Insurance and Fintech: Trends on the horizon
Competition is rife in the insurance market – now more than ever. Technology is reshaping the industry, but it is an exciting time for everyone involved. Companies are using digitisation and automation to streamline processes. And customers are reaping the benefits. KPMG’s Matchi team has taken a closer look at the trends that are making waves in the insurance game.
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Banking on Small Business: 10 Global Trends
Digital innovation has made our world more connected, and to some degree, easier. For SMEs, technology has afforded entrepreneurs the opportunity to launch and manage businesses efficiently. But, when it comes to banking, small to medium business owners come with specific needs. Traditional banking products and services don’t necessarily cater to their unique needs. This has created a gap – and fintech solutions are ready to fill the void. KPMG Matchi has unpacked some of the global trends surrounding business banking.
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Asset Management: 10 Global Trends you can’t ignore in 2019
It is an exciting (and nerve-racking) time for investors around the globe. The industry is evolving exponentially. One of the catalysts responsible for this evolution is technology. New innovative products are being launched and asset management firms are embracing digital technology to enhance their offering. Competition has never been this tough. But, with an eye on what is happening globally, asset management firms must adapt or face the consequences.
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Wealth Management: Top Trends Shaping the Industry
Digital transformation is at the heart of an ongoing shift within the Wealth Management industry, much like most industries. There is a new generation of customer – tech-savvy individuals needing a personalised and engaging experience. With a shift towards digital, new challenges and opportunities have presented themselves. KPMG’s Matchi team has explored a few trends that are here to stay.
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Trend briefing on information security
When it comes to banking, compromising or breaching of client information is potentially one of the highest risk areas for both individuals and companies. Personal information that is compromised could lead to fraud and financial loss, as well as third-party control over financial affairs, while banks themselves are subject to huge reputational risk and regulatory risk in allowing breaches of information. However, there are other significant consequences apart from financial loss.
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Trend Briefing on Fintech for SME Finance
Small and Medium-sized Enterprises (SMEs) are globally acknowledged as a key success factor to grow the economy and reduce unemployment. The ability of SMEs to grow sustainably is dependent on their capacity to access finance, which has traditionally been the domain of commercial and retail banks. However, these institutions’ credit models are generally predicated on a history of banking behaviour and the extent of collateral – therefore SMEs, which may not have lengthy banking histories or collateral, are perceived as high-risk. SMEs are generally growth driven and therefore require banks to take an investment view, and not a credit view, of their business. The gaps between funders and SMEs are amplified for start-up businesses, which by their nature are already a high risk. This impasse between financial institutions and SMEs has led to a significant bottleneck to the growth of the economy.
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Technological disruption finally reaching bond markets
AEquity markets were one of the first banking sectors to experience disruption, which arrived in the form of new fintech entrants. These ranged from electronic trading platforms to robo-advisors. The bond market, however, has seen far fewer technological advancements and has remained characterised by old-fashioned methods of trading “over the phone” with little transparency. That is starting to change.
Electronification of bond trading platforms is a growing trend, starting with the larger government debt markets but starting to slowly feed into municipal and corporate bond markets too. One of the distinguishing features of the bond market is that companies generally only issue one stock but may have several bonds, all with different features. This, coupled with the large volumes catering solely for institutional and not retail markets, makes it harder to analyse bond markets.
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Fintech Innovations for Human Resources
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Fintech in the FICC Market
A closer look at trends in the FICC market:
Automation and AI are one of the drivers of competitive differentiation in capital markets—in the front and back office
The FICC business within the investment banking sector has been slow to experience disruptive technologies, largely due to the human based nature of the advisory work. The trading aspects has been awash with multiple algorithmic solutions over the past two decades, although most of these have been computational in nature using better processing capabilities of existing software and hardware. Many banks have also scaled back FICC desks due to post-crisis regulation, higher operating costs, and a shrinking revenue pool.
However the emergence of new technologies such as intelligent automation and AI can be a driver of competitive differentiation in capital markets—in the front and back office. Front-office technology innovation, especially cognitive automation, can bring efficiencies and possibly new sources of growth. In the back office, the industry can confront a smaller and unpredictable revenue pool by mutualizing post-trade overhead across participants. Banks that build the right capabilities and make the strategic choice to ride out near-term pressures to stay with the FICC business could see big pay-offs.
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Fintech innovations automating Cheque Processing
As much as the digital revolution has created multiple forms of paperless payment, from EFTs to cards to wearables, there is still a substantial amount of cheques still being issued, particularly for the B2B market. Cheques have some defining characteristics that may seem archaic in the new world of real time, instant payments but may actually be desirable in many instances, e.g. delays payment, ability to post date payment, simple to use, requires no knowledge of payees banking details etc.
However, the process of issuing and receiving can be cumbersome. Several fintechs have automated some aspects of cheque processing either by digitally issuing checks or using technology to digitise paper cheques while maintaining adequate security.
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More Articles ...
1. Fintech innovations offering Cloud Based servicesFintech innovations offering Cloud Based services
2. Fintech Innovations that use Comparison EnginesFintech Innovations that use Comparison Engines
3. Fintech innovations on Personal Financial Management (PFM)Fintech innovations on Personal Financial Management (PFM)
4. Fintech innovations that improve ReportingFintech innovations that improve Reporting
5. Fintech innovations on Know Your Customer (KYC)Fintech innovations on Know Your Customer (KYC)
6. Fintech innovations on Multi Factor AuthenticationFintech innovations on Multi Factor Authentication
7. Fintech innovations on Trading TechnologyFintech innovations on Trading Technology
8. Fintech innovations on MortgagesFintech innovations on Mortgages
9. Fintech innovations on Asset ManagementFintech innovations on Asset Management
10. Fintech innovations on Cross Border PaymentsFintech innovations on Cross Border Payments
11. Fintech innovations on Client MarketingFintech innovations on Client Marketing
12. Fintech innovations based on Social Media AnalysisFintech innovations based on Social Media Analysis
13. Fintech innovations providing Business Supporting ServicesFintech innovations providing Business Supporting Services
14. Fintech innovations using Algorithmic TechnologyFintech innovations using Algorithmic Technology
15. Fintech innovations for Cash Flow ManagementFintech innovations for Cash Flow Management
16. Fintech innovations for SME Accounting SolutionsFintech innovations for SME Accounting Solutions
17. Fintech innovations for MicrotransactionsFintech innovations for Microtransactions
18. Fintech Innovations for Financial AdvisorsFintech Innovations for Financial Advisors
19. Fintech Innovations for Bank to Bank OfferingsFintech Innovations for Bank to Bank Offerings
20. Fintech innovations for Rewards and LoyaltyFintech innovations for Rewards and Loyalty
21. Fintech Innovations for Financial EducationFintech Innovations for Financial Education
22. Fintech Innovations Based on Mobile WalletsFintech Innovations Based on Mobile Wallets
23. Anti Money LaunderingAnti Money Laundering
24. Broker InnovationBroker Innovation
25. Card FraudCard Fraud
26. Document ManagementDocument Management
28. Rapid prototypingRapid prototyping
29. Gamified fintech in trainingGamified fintech in training
30. Blockchain for non-paymentsBlockchain for non-payments
31. Fraud PreventionFraud Prevention
32. Artificial IntelligenceArtificial Intelligence
33. Portfolio ManagementPortfolio Management
34. Youth bankingYouth banking
35. Cost savingsCost savings
36. Natural Language ProcessingNatural Language Processing
37. Data analyticsData analytics
38. Process EfficiencyProcess Efficiency
39. Alternative credit scoringAlternative credit scoring
40. RegTech complianceRegTech compliance
42. Identity ManagementIdentity Management
43. Customer LifeTime ValueCustomer LifeTime Value
44. Bank in a boxBank in a box
45. Machine learningMachine learning
46. Financial inclusionFinancial inclusion
47. Share tradingShare trading
48. Robo advisorsRobo advisors
50. SME bankingSME banking
51. Digital account originationDigital account origination
52. Matchi Trend Report - Digital Account OriginationMatchi Trend Report - Digital Account Origination
53. Matchi Trend Report - Small BusinessesMatchi Trend Report - Small Businesses