As Angela Merkel said in Davos, Industry 4.0 (the fourth industrial revolution) demands that we “deal quickly with the fusion of the online world and the world of industrial production”. From the top down, the concept is simple, but bottom up, every last detail must be reviewed. This calls for a review of past experience with the knowledge of today, says FLOvate partner Stephen Cooper.
Very generally, Fintech is the sweeping away of incompatibility in the world of finance, Blockchain (the shared public ledger on which Bitcoin relies) being the stand out example. Regtech is the solving of obligatory regulatory demands using better and more efficient systems and Insurtech is the collection of better risk information from the insured in the hunt by insurers to be more competitive for business.
Industry 4.0, Fintech, Regtech, Insurtech.. all are all in pursuit of higher productivity – cost reductions using better information. In a world of lower growth than we have known for three generations with close to 0% interest rates a 1-4% improvement becomes really attractive.
Top down, the concept is simple but bottom up, every last detail must be considered. By reviewing obligatory financial markets regulation,(which has been consuming our energies and resources for 15+ years) it is clear that businesses can do more with less. How?
- By deploying the experience of the past with the knowledge of today
- By identifying regulation that is obligatory and where improvements can be made
- By spotting the top-down opportunity and, more importantly, applying realistic and detailed bottom up knowledge to scope and execute.
Article: Stephen Cooper. To learn how Stephen can help financial services organisations apply and benefit from Fintech, please contact him at the Hannaford Associates website.