• 11 Feb, 2020 08:00 am

One of the contributors to this edition of Financial IT raises the possibility that the global financial services industry as we know it could cease to exist.

Of course, this outcome does not mean that the activities of the global financial services would not take place. Rather, they would be performed in different ways by Fintechs that are very different to traditional financial institutions. Payments services providers will enable individuals and businesses to make and receive payments. New lenders will raise funding from capital markets and savers and recycle the loans to borrowers – using big data and Artificial Intelligence to make credit decisions. A huge variety of platforms will distribute savings products, insurance protection products and other offerings to customers.

In early 2020, Fintechs and traditional institutions are focusing on what this means for their businesses. Even a cursory glance at the articles in this edition of Financial IT will highlight that the Cloud will play a key role in new business models that are being developed. Open banking – the central theme of the European Union’s latest Payments Services Directive (PSD2) requires systems that are digital, flexible, and accessible on a 24/7 basis.