Santander-金融科技2.0白皮书-重启金融服务（英文版）-2018-20页

Fintech 2.0 Paper Summary

Core Content

This report, The Fintech 2.0 Paper: Rebooting Financial Services, is authored by Santander InnoVentures in collaboration with Oliver Wyman and Anthemis Group. It outlines the evolving relationship between banks and fintechs, emphasizing the need for collaboration rather than competition to drive the next phase of financial innovation.

Main Points

1. Fintech 1.0 and Its Limitations

• Fintechs have emerged as a significant force in financial services, particularly in payments and consumer lending.
• Despite their success, fintechs have largely operated at the edges of banking, not deeply integrated into core banking processes.
• Banks have not been significantly disrupted, indicating the need for a more fundamental transformation.

2. The Emergence of Fintech 2.0

• Fintech 2.0 is expected to bring fundamental changes to the infrastructure and processes of the financial services industry.
• It will enable more efficient, accurate, and customer-centric services by leveraging advanced technologies such as the Internet of Things (IoT), smart data, distributed ledger technology (DLT), and frictionless processes.

3. Key Technologies and Their Applications

2. Applications for the Internet of Things (IoT)

• IoT can streamline trade finance by enabling real-time data access and automated verification of goods and transactions.
• It can improve collateral management by providing accurate and continuous monitoring of asset conditions.
• IoT can also enhance customer understanding by tracking business activity and support better risk assessment.
• The cost of IoT implementation is expected to fall, making it a viable solution for increasing transparency and reducing operational inefficiencies.

3. Being Smarter with Smart Data

• Banks have access to vast amounts of data, but often lack the analytical capabilities to derive value from it.
• Fintechs can offer specialized data analytics that help banks improve customer engagement, detect fraud, optimize credit scoring, and provide better budgeting advice.
• Examples include real-time satisfaction surveys, fraud detection, and predictive analytics for SME credit and personal financial management.

4. Embedding Distributed Ledger Technology (DLT)

• DLT offers trustless, transparent, and efficient transaction processing.
• It can eliminate intermediaries, reduce settlement risk, and increase accuracy in financial transactions.
• DLT supports smart contracts, enabling automated execution of agreements in areas such as securities settlement, trade finance, and derivatives.
• Potential cost savings from DLT in cross-border payments and regulatory compliance are estimated at $15–20 billion annually by 2022.

5. Creating Frictionless Processes and Products

• Frictionless banking involves streamlining customer experiences through digital innovation.
• Mortgages and long-term savings are still friction-heavy processes that can benefit from digitization.
• A frictionless mortgage process, as seen in Denmark, could involve real-time collateral valuation, automated fund transfers, and instant approvals.
• Frictionless saving and investment can be achieved through robo-advisors and personal financial management (PFM) tools that integrate real-time data and user-defined triggers.

Key Opportunities

• Trade finance can be reformed through IoT and smart contracts, reducing costs and increasing access for SMEs.
• Collateral management can be optimized with IoT, improving valuation accuracy and reducing risk.
• Smart data analytics can enhance customer insights and reduce operational costs.
• Distributed ledger technology can transform securities settlement and reduce settlement risk.
• Frictionless mortgage processes and investment platforms can improve customer satisfaction and operational efficiency.

Conclusion

• Fintech 2.0 represents a collaborative future for financial services, where banks and fintechs work together to re-engineer the industry.
• Banks bring regulatory expertise, brand trust, and legacy systems, while fintechs offer innovation, agility, and digital-first solutions.
• The joint effort of both parties is essential to achieve significant change and realize the full potential of Fintech 2.0.

Summary of Benefits

• Cost reduction in trade finance and collateral management.
• Improved risk assessment and customer understanding.
• Enhanced transparency and efficiency in financial processes.
• Increased access to financial services for SMEs and individuals.
• New revenue streams and value creation through data-driven insights.

Final Message

• The future of finance lies in collaboration.
• Banks and fintechs must combine strengths to drive innovation and improve the industry.
• The message is clear: to achieve Fintech 2.0, both parties must work together.