Trésorier/Treasurer magazine - N°94 - Juil/Août/Sept 2016 - (Page 12)
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE
- JUL /
AUG / SEP 2016
Does the future belong to "FinTech"? We are seeing a true technological revolution that will radically rearrange
the landscape of banking in the short term. A transformation is in progress, but some of the people affected seem to be
doing remarkably little about it. If they wait too long, some financial institutions could miss the digital train and be left
standing on the platform. We must not stick our heads in the sand and pretend that nothing is happening.
Even less must we think that, come what may, banks and other financial institutions will always be needed.
The end can come through doing nothing, too.
"Tomorrow belongs to those
who can hear it coming" (David Bowie)
The future belongs to "FinTech", a grotesque word but one in
keeping with our times, a contraction of financial and technology. In the "FIN", we see or should see the banks and other
financial institutions. However, it is not certain that all of them
have taken on board this necessary and vital transformation in
their business model. The technology is here and continues to
beam out its enormous potential at lightning speed. Will the
"financials" be able to turn it to their advantage and adapt to
this technological revolution? The question is vital, but difficult
to answer. To paraphrase Alvin Toffler, the 4th wave is [missing
text?], although some people dispute it vigorously. It is no
longer an opportunity to be grasped but a precondition of longterm survival.
We think that the initial claim (the future belongs to Fintech)
is indeed true. The future of finance lies with digital technology, and nothing will be as it was before. Technology will be
to finance what the steam engine was to the Industrial Revolution. The way in which financial companies react will reshape
the landscape, particularly for payments in Europe, but also for
finance in general - trade finance, funding, disintermediation,
online platforms and others. Where treasurers see an opportunity, banks see a threat. There lies the rub.
Spectators in a play performed without treasurers
Treasurers, key players in this digital play that is unfolding
without them, have decided to make themselves heard and to
mount the stage. As with the new financial regulations, they
forgot to include treasurers, even though they are in the front
line of those affected. Taking action, rather than being on the
receiving end of these changes, is the aim of EACT, the European Association of Corporate Treasurers. They also want to be
consulted on electronic payments, instantaneous payments
and the possible use of block chains to replace clearing houses,
for instance. In the final analysis, who would reject a payment
system that is more secure, more transparent, cheaper and that
has greater traceability. That, however, is what block chain
technology offers in the short term. Banks and other financial institution should see the new entrants to the market, the
"financial start-ups", as being worthy of copying rather than as
being disruptive. But nevertheless...
In any change lies opportunity
As with the foreign exchange market with online platforms and
peer-to-peer solutions, or as for trade finance with dynamic
discounting solutions, for example, Fintech has already created
a disruption or even a break. Moreover, the PSD2 Directive
requires existing operators to open up to outsiders and thereby
to increase competition. Unfortunately, the banks and other
financial institutions are ill-prepared to harness these new
technologies and take them on board. The latter are a sign of
disintermediation. They must try to avoid losing everything in
the free-for-all through not doing enough.
Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°94 - Juil/Août/Sept 2016
Table of contents
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Philippe Gelis - Kantox - Fintech and the future of banks
Lost in transformation
Everything has a price – a transfer price
Treasury Survey - an unprecedented picture of treasury activities in Luxembourg
The impact of negative rates on Treasury and Risks Management Systems
Towards reporting harmonisation?
Understanding the Treasury impact of BEPS
Impacts of Single Resolution Mechanism and Bail-in for European Banks
Supply chain? Not concerned?
Collateral management and the Corporate Treasury function.
Efficiently Managing Cross-Border Payments in Turbulent Times
How Mid-Market Companies Can Efficiently Manage Enterprise-wide FX Risk as they Grow
Investing surplus cash in repos
A wind of technology changes in the treasury management world
Invoicing can be fun….?
Comment améliorer la performance des fonds de pension européens
15 MINUTES WITH O2Finance
THE FINANCIAL RISK OBSERVATORY
LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°94 - Juil/Août/Sept 2016