Financial Services Technology – The Book
Financial Services Technology, Second Edition explains how banks and financial institutions use technology and explores how Fintech companies are revolutionizing the financial services industry. It examines innovation areas and emerging technologies, including digital currencies, blockchain, artificial intelligence, and mobile payments. Key concepts related to cybersecurity, operational risk, and regulation are reviewed in the context of how they impact financial institutions and Fintech companies. This book will serve as a valuable reference for industry professionals and as a learning guide for students and newcomers to the industry.
What's new in the second edition?
The second edition of Financial Services Technology has been updated to cover recent developments in Fintech that are changing the financial services landscape. It examines how banks and other established institutions are adapting their business models and technology strategies to meet new challenges and take advantage of Fintech opportunities.
Several new chapters that have been added to the second edition:
- Innovation – examines how banks are using in-house innovation centers to take advantage of new technologies and collaborate with Fintech companies. The chapter also discusses how distributed ledger technology, e.g. blockchain and smart contracts, provides opportunities for revamping existing technology infrastructure, providing faster and more efficient services. Additionally, the chapter covers financial institutions’ move towards providing open, API-based services, and how artificial intelligence and machine learning technologies are being adopted across the financial services industry.
- Technology Infrastructure and Operations – describes the key CPU, storage, network, application, middleware, database, and cybersecurity infrastructure that banks implement to support their business operations. The chapter discusses the challenges with managing and operating complex information technology environments including concerns related to availability, change management, system upgrades, and outsourcing.
- Operational and Compliance Risk Management – reviews operational risk concepts in the context of financial services and how technology both contributes to and helps mitigate operational risk. The chapter also examines the regulatory and legal constraints that financial institutions must comply with and how they affect technology solutions.
Notable changes to other chapters that were included in the first edition include:
- Payments – enhanced to provide more in-depth coverage of ACH, SWIFT, and card payment technologies.
- Cash management – expanded to cover deposits, cheque remote deposit capture, cash usage trends, and digital currencies (e.g. bitcoin).
- Lending – examines marketplace lending in greater depth and discusses the processes and technologies involved in debt collection.
- Cybersecurity – updated and enhanced to cover the new threats, attack vectors, and security operations.
- Case studies – updated throughout the book, frequently highlighting the impact of Fintech on financial services.