Solactive Fintech Index

Digital structural change in the financial services industry


Open End PERLES on the Solactive Fintech Total Return Index

I. Financial services industry in scope of innovative technologies

Financial Technology, also known as Fintech, signifies the intelligent use of modern technologies in the financial services industry. That encompasses classical banking services such as account management, lending and investment management as well as insurance services and mobile payment systems, digital currencies, crowdfunding or online credit brokerage Fintech may also help to optimise the numerous processes within various financial institutions. McKinsey identified four areas in which Fintech could trigger disruptive changes in the financial sector in their Global Banking Annual Review 2014 titled “The Road Back” four areas in which Fintech could trigger disruptive changes in the financial sector: Connecting, automating, decision making and innovating.

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

In its study “Fintech – The digital (r)evolution in the financial sector” Deutsche Bank Research shows the conviction that the digital age in the world of financial services has only just begun. The study says: “The penetration of internet and thus data-driven technologies, modern analytical methods and virtual infrastructures extends to every single household, country, sector, value chain and business model.” It also means that value-added processes and business models must be comprehensively adapted to the architecture of the digital age. The experienced market observers believe that modern data analysis methods allow Fintech companies to individualise certain financial services digitally. In such a way financial services can be of greater benefit to internet-savvy customers in particular.

III. Start-ups as the driver of innovation

Especially, the global start-up scene seems to be electrified by the growth potential of the expected technological upheaval in the financial sector. Accenture analysed the trend in the study “The Boom in Global Fintech Investment” on the basis of the financing activities. According to their research, the annual investment in Fintech ventures has increased from under 930 million U.S. dollars in 2008 to 2.97 billion U.S. dollars in 2013.

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