The WEALTHTECH Book

Security in the Future of WealthTech

By Bruno Esteves Macedo

FinTech and Digital Banking Speaker, Business Architect, five degrees

The technical advances made in internet-related technologies during the past decades have led to a bold new world and widespread FinTech digital shift. From mobile internet, self-learning artificial intelligence (AI), robotics, big data analytics and self-driving vehicles to the Internet of Things (IoT), we are just at the beginning of a paradigm shift with an increasingly digital, 24-hour connected society. Established financial institutions (FIs) are historically considered as the most resistant industries to disruption by technology. However, they need to look at new technology and partnering solutions if they want to keep up with this new financial society.

The General FinTech Challenge

The exponential growth of FinTech (the industry is expected to manage US$2.2 trillion in assets by 2020) is creating a security concern by pushing commonly offline and time-consuming financial processes to be tucked into online millisecond decisions while managing the same amount of financial assets. FIs are basically trying to transform their traditional businesses into digital-focused, cloud-based and mobile-ready ones, migrating their services to something with a low-capital-cost operation, a focus on data capture, a change from human to algorithms-based service, regulatory arbitrage and a focus on transferring risk management to customers. This is a big ...