This document discusses the future of financial technology. It begins with a brief history of money and commerce, then defines financial tech as including payments, investments, and financial reporting done online and through devices. The document outlines how financial tech has democratized access to capital, sped up funds movement, and increased transparency. It discusses challenges like fraud and security that the industry faces moving forward. In conclusion, the future of financial tech is seen as improving transaction experiences through financing, digital currency, devices, identity management, and analytics services.

1. Future of Financial Tech
Poornima Vijayashanker
poornima@femgineer.com
@poornima
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2. Background
• R&D Engineer @ Synopsys
• Founding Engineer @ Mint.com
• Founder & CEO @ BizeeBee
• Founder of Femgineer.com
• Instructor @ Duke University
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3. Rich history.
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4. Financial Tech.
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5. What is financial tech?
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6. Payments
Investments
Reporting
Funding
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7. Agenda
• Online
• Devices
• Financial Reporting
• Future of Financial Tech
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8. Life used to be pretty simple...
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9. Life used to be pretty simple...
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10. Little more sophisticated.
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11. Commerce
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12. Fancy Financiers
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13. Simple storage.
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14. Boring.
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15. People started moving around...
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16. and money came along!
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17. Money evolved.
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18. Meanwhile markets started to feel a crunch.
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19. Housing crunch.
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20. Banking crunch.
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21. Widespread!
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22. But let’s get this clear...
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23. All of this....
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24. Did not lead to this!
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25. Financial tech frees people.
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26. 26

27. Collect
(Selling
goods and
services.)
Track
(Flow of
funds.)
Financial Technology
e-commerce & devices online banking
Finance
(Borrowing
and lending.)
micro-lending & crowd funding
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28. Goal of technology is to make life easier.
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29. Contributed to growth globally.
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30. Online and in emerging markets.
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31. 31

32. By democratizing access to capital.
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33. Cheaper to start a business.
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34. But it is still up to the owner to become profitable!
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35. Depends on product.
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36. Speeding up the movement of funds.
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37. Depends on amount of money and where
it’s going.
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38. Adding transparency to the system.
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39. Other Financial Tech Use Cases
• Trading platforms
• Forecasting
• Risk Assessment
• Reporting
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40. Commerce
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41. Very limiting in terms of geography.
Seller
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42. Very limiting in terms of available goods and
services.
Buyer
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43. But now we have e-commerce!
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44. Opened Up More Markets
• Peer-to-Peer
• Larger inventory
• Access across geographies
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45. Made it easier to sell!
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46. Simple Setup
• Sign up for an Account: 15 minutes.
• Bank makes deposits to check ownership: 1-2 business days.
• Post goods and services: 15 minutes.
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47. What’s the future of e-commerce?
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48. US Retail e-commerce Sales
2013: $259B
2012: $225.5B
14.8% Increase
e-Marketer: Retail Ecommerce Set to Keep a Strong Pace through 2017
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49. ?vs
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50. ?
In the US in 2012
Online fraud cost e-retailers $3.5B in 2012
0.9% of Online Revenue
Higher incidents internationally but order
rejection higher.
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51. Online Reputation
• Fraud scoring model
• Web site behavior
• Order history
• Order velocity monitoring
• Identity trail - Good citizen vs. Bad citizen
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52. More Sophisticated Methods
• Card verification - doesn’t work if card is stolen
• Two-factor authentication
• Address verification services
• Contact card issuer
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53. Balancing Competing Interests
Scalability
Handle large sets of
transactions.
Speed
Provide liquidity faster.
Get goods faster.
Security
Verify identity with
more sophisticated
algorithms.
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54. Benefits of Devices
• Easier to get approved
• Easier to transact
• Lower transaction fees
• Offer quicker funds transfer
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55. Device Market Limitations
• Commoditized
• Fragmentation
• Maybe suffer the same fate as credit cards - unless there is an aggregator!
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56. Device Agnostic
• Invoicing
• Billing
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57. What about for the consumer?
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58. Peer-to-Peer exchange gotten easier.
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59. Financial Planning
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60. Financial Planning
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61. Unsolved Problems
• Access to capital for the unbanked
• Identity theft
• Payday loans
• International banking
• International employment & taxation
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62. Future of Financial Tech
• Improving the experience of financial transactions for businesses and
consumer.
• Financing
• Digital currency
• Devices
• Identity management
• Reporting and Forecasting services
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63. It’s not just about making $ it’s about securing it.
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64. Review
• Online
• Devices
• Financial Reporting
• Future of Financial Tech
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65. Additional Resources
• Office Hours
• Online Mentoring
• Courses
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66. Q&A
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