I’m looking forward to keynoting today’s University of Maryland, Robert H. Smith School of Business’ Marketing and Finance Super Day. What follows is a sneak peak of my remarks on the intersection of technology with financial services and why FinTech matters to business-school students.
Investments in financial technology have grown exponentially in the past decade – rising from $1.8 billion in 2010 to $19 billion in 2015. Global investments in financial technology ventures in Q1 2016 were reported to reach $5.3 billion, representing a 67% increase over the same period last year. Still, profitability remains elusive for many large FinTechs, despite attracting large volumes of customers and creating significant revenue. So against this backdrop, I developed my remarks for current MBA students and fellow Smith-school alumni.
The opinions I’ll share reflect a number of conversations I’ve had throughout the year. One, made by Chris Flowers at the International Finance Corporation’s annual FinTech CEO Summit this October, certainly bears mention. In his words, a bank “is not just a business model, it is a regulatory concept and a social undertaking.” So as much as some expect recent investments to radically change the nature of banking, I’m far more optimistic that creative new partnerships will emerge that ease payment processes, reduce fraud, save users money and promote financial planning.
Since this is a more academic audience, my remarks explain how the fabric of the financial industry continues to evolve as new technology players emerge and traditional participants transform their business models. As part of the school’s Marketing and Finance Super Day, I’ll provide insight into the profound transformations taking place throughout the financial sector while sharing graphics like these from our friends at LetsTalkPayments