FinTech is just short for financial technology and it refers to the application of technology in the financial industry. On the other hand, blockchain refers to the distributed ledger technology behind cryptocurrencies; it allows digital information to be distributed and each piece of data can only have one owner.

1. FinTech & Blockchain
1

2. What is
FinTech & Blockchain
1

3. What is FinTech and Blockchain?
Blockchain: Also referred
to as Distributed Ledger
Technology (DLT)
The technology that underpins digital
currency.
Allows digital information to be
distributed, but not copied. Each
individual piece of data can only have one
owner.
FinTech: Short for
financial technology
Refers to the application of new
technological advancements to products
and services in the financial industry.
Describes any company using the
internet, mobile devices, software
technology or cloud services to perform
or connect with financial services.
3

4. Pillars of FinTech ecosystem
Government and regulators
Investors
Financial institutions
Start-ups
Users
Provide supportive incentives to
help FinTech grow
VCs, angel investors
Banks are working with FinTech
and leverage their innovation
Nimble and innovative
4 Broad categories of users for
FinTech
4

5. Four key FinTech areas
Refers to technology-driven nonbank lending
Digital lending
• Two primary business models: 1. Direct lenders that originate loans to hold
in their portfolios 2. Platform lenders partner with depository institutions to
originate loans, which are purchased.
Growth towards a cashless society
Payments
• Rise of P2P payments using either the Automated Clearing House system
or debit/credit cards.
Digital tools used for creating unified client experiences across all user
devices and platforms
Digital wealth
management
• Rise of robo-advisers that use algorithms to evaluate risk tolerance and let
investors manage portfolios at a distance.
Decentralization through a shared ledger of transactions
Blockchain
• Three main components: 1. peer-to-peer network with randomized groups
2. A digital ledger 3. Third parties- when a third party submits an entry to
the ledger, the nodes work together to either approve/reject transactions.
5

6. How does
Blockchain work?
Party A wants
to send money
to Party B.
Transaction
represented
online as a
“block”.
Block is
broadcast to
every party in
the network.
Those in the
network approve
the transaction is
valid.
Block is added
to the chain,
which provides
transparent
record of
transaction.
Money moves
from party
A to B.
Three critical
ideas of
Blockchain
1. Digital assets are
distributed instead of
copied or transferred.
2. Asset is
decentralized, allowing
full real-time access.
3. A transparent ledger
of changes preserves
integrity of the
document, which
creates trust in the
asset.
6

7. Growth of
FinTech and Blockchain
2

8. Growth of Blockchain
● First got the public’s attention when Bitcoin was
announced
○ a “purely peer-to-peer version of electronic cash”.
○ Creates digital trust (transparent, time-stamped and
decentralized).
● Blockchain separates from Bitcoin
○ People start to realise that blockchain can be used for other
purposes (e.g. smart contracts).
○ More people begin to invest in it.
8

9. ● Transition from “Proof of Work” to “Proof of Stake”
o Proof of Work: Solve math question, get reward (Mining).
o Proof of Stake: Validators bet on blocks.
 Energy-saving (PoW takes up a lot of electricity for each
transaction).
 Safer Network (Hackers need to own >50% of the network
to make any malicious attack).
Growth of Blockchain
9

10. Growth of FinTech
FinTech 1.0
(1866 – 1967)
● First time finance
combined with
technologies.
● First transatlantic
cable.
FinTech 2.0
(1967 – 2008)
● Shift from
analogue to
digital.
● First ATM
● Invention of
electronic trading.
● Creation of online
banking and e-
commerce.
FinTech 3.0/3.5
(2008 – present)
● Emergence of new
players alongside
existing large
companies.
● Bitcoin first released
● Other forms of
payment created
(e.g. Apple Pay).
10

11. Blockchain in FinTech
● FinTech enhanced traditional financial services with applications.
● Blockchain enhances FinTech.
➢ Provides better security
o Records of transaction cannot be altered.
o Easy to detect malfunctions.
➢ Provides seamless and efficient transactions with no middleman.
➢ Provides trust
o Smart contracts guarantee peer integrity.
o Transparent.
11

12. Usage of
FinTech & Blockchain
3

13. Blockchain in Asset Management
● Redundancy of intermediaries
○ Reduce costs.
○ Speed up settlement.
○ Increase resilience.
○ Improve transparency.
● Improved fund valuation
○ Enhancing accuracy and timeliness of record
keeping.
○ Providing a time-stamped, source of pricing.
13

14. Blockchain in Remittance
● No longer reliant on traditional intermediaries:
○ Estimated to reduce transaction costs by 40% to 80%.
○ Transaction takes 4 to 6 seconds instead of 2 to 3 days.
○ Makes businesses more agile.
● Simplified KYC requirements:
○ Decentralised - Every user has exact copy of ledger.
○ Verifiable and irreversible record.
● Improved security:
○ More secure as hackers must alter all previous transactions to
change anything.
14

15. ● Members-owned Financial Cooperative based in Singapore.
● Enables direct cross border peer-to-peer transfers.
● Allows transaction settles to take place 25x faster.
● Service provided to members at no cost.
15

16. Blockchain in Insurance
● Fraud and abuse prevention
○ Data can be shared and verified securely.
○ Suspicious patterns can be easily spotted.
● Improved transparency and trust
○ Data is immutable.
○ Customers get visibility to what data insurers have of them.
● Streamlined claim management
○ Can trigger automatic claim processing (e.g. anti theft sensors
going off).
○ Payouts can be immediate on blockchain environment.
16

17. Links to
other technologies
4

18. A.I. in FinTech:
Impact and how it can help
•Transaction robots are used to
provide financial advisory to
users.
Digital financial
coach/advisor
•Bot program provides an easy-
to-use transaction search.
Visualization and
transaction
search
•AI can automate customer
rankings based on their risk
data from low to high.
Profile of
customer risk
•AI powered model can provide
an immediate assessment of a
customer’s credit risk.
Pricing and credit
risk evaluation
Accurate decision making
•Machines will analyze the data
and produce recommended
results.
Automated customer
support
•Chatbots can deliver human like
customer service at low cost.
Insurance management
•Automate the underwriting
process, thereby speed up the
process.
18

19. Use cases for A.I. in FinTech
Logs into account
using face ID via
mobile.
Voice used as a second
layer of security to
confirm ID.
Purchases
insurance via a
chatbot.
Luggage gets damaged
on the trip, texts a photo
to the Chatbot and the
cost of the luggage is
transferred on the same
day.
A.I. is becoming
more commonly
used in a variety of
FinTech
applications. Not
just in identification
and authentication,
but also in complex
services like risk
analysis and
insurance claims.
19

20. IoT in FinTech: Benefits of
FinTech and IoT integration
Instant data collection and
processing
• Offer increased mobility and
convenience, improved security.
Making wireless settlements
• Wearable smart devices are replacing
smartphones and traditional credit cards
in making wireless payments and cash
withdrawals.
Smooth interaction
between financial devices
• IoT in banks makes it possible for
automated cashless payments.
Location authentication
• IoT devices (e.g. mobile phones) provide
location data and banks can reject
transactions if location of request is
suspicious.
20

21. Global &
Regional Scene
5

22. FinTech Global & Regional Scene
128B
310B
2018 2022
CAGR 24.8%
Growth is attributed to the
increased funding and
investments in FinTech
startups, rising internet
penetration.
Increasing popularity
of digital payments,
exponential growth of
e-commerce.
22

23. Growth in
digital
commerce
market.
Proliferation
of mobile
technology.
Growth in
digital
payments
sector is
driving the
market.
Can now pay
for goods and
services via
cryptocurrency,
loyalty points.
Companies
increasingly
using
blockchain
technology for
better security
and operational
efficiency.
FinTech Global & Regional Scene
23

24. Blockchain Global & Regional
Scene
3B
39.7B
2020 2025
CAGR 67.3%
Growth is attributed to the
increasing number of
venture funding and
investments in blockchain
technology.
Increasing popularity of
blockchain technology
in retail and supply
chain management.
24

25. Top 3 countries leading in
FinTech innovation
United States
• In 2019 FinTech
investments reached
$9.5b in USA, with
considerable rise in
digital currencies
services.
United Kingdom
• FinTech innovations
are thriving in UK
thanks to rigorous
policy and efficient tax
deductions.
Singapore
• Government invest
approximately $735m
in 2019 on FinTech
projects, hold various
events that encourage
innovations and
investments.
25

26. FinTech trends in Asia
China leads the world
in adoption of FinTech
87% adoption rate vs global
average of 64% in 2019.
99.5% are aware of online
apps that facilitate money
transfer, mobile payments,
and non-bank money
transfers.
Virtual bank
competition heats up
Hong Kong bank regulators
approved licenses for eight
virtual banks.
Spike in banking consumers
using virtual banking
services from 20% in 2018
to 37% in 2020.
Open banking takes
off
Personal finance app
store with virtual
financial services
tailored to individuals
particular needs will be
available 24/7.
26

27. Key drivers of FinTech in China
Easy
access to
data
Largest e-commerce industry in the world, data generated
provides strong backbone for FinTech in China.
Large user
base and
product
diversity
Large population and broad application of mobile technology
compared to other countries. By operating in more sectors,
FinTech companies have more opportunities in creating products
and reaching customers.
Encouraged
by
Government
Government encourages all kinds of financial innovation, and
overall regulatory environment is quite flexible.
27

28. FinTech trends in Japan
Cashless
payments
Discount schemes implemented to subsidize the installation of
cashless payment terminals for both merchants and consumers.
Angel Tax
Reform
Implemented to boost consumer’s investment in private company
equities, expected to provide equity crowdfunding with liquidity by
flowing large amounts of consumer’s cash.
Crypto
Assets
Japan amended the Cryptocurrency Act, permitting
cryptocurrencies as a form of payment in Japan.
28

29. Local FinTech &
Blockchain scene
6

30. MAS set up a FinTech
Innovation Group to formulate
and develop regulatory policies
and development strategies.
Launch of FinTech Office,
aimed at becoming a “one-
stop” virtual entity for all
FinTech matters.
Accelerators play a critical role
in providing funding for growth
and expansion in the
ecosystem.
Singapore FinTech Festival,
the world’s largest FinTech
festival and global platform for
FinTech community to connect
and collaborate.
Local
FinTech
ecosystem
30

31. Local FinTech startup scene
FinTech startups still
in seed or early
growth stage.
FinTech startups
tackling numerous
areas of financial
services.
Payments &
remittances
Over 80
90%
Most crowded subsegment
with 20 startups.
Dragon Wealth- a platform
designed specifically for
financial advisors to
connect more easily with
new and current customers.
Other
startups
include
31

32. FinTech landscape in Singapore
Issuance of up to 5 digital bank licenses
• Will add diversity and help strengthen Singapore’s banking system in the digital
economy of the future.
Industry-wide research platform supporting FinTech investments
• Designed to help increase transparency, enhance investors’ confidence and
accelerate decision-making.
Launch of BIS Innovation Hub Centre in Singapore
• Enhance the understanding of financial technology, and aid development of
innovative solutions to benefit and enhance the financial system.
32

33. Project Ubin
● Collaborative project with industry to explore use of Blockchain and DLT for
clearing and settlement of payments.
● Goal is to develop simpler to use and more efficient alternatives to central
bank issued digital tokens.
● Started in November 2016 and concluded in July 2020.
● 5 phases with each phase aimed at solving challenges and then publishing
the reports.
● Findings were made publicly available to spur further industry development.
33

34. COVID-19 Impact on the
FinTech Industry
7

35. How is COVID-19 changing the
FinTech Industry?
Rise in demand of
Robo-advisory
companies
Growth attributed to
people wanting to seize
the present opportunity
and looking forward to
intelligent investment
solutions and in-depth
market analytics.
Enabling digital
transformation
Enabling businesses to
stay relevant by assisting
them in the process of
digital transformation.
Customers can make any
number of purchases
online.
Contactless
payments on the rise
Increased mobile use and
widespread dependence
on e-commerce aid the
growth of innovative
cashless payments.
35

36. Opportunities for FinTech companies
in the COVID-19 pandemic
Mobile app payments
are more common
With majority of the
population working from
home, and authorities
discouraging people from
using cash, there is a
substantial increase in
usage rate of payment
FinTech apps.
Harnessing on IoT
COVID-19 will accelerate
the adoption of IoT-
enabled payments, as
consumers pay for gas or
food without handling
cash or other potentially
infected surfaces.
Adoption of new
digital platforms
With social distancing
measures in place,
FinTech companies
powering digital
commerce will see a
significant boost.
36

37. Challenges faced by FinTech
companies
Data privacy challenges
Usually hold large volumes of
highly sensitive user
information, and as IT
infrastructure is being
accessed remotely due to
COVID-19 restrictions, easy
for hackers to target attacks
at FinTech data sources.
Application
security challenges
Transition to cloud is
on the rise during
COVID-19, and there
are concerns regarding
the maintenance of
cloud security.
Venture capital
funding may be
impacted
Markets are volatile
right now, and firms may
face challenges
fundraising as investors
become more cautious.
37

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