fintech and the consequences for the consumer
TRANSCRIPT
FinTech and the Future of Finance---
Consequences for the consumer
Professor Robin Teigland Stockholm School of Economics
www.slideshare.net/eteiglandwww.funnovation.se
[email protected] @RobinTeiglandMay 2016
What is FinTech?Technologies for banking and corporate finance, capital markets, financial data
analytics, payments, and personal financial management
- Accenture/CB Insights Finance Technology
FinTech
Stockholm’s path to Fintech success
Commoditization of banking
Greatly increased ease of transactions
I just bought 1000 SEK of
bitcoins
Mycelium wallet on my phone
Banking is essential,
but banks are not.
Bill Gates
Second wave of digitalization
Recent surveys of millennials
100 FinTech companies in Stockholm
20152014201320122011201020090
10
20
30
40
50
60
70
80
90
100
PaymentsLendingTrading and Banking TechOther FinTechWealth ManagementCrypto CurrencyCrowdfundingTransfers
# of
Com
pani
es
Moving in on traditional bank territory
Inspiration from CB Insights, SEB base webpage slightly modified to make more room
Alternative investments through crowdfunding
Automated investing based on algorithms
Cheaper and easier international payments
Changing behaviors?
Benefits vs challenges- “Condemned to the freedom
of choice” - “Freedom with
responsibility”- Increased spending,
overextending private economy
- Loss of privacy and integrity of data
- Risk of fraud- Cybersecurity- Difficulty in being a good
citizen? - E.g., Income tax filing
+ Increased choice+ Improved ease of
transactions + 24/7/365 access+ Reduced financial fees+ Alternative investment
possibilities+ Lowered switching costs
But will it truly be cashless?
Increased use of EUR and
USD?
How do I declare my
sale of bitcoins?
Future consequences ofEU Payment Services Directive (PSD)?
Payment Services Directive 2 (PSD2) passed on January 12, 2016
Must be included in domestic legislation by January 13, 2018
Among other things, requires that banks open up, through APIs
Intention is to improve consumer experience Some precedent (e.g., Tink), but no longer discretionary What does this mean for FinTech and banks?
Robin [email protected]
www.slideshare.net/eteiglandwww.funnovation.se
@robin.teigland
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