What the Book Covers
Financial Services Technology provides a thorough and up-to-date guide to the sweeping changes that are taking place in the financial services industry. Banks and other financial institutions are facing pressure like never before from technology giants as well as up-and-coming financial technology (Fintech) companies. Established companies such as Apple and Google have massive numbers of users and the financial resources that enable them to directly challenge banks in core business areas such as payments. At the same time, Fintech companies have leveraged new technology and business models to provide financial products and services that banks, in many cases, cannot or are not prepared to offer. The technology and business considerations behind this changing landscape are discussed throughout the chapters in this second edition of this book.
Major technology advancements have been developing on a yearly basis. Mobile phones have evolved to become mobile devices that do everything from making credit card transactions at merchant checkouts to capturing biometric information that can identify users. Digital currencies, such as bitcoin, have emerged as new payment platforms that operate outside the bounds of established payment systems. Blockchain technology has displaced trusted parties (such as banks) for some payments, and has the potential to do so in many other applications. Furthermore, cybersecurity threats have multiplied to a level where even national governments and data custodians, such as consumer rating agencies, cannot keep highly sensitive information secure.
Demographics have also shifted the balance within financial services. Some segments of the population, most notably the Millennial generation, have shunned some traditional financial products, such as credit cards, and have been more open to using financial services provided by Fintech companies. Likewise, the economic growth of China and other Asian countries has led to new and different models for providing financial services that cater to the cultural, economic, and regulatory characteristics of those markets.
This book provides a foundation for understanding the revolution that is currently taking place in the financial services industry. On one hand, innovations by technology firms are breaking the exclusivity of the banking industry. On the other hand, established financial institutions are striving to quickly adapt and find new ways of working so that they can maintain their place in a rapidly changing world. By learning the fundamentals of financial services processes, technology and solutions, and understanding how they apply to real-world examples, readers will be able to better appreciate the transformation that is currently taking place.
View the Table of Contents.
Background of the Book's Development
Financial Services Techology was originally developed to support the Master of IT in Business Financial Technology (FinTech) program at Singapore Management University (SMU). The author, Randall E. Duran, began teaching courses on financial services technology at SMU in 2002 and helped design and establish the masters program in financial services at SMU's School of Information Systems in 2007. As part of that program, he developed and taught the Corporate and Institutional Banking Technology and Financial Markets Technology courses. Financial Services Techology began as the course notes for those classes, which were enhanced and expanded over a number of years to evenually take book form. In 2012, Cengage Learning Aisa agreed to publish the manuscript and in 2017, the second edition was released.