Emergence of Fintech Companies
                     Click to edit Master title style
EMERGENCE OF FINTECH 
COMPANIES
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ICNliTcRkO tDo UeCdTitI OMNaster title style
The past few years have witnessed unprecedented 
developments in financial technology (“fintech”), 
including innovation in mobile payments, digital 
currencies, blockchain and distributed ledger 
technology, peer-to-peer lending, and marketplace 
lending.
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Source: law.stanford.edu 2
CFIlNicTkE tCoH e IdNitN MOVasAtTeIrO tNitle style
Most fintech innovation has arisen (and further fintech 
innovation is expected to arise) outside the traditional 
financial and banking system, largely driven by non-
bank entities, including venture capital-backed fintech 
startups and emerging companies, as well as non-
traditional providers (e.g., Oracle and Apple).
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Source: law.stanford.edu 3
OClPicEkR AtoT IeOdNitS Master title style
The non-bank entities can experiment in an 
unregulated (or relatively lightly regulated) environment 
and often focus their operations narrowly on the 
provision of a particular set of new financial and 
banking services.
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Source: law.stanford.edu 4
ECMlicEkR GtoE NedCiEt OMFas FteINr TtEitCleH style
Fintech innovation driven by non-bank entities is 
progressively deconstructing the walls that have long 
surrounded the traditional financial and banking system 
and is causing a radical shift by challenging 
conventional value chain, business models, and market 
positioning. 
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Source: law.stanford.edu 5
CCHlAicNkG tIoN Ged CitO MSTaUstMeEr RtiSt’l eE XstPyEleRIENCE
Significantly, fintech innovation is changing costumers’ 
experience and expectations by promoting a more 
client-centric and interactive approach to financial and 
banking services.
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Source: law.stanford.edu 6
DCElVicEkL OtoP MedEiNt TMSa IsNte FrI NtiTtlEeC sHtyle
In addition, recent developments in fintech offer new 
opportunities for client value creation by enabling 
smarter understanding of clients’ needs and the design 
of new personalized products and services.
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Source: law.stanford.edu 7
ACNlAicLkY tToIC eAdLit T MOaOsLteSr title style
Analytical tools that collect and integrate structured and 
unstructured data are now available to support process 
optimization, risk management, and strategic decision-
making. 
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Source: law.stanford.edu 8
DCIGliIcTkA tLo C eHdAitN MGaEster title style
 Banks around the world are taking significant steps in 
this direction, including large investments in client 
services and customer reporting using digital channels, 
creation of internal dedicated digital teams, and 
increases in budget for digital change and innovation. 
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Source: law.stanford.edu 9
FCINliTcEkC tHo  EeCdiOt SMYaSsTtEeMr title style
As the fintech ecosystem matures, banking and 
financial regulatory regimes are also evolving swiftly. 
Financial regulators are now evaluating existing rules 
and are considering the adoption of new regulation to 
better address both the opportunities and challenges 
presented by new technologies. 
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Source: law.stanford.edu 10
RCElGicUkL tAoT eOdRiYt Master title style
Regulatory oversight and regulation are, thus, critical 
factors for the growth of the fintech ecosystem and 
could significantly affect the extent and speed of its 
future developments. 
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Source: law.stanford.edu 11