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Creating Strategic Value through Financial Technology

Book Description

Lessons in innovation from key FinTech trends and successes

Creating Strategic Value through Financial Technology explores the growing Financial Technology (FinTech) industry to provide insight on how traditional financial institutions and FinTech companies can boost innovation and enhance valuation in a complex regulatory environment. In plumbing the depth and breadth of several niches within in the FinTech sector, author Jay Wilson uncovers key themes that have contributed to the industry's success; in this book, he maps them together to provide useful guideposts for investors, entrepreneurs, and traditional institutions looking to facilitate growth as technology and financial services collide. With an expert's perspective on FinTech history and outlook, certain trends and examples of value-enhancing strategies stand out. FinTech niches covered include: payments, crowdfunding, alternative/marketplace lending, the blockchain, and technology solutions in the context of banking, insurance, and investment companies.

There is no denying the growing importance of technology in the financial services industry, and the FinTech sector offers valuable solutions for a diverse array of financial services providers and their customers. This book guides you through several niches of the FinTech sector, and highlights the most important takeaways from recent endeavors.

  • Navigate the financial technology sector
  • Enhance customer and product offerings
  • Improve efficiency and cost structure
  • Enhance profitability and company valuation from the intersection of technology and finance

Innovation and customer preference is a key driver of FinTech's growth. Customers are demanding better value and convenience, and the organizations that provide it are reaping the rewards of growth. As financial regulations grow more and more complex, and customers are presented with more and more options, it is becoming imperative for traditional institutions to modernize processes and carve out a place in the future of financial services. Creating Strategic Value through Financial Technology provides a handbook for navigating that space, with practical guidance on how FinTech companies and traditional financial institutions can enhance profitability and valuation from the trends.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Preface
  6. Acknowledgments
  7. Section One:
    1. Chapter 1: What Is Financial Technology?
      1. Technology's Impact on Financial Services
      2. What Is FinTech and Who Are the Players?
      3. Why the Hype for FinTech?
      4. Why Is FinTech Potentially So Important to Society?
      5. Recent Trends and Market Conditions for the FinTech Industry
      6. Conclusion
      7. Notes
    2. Chapter 2: Community Banks and FinTech
      1. Is FinTech a Threat or an Opportunity for Community Banks?
      2. FinTech's Potential Impact on Bank Valuation
      3. How Community Banks Can Help FinTech Companies
      4. Conclusion
      5. Notes
    3. Chapter 3: The Historical Context for FinTech
      1. Introduction
      2. FinTech History
      3. Visa and MasterCard: The Largest IPOs in FinTech History
      4. Core Vendors
      5. Notes
  8. Section Two:
    1. Chapter 4: State of Community Banks Embracing FinTech Today
      1. Introduction
      2. Overview of U.S. Community Bank Industry Trends
      3. Banks and FinTech Increasingly Intersect
      4. Serving More Customers Digitally
      5. Evolving Regulatory Oversight of FinTech
      6. Conclusion
      7. Notes
    2. Chapter 5: The Alternative Lending Niche
      1. The Mortgage Market
      2. The Consumer Lending Market
      3. Government Regulation of Alternative Lending Platforms
      4. Conclusion
      5. Notes
    3. Chapter 6: The Payments Niche
      1. Trends to Watch
      2. Digital Currencies and Blockchain Technology
      3. Conclusion
      4. Notes
    4. Chapter 7: The Wealth Management Niche
      1. Introduction
      2. The Evolution of the Online Brokerage Industry
      3. The Rise of Robo‐Advisors
      4. Conclusion
      5. Notes
    5. Chapter 8: InsurTech and the Future of Insurance
      1. Introduction to InsurTech
      2. Technology Trends in Insurance
      3. Conclusion
      4. Notes
  9. Section Three:
    1. Chapter 9: Partnering with a FinTech Company
      1. Introduction
      2. Conclusion
      3. Notes
    2. Chapter 10: Early Stage FinTech Valuation Issues
      1. Introduction
      2. Why You Should Have a Valuation Performed
      3. Valuation Considerations for FinTech Companies
      4. What about Preferences and FinTech Valuations?
      5. Special Issues: Valuations for Other Stakeholders
      6. Conclusion
      7. Notes
    3. Chapter 11: Acquiring a FinTech Company
      1. Introduction
      2. Recent Trends in FinTech M&A Activity
      3. Metrics to Analyze FinTech Transactions
      4. Accounting Considerations and Goodwill Creation in FinTech Deals
      5. Special Issues to Consider with FinTech M&A
      6. Conclusion
      7. Notes
    4. Chapter 12: Liquidity Options Beyond a Sale
      1. Introduction
      2. Liquidity Options
      3. Is Your Buy–Sell Agreement Solidly Built?
      4. Conclusion
      5. Notes
    5. Chapter 13: Is There a Bubble Forming in FinTech?
      1. Introduction
      2. Factors Leading to a Bubble?
      3. Signs That a Bubble May Be Forming in FinTech
      4. Case Study of a FinTech Failure
      5. Conclusion
      6. Notes
  10. Index
  11. End User License Agreement