Chapter 1. Data Science, Banking, and Fintech: Fitting It All Together
Long considered an impenetrable fortress dominated by a few well-known names, the banking and financial services industry is currently riding a giant wave of entrepreneurial disruption, disintermediation, and digital innovation. Everywhere, things are in flux. New, venture-backed arrivals are challenging the old powerhouses. Banks and financial services companies are caught between increasingly strict and costly regulations, and the need to compete through continuous innovation.
How does an entire industry remain relevant, authoritative, and trustworthy while struggling to surmount inflexible legacy systems, outdated business models, and a tired culture? Is there a way for banks and other traditional financial services companies to stay on budget while managing the competitive threat of agile newcomers and startups that do business at lower costs and with better margins? The threat is real. Can established institutions evolve in time to avoid being replaced? What other strategies can protect their extensive infrastructures and win the battle for the customer’s mind, heart, and wallet?
Financial technology, or fintech, is on fire with innovation and investment. The movement is reshaping entrepreneurial businesses and shaking the financial industry, reimagining the methods and tools consumers use to manage, save, and spend money. Agile fintech companies and their technology-intensive offerings do not shy away ...