The Fintech 2.0 Paper:
rebooting
financial services
Why a paper for Fintech 2.0?
This paper for Fintech 2.0 has been created by Santander
InnoVentures, in collaboration with its partners Oliver Wyman and
Anthemis Group.
The purpose of Santander InnoVentures is to help Santander
deliver better services to our customers through innovation, and to
support a new generation of fintech start-ups on their growth
journey. We believe these goals are inextricably intertwined.
Oliver Wyman’s Innovation Platform has been established to
advise both its traditional client base and fast growth fintech firms
on the transformational change that is currently underway in the
financial services industry.
Many fintechs have succeeded but today they are still operating only at
the edges of banking. To help engineer more fundamental
improvements to the banking industry, they must now be invited inside,
to contribute to reinventing our industry’s core infrastructure and
processes. That can succeed only as a collaborative endeavour, with
banks and fintechs working together as partners.
This paper highlights the benefits of collaboration and identifies some of
the opportunities for profitable change in realising Fintech 2.0. We hope
the whole industry – both banks and fintechs – recognise the value of
this approach and join us in this collaborative journey to Fintech 2.0.
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Mariano Belinky,
Managing Principal, Santander InnoVentures
Emmet Rennick,
Head of Innovation, Oliver Wyman
Andrew Veitch,
Director, Anthemis
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1. Fintech 2.0
2. Applications for the Internet of Things
2.1. Cutting costs in trade finance
2.2. Improving valuation accuracy of real assets
in leasing and asset financing 10
3. Being smarter with smart data 12
4. Embedding distributed ledger technology 14
5. Creating frictionless processes and products 16
5.1. Opportunities to reduce friction in the mortgage process 16
5.2. Frictionless saving and investment 18
6. Conclusion: achieving Fintech 2.0 together 19
Contents
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Over the last decade, however, a new source of innovation in financial
services has emerged from financial technology start-ups (“fintechs”) and
technology companies (“techos”). These new firms have been quicker than
banks to take advantage of advances in digital technology, developing
banking products that are more user-friendly, cost less to deliver and are
optimised for digital channels.
This relative success is unsurprising. These new players are less burdened by
the demands of regulatory compliance which banks are subject to. They are
unencumbered by complex and costly to maintain legacy systems. They
can focus on creating single-purpose solutions, designed to offer an
improved experience within just one product or service. They are more in
tune with the peer-to-peer (P2P) culture engendered by the explosion of
social media. And they are smaller organisations, designed for the purpose
of innovation.
Capital has flowed into the fintech sector: $23.5 billion1 of venture capital...
