FinTech Magazine May 2020 | Page 32

FINTECH

32

Bill Genovese , Vice President Corporate Strategy – Banking & Financial Markets , Huawei

we use . The rise of the sharing economy and the provision of peer-to-peer services is bypassing the traditional banking model . Companies like Uber , Alibaba / Ant Financial , Tencent / WeChat and Amazon , says Genovese are all examples of large platform providers that are enabling and fuelling these expectations through the application of technologies like AI , payments and blockchain , IoT and Big Data .

“ Examples like this demonstrate the new normal that is having access to these digital financial services via your smartphone 24 / 7 ,” he adds . “ And alongside this you have players moving into the traditional financial services landscape – the first thing that left the bank was payments , for example , and now we ’ re seeing the same thing with credit and lending , or microfinance . It feeds perfectly our modern consumption needs and the way that , through those raised expectations , we want to deal with our finances : you may need a payday loan , which you can get on your smartphone now , or you deal specifically with robo-advisors through your device , or manage your investments etc . It ’ s a really different proposition .”

In his latest work about the next generation of financial services , Genovese recognises six prevalent business models that are either already present in the space , or are moving into it :

● Leading digital commerce platforms , such as Amazon and Alibaba

● Leading consumer technology companies , such as Apple and Google

● FinTechs , such as PayPal , Betterment , SoFi , Airwallex and others

● Digital , virtual , challenger and internet banks , such as WeBank , N26 , Revolut , and Monzo

● Telcos and players from other industries , such as PingAn , OrangeBank , and Gazprombank

● Incumbents ( or “ Fincumbents ”)

MAY 2020