Solactive Fintech Index

Digital structural change in the financial services industry

 

Open End PERLES on the Solactive Fintech Total Return Index

I. Innovative technologies focusing on the financial sector

Financial Technology, or Fintech, involves the intelligent use of modern technologies in the domain of financial services. The financial offers not only include traditional banking services like account management, loans and investments, but also insurances, mobile payment systems, digital currencies, crowdfunding and online platforms for providing loans. According to PwC, Fintech represents one of the most dramatic changes in all segments of the traditional financial services sector. The PwC Study “Blurred Lines: How FinTech is shaping Financial Services” from March 2016 sees opportunities for example in data analyses, the cloud and also block chain technologies, which could contribute to savings and increase transparency in relation to payment transactions.

II. FinTech – The digital (r)evolution in the financial sector

The digital revolution started a long time ago in the financial sector. One of the leaders in this area is UBS. This large bank was the first to open its own “Innovations Laboratory” in 2015 in London, the center of the European financial scene. The objective of this Fintech incubator was, among other things, to develop new applications for modern banking and to perform research into the opportunities for cryptocurrencies. These kinds of incubators, which can now be found in many financial centers around the world, are generating quite dynamic innovation.

III. Start-ups as the driver of innovation

The global start-up scene, above all, is showing itself to be extremely excited about the growth potential of the expected technological upheaval in the financial sector. In its study “Fintech and the Evolving Landscape 2016”, Accenture looked into this trend on the basis of investments being made. According to the results, global Fintech investments rose by 75 percent to USD 22.2 billion in 2015 alone. This means that the volume has increased more than twelvefold since 2010. Whereas growth in the world’s largest Fintech market, the US, has slowed down somewhat, Europe and Asia have shown triple-digit increases on a percentage basis in 2015.

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