As fintech disruptors change how everything works, banks and financial institutions are either partnering with them or developing and deploying their own solutions. With the world becoming one enormous marketplace, we have seen a constant change in how businesses take place. This has been further fueled by new technologies and rapidly evolving customer expectations. Even the highly regulated banking and finance sector has in recent times witnessed the constant metamorphosis of its business models to stay ahead in disruptive times. When it comes to the financial services ecosystem, the fintech industry plays a significant role in determining how the sector moves forward.
Although the process has to become simpler before it's adopted more widely, international money transfer is a great use case for digital currencies like Bitcoin. People can use a digital currency to transfer funds for pennies, bypassing the costly foreign exchange services offered by banks and traditional payment processors.
Unfortunately, we live in an age where organizations are all locked in a constant battle with hackers and cyber criminals to stay ahead of the latest cyber security and hacking technologies. As the integration of cutting edge developments such as Internet of Things (IoT) and smart technologies become more prevalent in our business and personal lives, we're also finding that there are more and more ways in which our systems and dce compromised. This had led to various different solutions being put forward with regards to both protecting our devices, systems, and data and outsmarting those hackers and cyber criminals who may wish to compromise, damage or steal from our systems and connected devices. One of the most promising solutions available are managed detection and response (MDR) systems. These systems offer cyber-security-as-a-service and there are various benefits that can be had from the implementation of such approaches to cyber security.
Ever since the world has become one enormous marketplace, we have seen a constant change in how businesses take place. This has been further fueled by new technologies and rapidly evolving customer expectations. Even the highly regulated banking and finance sector in recent times has witnessed constant metamorphosis of its business models to stay ahead in disruptive times. Hence, when it comes to the financial services ecosystem, the FinTech industry plays a significant role in determining how the sector moves forward. Today, FinTech disruptors are changing how everything works –lending, payments, insurance, credit settlements, and more.
In a speech delivered at "Fintech and the New Financial Landscape" in Philadelphia on November 13, 2018, Federal Reserve Board Governor Lael Brainard discussed how technology is changing the financial landscape and the lessons being learned about artificial intelligence (AI) in financial services. According to Governor Brainard,"[a]lthough it is still in the early days, it is already evident that the application of artificial intelligence (AI) in financial services is potentially quite important and merits our attention." She noted that the Fintech working group is working across the Federal Reserve System "to take a deliberate approach to understanding the potential implications of AI for financial services, particularly as they relate to our responsibilities." The focus of Governor Brainard's speech was on the branch of AI known as machine learning – which applies and refines a series of algorithms on a large data set in order to identify patterns and make predictions for new data. Brainard highlighted how recent technological advances have made the three key components of AI – algorithms, processing power, and big data – all increasingly accessible.