill the gap in the literature on Embedded Finance. It also explores drivers of adopting Embedded Finance under the framework of the unified theory of acceptance and use of technology.

Pages: 14

Buy-now-pay-later (BNPL) is changing young consumers’ spending and relationships to credit through an integrated digital ecosystem predicated on algorithmic marketing. Whilst BNPL has the capacity to liberate young consumers by fostering a more entrepreneurial disposition to credit, this view is founded on the supposition that consumers have the necessary knowledge and capability to make informed financial decisions. However, the use of algorithms means that young consumers are, perhaps, more accurately framed as being constrained and any inherent patterns of damaging behavior maintained. Therefore, while the provision of BNPL appears to offer opportunities such as greater accessibility and flexibility, it inevitably evidences numerous disadvantages, such as impulsive borrowing and financial vulnerability, which are intensified by a lack of regulation. These complexities create a challenging operational space for consumers, service providers, retailers, and regulators alike–arguably changing the relationships between them and necessitating continued consideration of the evolving nature of digital consumer credit solutions.

Pages: 12

This chapter discusses the concept of Zero Trust Architecture (ZTA) and its application in the banking and financial services industry. It highlights the increasing need for collaboration in API-based ecosystems and the potential risks associated with data protection and transaction security. It emphasizes the importance of secure information management and the challenges faced by organizations in the financial services industry regarding IT security. It introduces the history and key elements of Zero Trust, including user and location authentication, device management, application/service access control, real-time risk intelligence, and trust algorithms. The practical implementation of Zero Trust in a bank or financial services organization is also discussed. The chapter concludes by emphasizing the need for management attention and proper design and preparation when implementing Zero Trust ecosystems, including identifying protected resources and applying the least privilege access principle.

Pages: 12

This chapter explores the implications of digital transformation in the banking sector, focusing on its impact on business strategies, cost reduction, revenue generation, and the unintended yet significant contribution to Sustainable Development Goals (SDGs). Using the case study of Siam Commercial Bank (SCB) in Thailand, we highlight how digital transformation, driven by clear business objectives, leads to reduced costs, increased revenues, and the emergence of new business models. The successful implementation of digitalization demonstrates that what benefits business can also benefit society, showcasing the potential for digital transformation to serve both commercial interests and the achievement of SDGs.

Pages: 15

FinTech, particularly as it concerns digital assets and crypto currencies, is often seen as being at odds with traditional finance, a not unsurprising view given that many of the initial promoters of cryptocurrencies saw their new tools as a means to bypass government regulations and the existing financial industry. In Asia though many FinTech and DeFi entrepreneurs are working closely with the existing structures and the regulators to leapfrog technology gaps and bring Asian finance to the fore of global digital innovation. This chapter examines the way in which the history and culture of Asian business has, in a generalized sense, led to a greater tendency for Asia-based FinTech startups to embrace local regulators and work with them as cooperative partners, an approach at odds with the aforementioned view. Firms looking to establish FinTech operations in this region, or competing with Asia-based challengers, will be well served to take note of this approach and prepare their strategy accordingly.

Pages: 16

Blockchain technology has attracted significant attention in the financial industry in recent years. Originally conceived as the basis for the cryptocurrency Bitcoin, Blockchain has evolved into a technology that has the potential to fundamentally change the way financial transactions are conducted. It is primarily a technology that can make transfers of money and/or assets significantly more efficient and could make various intermediaries, such as payment processing or securities trading service providers, redundant. This chapter discusses the application areas of Blockchain in the financial industry and its impact on payments and securities.