FINANCIAL TECHNOLOGY

AGENDA

AGEND
1: Introduction to Fintech
2: eWallets , Digital Banking & Digital Payment
3: Digital Lending
4: Insurtech and Wealthtech
5. Open Banking
6: Cybersecurity in Fintech
7: Regulatory and Compliance Issues in Fintech

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 INTRODUCTION
TO FINTECH
WHAT IS FINTECH?
Definitions and usage vary, though generally speaking:
• 'Fintech’ refers to the use of technology to facilitate financial
services;
• A start-up that uses technology to disrupt finance is
sometimes called a ‘fintech’.

EMERGENCE OF FINTECH
• Quantitative Easing (QE)
• Supply of talent post GFC
• Changing Consumer behavior
• Regulation
• Availability of technology

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SECTORAL OVERVIEW
Compliance

eWallet Insurtech Regtech

Digital
Banking

Digital
Payment Wealthtech Cybersecurity

Digital Open
Lending Banking

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eWallet, Digital Banking, ePayment

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eWallet - Definition

eWallet (Electronic Wallet) is a digital application or online

service that allows individuals to store, manage, and use money
electronically. It offers a convenient, secure, and fast way to
make payments and handle financial transactions.

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eWallet - Key Features

1. Convenience:
• Quick and easy payments
• Integrated with mobile devices
2. Security:
• Encryption and biometric authentication
• Fraud detection and prevention
3. Versatility:
• Supports multiple currencies
• Integration with various payment methods (credit cards, bank
accounts)
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eWallet – Technology Drivers
• Near Field Communication (NFC):
• Contactless payments
• Tap-and-go transactions
• Blockchain:
• Secure and transparent transactions
• Decentralized payment systems
• Biometric Authentication:
• Fingerprint and facial recognition
• Enhanced security
• Artificial Intelligence (AI):
• Personalized spending insights
• Fraud detection
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eWallet – Market Trends

• Increasing adoption of mobile payments

• Growing preference for contactless transactions
• Expansion of eWallet services into new markets

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eWallet – Challenges

• Data privacy and security concerns

• Regulatory compliance
• Consumer trust and adoption

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eWallet - Conclusion

eWallets are revolutionizing the way we handle money by providing a

secure, efficient, and user-friendly alternative to traditional payment
methods. As technology evolves, eWallets are set to become an integral
part of the global financial ecosystem.

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Digital Banking - Definition

Digital Banking refers to the digitization of all traditional banking activities

and programs that historically were only available to customers when
physically inside of a bank branch. This includes activities like money
deposits, withdrawals, transfers, and account management.

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Digital Banking - Key Features

1. Accessibility:
• 24/7 banking services
• Access through mobile apps and online platforms
2. Convenience:
• Remote account opening
• Easy fund transfers and bill payments
3. Cost Efficiency:
• Reduced need for physical branches
• Lower transaction fees

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Digital Banking – Technology Drivers
• Mobile Applications:
• User-friendly interfaces
• Secure transactions
• Blockchain:
• Secure and transparent transaction records
• Faster cross-border payments
• Artificial Intelligence (AI):
• Personalized customer service via chatbots
• Enhanced fraud detection
• Big Data:
• Customer behavior analysis
• Tailored financial products
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Digital Banking – Market Trends

• Increasing shift from traditional banking to digital platforms

• Rising customer demand for seamless digital experiences
• Growth of neobanks and digital-only banks

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Digital Banking – Challenges

• Data privacy and cybersecurity threats

• Regulatory compliance
• Integrating new technologies with legacy systems

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Digital Banking - Conclusion

Digital banking is transforming the financial services landscape by offering greater

accessibility, convenience, and cost efficiency. As technology continues to advance,
digital banking is expected to become the norm, providing innovative solutions to meet
the evolving needs of consumers.

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Digital Payment - Definition

Digital Payment refers to the transfer of funds or monetary value through

digital means, eliminating the need for cash or checks. These payments
are made using various electronic methods such as mobile wallets, online
banking, credit/debit cards, and more.

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Digital Payment - Key Features

1. Speed:
• Instant transactions
• Quick and efficient payment processing
2. Convenience:
• Payments can be made from anywhere, anytime
• Wide range of payment options
3. Security:
• Encryption and tokenization
• Fraud detection and prevention mechanisms
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Digital Payment – Technology Drivers
• Mobile Payment Apps:
• Peer-to-peer (P2P) payments
• In-app purchases and mobile commerce
• Blockchain:
• Secure and transparent transactions
• Lower transaction costs for cross-border payments
• Near Field Communication (NFC):
• Contactless payments
• Tap-and-go transactions
• Artificial Intelligence (AI):
• Advanced fraud detection
• Personalized user experiences
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Digital Payment – Market Trends

• Rapid growth in mobile payments and e-commerce

• Increasing adoption of contactless payment methods
• Expansion of digital payment infrastructure in emerging markets

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Digital Payment – Challenges

• Data privacy and cybersecurity risks

• Regulatory and compliance issues
• Ensuring interoperability across different payment systems

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Digital Payment - Conclusion

Digital payments are revolutionizing the way transactions are conducted,

offering enhanced speed, convenience, and security. As the adoption of
digital payment methods continues to grow, they are poised to become the
predominant form of transaction in the global economy.

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Digital Lending

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Digital Lending - Definition

Digital Lending refers to the process of offering loans that are applied for, processed,
and disbursed through digital channels. This includes personal loans, business loans,
mortgages, and other types of credit offered via online platforms and mobile
applications.

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Digital Lending - Key Features

1. Convenience:
• Online application processes
• Quick approval and disbursement
2. Efficiency:
• Automated underwriting and credit assessment
• Reduced paperwork and manual intervention
3. Accessibility:
• Broader reach to underserved markets
• Easier access to credit for individuals and businesses

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Digital Lending – Technology Drivers
• Artificial Intelligence (AI):
• Advanced credit scoring models
• Predictive analytics for risk assessment
• Blockchain:
• Secure and transparent loan processing
• Smart contracts for automated loan agreements
• Big Data:
• Enhanced customer profiling
• Data-driven decision making
• Machine Learning:
• Improved fraud detection
• Personalized loan products
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Digital Lending – Market Trends

• Growing popularity of peer-to-peer (P2P) lending platforms

• Increased adoption of digital lending by traditional banks
• Expansion of digital lending services in emerging markets

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Digital Lending – Challenges

• Data privacy and security concerns

• Regulatory compliance
• Ensuring fairness and transparency in lending practices

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Digital Lending - Conclusion

Digital lending is transforming the credit landscape by making the lending

process more accessible, efficient, and customer-friendly. As technology
continues to evolve, digital lending platforms are set to play a significant
role in the future of finance.

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 Insurtech

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Insurtech - Definition

Insurtech (Insurance Technology) refers to the use of technology

innovations designed to achieve savings and efficiency from the
current insurance industry model.

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Insurtech - Key Features

1. Customer Experience:
• Personalized policies
• Faster claims processing
• Digital onboarding
2. Operational Efficiency:
• Automation of processes
• Advanced data analytics
• Cost reduction
3. Product Innovation:
• Usage-based insurance
• On-demand insurance
• Peer-to-peer insurance
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Insurtech– Technology Drivers
• Artificial Intelligence (AI):
• Predictive analytics
• Chatbots and virtual assistants
• Blockchain:
• Transparent claims processing
• Fraud prevention
• Internet of Things (IoT):
• Real-time monitoring (e.g., telematics in auto insurance)
• Risk management
• Big Data:
• Enhanced risk assessment
• Customer insights
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Insurtech – Market Trends

• Growing investment in insurtech startups

• Collaboration between traditional insurers and tech firms
• Increasing regulatory support

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Insurtech– Challenges

• Data privacy and security concerns

• Integration with legacy systems
• Regulatory compliance

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Insurtech - Conclusion

Insurtech is revolutionizing the insurance industry by enhancing efficiency,

improving customer experience, and fostering innovation. As technology
continues to evolve, the impact of insurtech is expected to grow, making it
a vital component of the future insurance landscape.

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 Wealthtech

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Wealthtech - Definition

Wealthtech (Wealth Technology) refers to the use of cutting-edge

technology to provide wealth management and investment services, aiming
to enhance the efficiency, accessibility, and personalization of financial
services.

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Wealthtech - Key Features

1. Robo-Advisors:
• Automated investment advice
• Portfolio management
• Lower fees
2. Digital Wealth Management:
• Online platforms for investment
• Real-time portfolio tracking
• Personalized financial planning
3. Financial Inclusion:
• Access to investment tools for underserved markets
• Micro-investing platforms
• Educational resources
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Wealthtech – Technology Drivers
• Artificial Intelligence (AI):
• Algorithm-driven financial advice
• Predictive analytics for investment strategies
• Big Data:
• Enhanced client profiling
• Market trend analysis
• Blockchain:
• Secure and transparent transactions
• Tokenization of assets
• Machine Learning:
• Advanced risk assessment
• Improved investment decision-making
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Wealthtech – Market Trends

• Growing popularity of digital wealth platforms

• Increasing adoption of robo-advisors
• Collaboration between traditional wealth managers and fintech firms

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Wealthtech – Challenges

• Data privacy and security concerns

• Regulatory compliance
• Integration with traditional financial systems

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Wealthtech - Conclusion

Wealthtech is transforming the landscape of wealth management by

making investment services more accessible, efficient, and personalized.
As technology continues to advance, WealthTech is expected to play an
increasingly crucial role in the financial services industry.

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 Open Banking

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Open Banking - Definition

Open Banking is a banking practice that provides third-party financial service providers
open access to consumer banking, transaction, and other financial data from banks and
non-bank financial institutions through the use of application programming interfaces
(APIs).

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Open Banking - Key Features

1. Data Sharing:
• Secure sharing of financial data with third-party providers
• Consumer consent and control over data access
2. Innovation:
• Development of new financial services and products
• Enhanced customer experiences
3. Transparency:
• Clear and accessible information about financial services
• Increased competition and choice for consumers

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Open Banking – Technology Drivers
• APIs (Application Programming Interfaces):
• Seamless data exchange between banks and third-party providers
• Standardized protocols for secure communication
• OAuth and OpenID Connect:
• Secure authentication and authorization frameworks
• Protect user credentials and ensure data privacy
• Blockchain:
• Enhanced data security and integrity
• Transparent transaction history
• Big Data Analytics:
• Insightful data analysis for personalized services
• Improved risk management and decision making
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Open Banking – Market Trends

• Increasing regulatory support (e.g., PSD2 in Europe)

• Growing adoption by banks and fintech companies
• Expansion of open banking ecosystems

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Open Banking – Challenges

• Data privacy and security concerns

• Integration with legacy banking systems
• Consumer awareness and trust

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Open Banking - Conclusion

Open banking is transforming the financial landscape by enabling greater data

transparency, fostering innovation, and enhancing customer experiences. As the
adoption of open banking continues to grow, it is set to drive significant changes in the
way financial services are delivered and consumed.

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 Cybersecurity

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Cybersecurity - Overview
Why Cybersecurity is Important:
• Protects your money and personal information.
• Keeps financial systems safe from hackers.
• Helps you trust online financial services.

Key Challenges:
• Hackers are getting smarter and more creative.
• Companies need to follow many rules to protect data.
• New technologies need to be kept secure.

Basic Security Principles:

• Confidentiality: Only the right people can see your information.
• Integrity: Your information can't be changed without your permission.
• Availability: You can access your information whenever you need it.
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Cybersecurity - Overview
Simple Security Measures
• Encryption: Scrambles your data so only you and the bank can read it.
• Multi-Factor Authentication (MFA): Uses your password and another way to confirm it's really you (like a text message
code).
• Regular Security Checks: Companies regularly check their systems to find and fix security problems.

Examples of Cybersecurity Breaches:

• Equifax (2017): Hackers stole personal information, including Social Security numbers, from over 140 million people.
• Capital One (2019): A hacker accessed personal information of over 100 million credit card applicants.
• Experian (2020): Hackers stole personal data of 20 million customers by using social engineering.

Looking Ahead:
• Using smart technology to catch hackers.
• New laws to keep financial data safe.
• Better security for things like digital wallets and online payments.
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Regulatory Compliance

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Regulatory Compliance– Overview
Importance of Regulatory Compliance

• Ensures legal and ethical operation within the financial sector.

• Protects consumer rights and maintains trust.
• Avoids legal penalties and financial losses.

Key Regulations

• General Data Protection Regulation (GDPR)

• Payment Card Industry Data Security Standard (PCI-DSS)
• Anti-Money Laundering (AML) Regulations
• Know Your Customer (KYC) Regulations

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Regulatory Compliance– Overview
Key Compliance Measures

• Conducting periodic reviews to ensure adherence to regulatory requirements.

• Identifying and addressing gaps in complia
• Establishing clear policies and procedures for regulatory adherence.
• Training staff on compliance practices and regulatory changes.
• Maintaining accurate and up-to-date records of transactions, customer interactions, and compliance activities.
• Ensuring data integrity and availability for regulatory inspections.

Future Trends

• Growing focus on fintech innovations and their implications for consumer protection and financial stability
• Efforts to standardize regulations across borders to facilitate international operations.
• Use of AI and blockchain for automating compliance processes and improving accuracy.

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 THANK YOU

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