Creating Strategic Value through Financial Technology

SECTION One

Section One of this book introduces the reader to FinTech and discusses the reasons behind the excitement and interest in the sector globally and more specifically for financial services in the United States. Additionally, we examine more specifically how FinTech can have a significant impact on community banks through opportunities to enhance customer service offerings, efficiency, and profitability in a challenging operating environment. Lastly, we delve into the history of FinTech to determine themes and trends from some of the more mature FinTech companies.

Chapter 1 is titled What Is Financial Technology? We answer that question and present an overview of current trends in the FinTech industry. We also provide perspective on why FinTech is important and receiving significant attention from investors, regulators, entrepreneurs, and management/boards of traditional financial services companies.

Chapter 2, Community Banks and FinTech, discusses traditional bank valuation trends and drivers and shows how incorporating FinTech into your bank's existing strategy can help improve the profitability and valuation of your community bank. This chapter is also important for FinTech entrepreneurs as it demonstrates the potential value proposition for FinTech companies in the community banking sector. Successful FinTech companies need to be able to demonstrate their potential to improve the profitability and valuation of banks in order to attract them as customers or partners. ...