SWITZERLAND, ONE OF THE MAIN MARKETS IN THE WORLD
FinTech, the financial technology industry: a trendy and cool universe which draws the attention of market players, intermediaries and clients. Indeed a wide range of different concepts, technologies, applications, processes and solutions, as the FinTech applies to various subjects:
- the makers of programs and tech solutions, specialized entities, start-ups
- the users, such as operators and intermediaries: banks, portfolio and asset managers, analysts, advisors, and the like
- the end-users, the clients
The Massachussets Institute of Technology (MIT) has defined some main areas within the FinTech macrosystem:
MONEY AND PAYMENTS
Person-to-person transfers via mobile devices
Digital currencies – Cryptocurrencies
Artificial intelligence (AI) and Machine learning
Digitalized Back Office
Robot Advisory – Computerized Financial Consultancy
Securities Settlement – High Speed and Ultra High Frequency (UHF) Transactions
Authentication, compliance, KYC procedures
Security – Encryption
Deed editing via smartphone with predefined patters, without intermediaries
CREDIT AND OTHER ENVIRONMENTS
Non-traditionsl capital raising
Crowdfunding and micro-loans
Direct P2P-B2B loans
Digital assessment of credit risks
Computerized Risk Management
The Blockchain technology is just at the core of the FinTech: a platform of distributed and open databases with decentralized services, also able to operate with cryptocurrencies, make transfers, automatically execute predefined instructions, with no intervention of third parties, and automatically recorded.
Blockchain lastingly records any transactions, but also it guarantees decentralization, transparency and privacy, as when using Bitcoins.
Bitcoin, as well as other cryptocurrencies, works with private “keys” and adresses. Actually anyone can create his own “account” and order transactions from it. The change of traditional moneys into cryptocurrencies takes place on web sites or via special ATM’s.
The Ethereum platform is even more futuristic. It is being joined by banks from several countries, and makes transactions more efficient and hugely faster, just some seconds as compared with the minutes that Bitcoin needs.