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  • user 3:35 pm on June 28, 2016 Permalink | Reply
    Tags: , , , , , markets, , , , , , ,   

    German Stock Market Operator Releases Paper On How Fintech Will Reshape Capital Markets 

    , artificial intelligence (AI), machine learning and Big Data will transform , according to Deutsche Boerse. It urges established financial infrastructure players to start approaching firms and consider partnering with these innovative ventures.

    Future of fintech in capital markets deutsche boerse report 2016In a new report entitled &;Future of Fintech in Capital Markets,&; Deutsche Boerse, in collaboration with fintech research and advisory firm Celent, analyzes the potential impact of fintech on market infrastructure incumbents and highlights the opportunity for providers in partnering with these new innovative ventures.

    According to David Easthope, senior vice president and responsible for the securities and investments practice of Celent, pioneering fintech firms are transforming major parts of the financial services ecosystem. He urges incumbents and fintech firms to start pursuing a collaborative approach, arguing that fintech will mostly likely shape the future of capital provision, , and other industry workflows.

    Deutsche Boerse fintech capital markets report 2016

    In 2015, about US$ 19 billion in capital was invested globally in fintech across approximately 1,200 deals, highlighting the general appetite for financial services disruptors.

    The report points out five capital market fintech clusters and technologies:

    capital market fintech clusters deutsche boerse report 2016

    Blockchain technology and distributed ledgers have the potential to substantially change the nature of issuance, and potentially enhance exchanges&8217; role in price discovery, access liquidity, reduce frictional costs and offer a path to a more efficient core market infrastructure.

    Post-trade digitalization: firms are looking into Big Data, AI and advanced analytics to process and create compliance and regulatory reporting. Regulatory technology (regtech) is an opportunity for incumbents to improve their operational efficiency, reduce systemic risk, and provide additional revenue-generating opportunities.

    Machine learning, predictive analytics and Big Data technologies, will impact capital markets by providing tools to mine data across the value chain. New methods of data delivery and tools for insight and prediction will allow firms to make better decisions around allocation and risk, and investors to gain access to next-gen index products, ETFs, as well as other innovative trading and investment products.

    Investment technologies, including automated investment management tools or -advisors, are gaining relevance as the industry continues to shift towards automation in asset allocation and rebalancing. On the retail side, customers are shifting to cloud-based digital solutions that are accessible in terms of pricing as well as usability.

    Alternative funding platforms and peer-to-peer business models are reshaping traditional channels for equity and debt capital formation, opening up new networks for accessing capital. Financial market organizations can capitalize on this trend and provide new solutions to the financing and funding market.

    As trends in digitalization accelerate, established technology firms and market operators will need to collaborate with new business models and innovative technologies.

    &;Market participants need to continually evolve and innovate their business models,&; the report says.

    &8220;The financial market infrastructure provider of tomorrow will have leveraged its leadership in regulation, market structure, trading, clearing, and settlement to guide startup fintech firms in the journey towards creating an effective and safe capital market for the twenty-first century and beyond.&8221;

    The report was released simultaneously with the announcement of Deutsche Boerse Group&8217;s new corporate venture capital platform, DB1 Ventures. The team, based primarily in Frankfurt, said it will invest in early to growth stage fintech firms and manage the group&8217;s existing portfolio of investments.

    According to Carsten Kengeter, CEO of Deutsche Boerse, the idea behind DBI Ventures is to allow the group to continue on being an active investor in the space. DBI Ventures will primarily focus on ventures and products that &8220;are core or adjacent to our client, product, geographic and technology strategy,&8221; according to Kengeter.

    Committed to keeping up with emerging fintech trends, Deutsche Boerse has been involved in the space via various means. In April 2016, the group launched its Fintech Hub in Frankfurt, an initiative aimed at acting as a cluster for German financial innovation.

    Deutsche Boerse is also an investor in Digital Asset Holdings, a developer of distributed ledger technology for the financial services industry. In November 2015, it invested in Illuminate&8217;s IFM Fintech Opportunities Fund, which focuses on areas such as compliance, regulation and connectivity.

    In July 2015, Deutsche Boerse acquired forex trading digital platform 360T for 725 million euros.

     

    Featured image: Deutsche Boerse by Jochen Zick, Action Press, via Flickr.

    The post German Stock Market Operator Releases Paper On How Fintech Will Reshape Capital Markets appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

     
  • user 3:35 am on June 25, 2016 Permalink | Reply
    Tags: , , , , , markets, Notably, , ,   

    Fintechs Gain Significant Traction Notably in Emerging Markets 

    63% of customers across the globe are using products or services, according to Capgemini and Efma. Most particularly, penetration is the highest in and among millennial population, but is also expected to increase in all geographies and ages, the firms claim in a report.

    Banking customers usage fintech firms report 2016

    The report, which draws on one of the industry&;s largest customer surveys with responses from over 16,000 customers across 32 countries and 140 industry executives, found that fintech ventures are increasingly attracting referrals, new customers, and gaining trust.

    Users claim that fintech ventures are providing products that are easy to use (82%), services that are faster (81%), and an overall good customer experience (80%).

     

    Value proposition of fintech firms report 2016

    Customers said they would rather recommend fintech providers (55%) to their friends and relatives, rather than their own bank (38%). Only 15.9% of customers said they are likely to purchase another product from their bank, &;pointing to the need for more innovative product development,&; the report says.

    Customers fidelity banks versus fintech 2016 report

    In reply to the increasing competition, in more than 85% of countries have improved customer experience. That said, younger generations remain the most unsatisfied, raising concerns about the ability of traditional banks to meet the higher expectations of these segment.

    While over 90% of banking executives believe that change is accelerating towards digital banking, only 12.9% say they have the systems in place to support the change.

    banks and digital banking ecosystems report 2016

     

    &8220;Banks are underestimating the value fintech firms provide in delivering a good experience and efficient service, as well as their potential influence on all areas of banking,&8221; the report says.

    Findings suggest that banks are struggling to respond to &8220;increasingly aggressive fintech competitors.&8221; 65.3% of banking executives said they view fintech firms as partners and pointed out that the most appropriate ways to partner with these ventures are through collaboration (45.5%) and investment (43.6%).

    banks fintechs strategic partnerships

    &8220;Banks and fintech firms will need to work together and leverage each other&8217;s strengths to create the best possible future ecosystem,&8221; the report advises. &8220;By being proactive, banks can reduce the risk of being marginalized as the ecosystem evolves.&8221;

    The report argues that APIs are essential to the future of banking as they offer the ability to take advantages of fintech assets such as speed and creativity. While some have embraces the open architecture of APIs, the industry as a whole still has a long way to go.

    Additionally, regulation such as the EU&8217;s Directive on Payment Services 2 (PSD2), which aims at establishing the legal foundation for the creation of an EU-wide single market for payments, will further pressure banks to expose banking core ledgers openly and transparently to third-party solution providers.

    &8220;Today&8217;s partnerships are a stepping-stone toward a much bigger role banks are expected to play in creating a digital banking ecosystem. In the emerging ecosystem, existing bank infrastructures and new fintech will both play strong parts,&8221; the report claims.

    By teaming up with fintech ventures, banks can be &8220;better equipped to meet rising customer expectations for enhanced experiences and innovative services,&8221; it states.

    &8220;They can explore ways of generating revenue from that want to tap their expertise in traditional banking areas like risk management and payments. Putting a price on assets like geo-enhanced data, customer authentications and money transfers could held banks generate new revenue streams.&8221;

    Capgemini and Efma&8217;s &;World Retail Banking Report 2016&8216; echoes previous papers released that advise for more collaboration between the banking and the fintech sectors.

    The Economist Intelligence Unit issued a report in December last year, arguing that banks and fintech startups have more business interests in common than issues that divide them.

    Another document, by Deutsche Bank, claims that banks and fintech ventures should collaborate rather than compete against each other.

    Finally, in Accenture&8217;s &8216;Fintech and the evolving landscape&8217; report, the consultancy firm argues that banks should consider fintechs as enablers, urging them to assess, adapt and adopt new technologies.

    The post Fintechs Gain Significant Traction Notably in Emerging Markets appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

     
  • user 8:55 pm on June 23, 2016 Permalink | Reply
    Tags: , , , , , markets, , ,   

    Survey: Blockchain Capital Markets Spending to Reach $1 Billion in 2016 

    A new estimates that finance companies will invest as much as $ 1bn on initiatives related to in .
    fintech techcrunch

     
  • user 12:18 pm on June 21, 2016 Permalink | Reply
    Tags: , , , , markets,   

    Regtech in Capital markets & Investing 

    Working on Wall Street has always been a hazardous profession, especially for those in the front line of the business, the traders. Market risks, volatility, and uncertainties, are the stressors for traders and those allocating and managing risk. This is the nature of the business, the , whether currencies, stocks, bonds etc. This will&;Read more in Capital markets &;&;
    Bank Innovation

     
  • user 11:18 pm on May 25, 2016 Permalink | Reply
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    Goldman Sachs: Blockchain Tech Could Save Capital Markets $6 Billion a Year 

    A new report from Investment Research projects billions across industries.
    fintech techcrunch

     
  • user 8:14 pm on May 10, 2016 Permalink | Reply
    Tags: , BitPagos, , , , , , markets, , ,   

    BitPagos uses the blockchain to enable credit for online payments in emerging markets 

    tcdisrupt_NY16-4966 The world is familiar with being used for many things. , long-distance remittance, even a substitute for gold, but what about ? Not so much &; and that&;s where , a startup competing in the Battlefield pitch competition at TechCrunch Disrupt New York, wants to make its mark. Read More


    fintech techcrunch

     
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