Creating a Bridge Between Fintech and FinServ

Fintech has exploded in recent years, but how can you connect it to your FinServ environment?

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Deloitte wrote a very informative paper recently titled Fintech trends: Five insights for now and the future.  One of the key points highlighted in this paper is that the traditional firms should not be under-estimated in their ability to respond:

“A large number of our clients are taking aggressive action to determine how they can use these technologies within their ecosystems. They're acting as venture capitalists and investing in their internal projects to see what specific problems these technologies can solve.” Dilip Krishna, Managing Director and head of innovation for Deloitte & Touche LLP’s financial services businesses

The explosion of the phenomenon called Fintech in recent years has been very exciting to watch.  Traditional banking and financial services (FinServ) systems are being pressured by smaller technology startups.  A transformation of the industry is at hand and the status quo is being challenged like no other period in banking history.  Though the fabric that our industry is built on is changing rapidly, the fundamental business model of providing innovative financial products including risk management, cash flow management, transaction processing, investing and lending are still based on the same foundational principles. 

With this in mind, I recently set out to create examples of utilizing the Qlik platform in the Fintech space.  The bottom line is that these applications are not much different from the types of solutions that our Financial Services customers build.  Fintech is just another data source for Qlik:

Ripple distributed financial ledger:

Ripple is a Fintech company that provides customers the ability to exchange cross currency payments using their distributed ledger technology.  Working with our Qlik partner (Pomerol Partners) we utilized the Restful API’s provided by Ripple to access all 8.7 million payments transacted on the Ripple platform. 

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Find out more about this technology and see the Qlik demo on a webinar we recently ran with the American Banker: https://www.americanbanker.com/web-seminars/surfacing-the-value-of-blockchain-with-analytics?feed=00000158-2a66-dc8a-ab78-6fee1f210000

Lending Club peer-to-peer lending and alternative investing:

Lending Club provides 116 attributes/dimensions on all of their loans originated (back to 2007), in this “Pricing for Risk” solution we analyze everything from pricing across different risk categories to vintage charge-offs and demonstrate Qlik’s ability to make extremely complex analysis available in a way that is easy to understand, governed and accessible to the entire organization:

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A version of this application is available in the ‘Qlik Cloud open’ area here: https://qlikcloud.com

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The “bridge”

A small sample of Fintech, yes, but my point is that these Qlik solutions look and feel very similar to solutions that have been created by our existing customer base of 4,000+ Financial Services firms.  That is because the business model itself and the analytics needed to support the business are not necessarily changing! 

Whether it is Fintech, Insurtech, Regtech or any other new & exciting technology, there is one certainty…the data from these systems will need to be combined with other information to get a complete picture of the customer relationship, profitability and risk profile of the business.  The Qlik platform allows a firm to accelerate this part of the project, in fact, focusing on the business purpose and performance and ultimately creating an analytics bridge between all of the necessary data to make good business decisions.

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