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<p><b>Introduction 1</b></p> <p>About This Book 1</p> <p>Foolish Assumptions 2</p> <p>Icons Used in This Book 2</p> <p>Beyond the Book 3</p> <p>Where to Go from Here 3</p> <p><b>Part 1: Getting to Know Fintech 5</b></p> <p><b>Chapter 1: Navigating the FinTech Landscape 7</b></p> <p>What Is FinTech, Anyway? 8</p> <p>Analyzing FinTech’s Dimensions 10</p> <p>Understanding What Has Changed in FinTech 13</p> <p>Highlighting the Size of Global FinTech 15</p> <p>Discovering a Few Important FinTech Terms 18</p> <p><b>Chapter 2: Understanding What’s Disrupting the Financial Industry (and Why) 21</b></p> <p>Providing Trust and Value 22</p> <p>Trust 22</p> <p>Value 23</p> <p>Weighing Wall Street against Silicon Valley: Where Disruptors Live 25</p> <p>Examining the Role of BigTech 28</p> <p>BigTech and payment platforms 28</p> <p>BigTech partnership opportunities 29</p> <p>How BigTech can help utilize data 29</p> <p>Barriers to greater BigTech participation 30</p> <p>Understanding Where the Disruptions are Happening 32</p> <p>Banks 33</p> <p>Asset managers 34</p> <p>Insurance 34</p> <p>Regulation and legal work 35</p> <p>Payments 36</p> <p>Looking for the Opportunities 36</p> <p>Partnership opportunities 36</p> <p>Exploiting digitalization with AI 37</p> <p>Enhancing data portability 37</p> <p><b>Chapter 3: The Role of Regulation in FinTech 39</b></p> <p>Supervising FinTech 40</p> <p>Understanding that location matters 40</p> <p>Recognizing that more regulations are coming 42</p> <p>Leveling the playing field 42</p> <p>Examining Vendor Risk Issues 44</p> <p>Introducing the Regulators 45</p> <p>The United States of America 45</p> <p>The United Kingdom and Europe 47</p> <p>Investigating Regulatory Changes 51</p> <p>Payment Services Directives 51</p> <p>The General Data Protection Regulation 52</p> <p>Highlighting RegTech Opportunities 55</p> <p><b>Part 2: Learning the Technology 57</b></p> <p><b>Chapter 4: Defining the Tech Underpinning FinTech 59</b></p> <p>Finding a Fix in FinTech 60</p> <p>What’s the problem? 60</p> <p>Why FinTech now? 61</p> <p>Creating API Strategies 62</p> <p>Understanding the concept 62</p> <p>Looking at API benefits 63</p> <p>Developing an API strategy 64</p> <p>Including REST and RAML 65</p> <p>Trying tips for API success 66</p> <p>Reviewing APIs and security vulnerabilities 66</p> <p>Understanding Event-Driven Software 67</p> <p>Testing and implementation 69</p> <p>Language support 70</p> <p>Building on Agile: Microservices and More 71</p> <p>Waterfall development 71</p> <p>Agile design 73</p> <p>Microservices 74</p> <p>Bundling Efficiencies: Batch Processing 80</p> <p>Improving Data Management 81</p> <p>Distinguishing the types of data 81</p> <p>Validating, enhancing, and cleansing data 83</p> <p>Making enterprise data management more efficient 83</p> <p>Working with CPUs and GPUs 85</p> <p>Comparing CPUs and GPUs 85</p> <p>Planning for success 86</p> <p>Estimating the potential improvement 87</p> <p>Choosing a Programming Language 88</p> <p>Python 89</p> <p>Julia 91</p> <p>R 92</p> <p><b>Chapter 5: Confronting the Compute Conundrum 93</b></p> <p>Determining Compute Requirements 93</p> <p>In-memory computing 94</p> <p>Virtualization 95</p> <p>Making Sense of DApps 95</p> <p>Comparing DApps to traditional applications 96</p> <p>Understanding blockchain 99</p> <p>Knowing where to find DApps 100</p> <p>Connecting DApps, Artificial Intelligence, and FinTech 102</p> <p>Looking at permissioned blockchain 103</p> <p>Understanding Quantum Computing 104</p> <p>How quantum computing works 105</p> <p>The drawbacks of quantum computing 106</p> <p>How quantum computing fits into FinTech 107</p> <p><b>Chapter 6: Calling Up the Cloud 109</b></p> <p>Getting to Know the Cloud 110</p> <p>Looking at the cloud’s key traits 111</p> <p>Checking out the benefits of the cloud environment 111</p> <p>Introducing types of cloud services 112</p> <p>Choosing between private and public clouds 117</p> <p>Cloud bursting 120</p> <p>Developing an Optimal Cloud Strategy 121</p> <p>Reviewing data security and encryption 121</p> <p>Surveying data states 124</p> <p>Considering cloud scalability 125</p> <p>Understanding cloud-based virtualization 126</p> <p>Using self-service provisioning 127</p> <p>Monitoring performance 128</p> <p>Evaluating potential security risk on the cloud 129</p> <p>Understanding Privacy Compliance and Government</p> <p>Requirements 131</p> <p>Data protection laws 132</p> <p>Data localization laws 132</p> <p>Data sovereignty laws 133</p> <p>Access to information laws 133</p> <p>Seeing How FinTech Helps with Cloud Strategies 133</p> <p><b>Chapter 7: Understanding Blockchain beyond Bitcoin 135</b></p> <p>Understanding the Basics of Blockchain 136</p> <p>Mining and consensus 137</p> <p>Smart contracts and DApps 138</p> <p>Blockchain network types 139</p> <p>Discovering How Blockchain Technology Works 140</p> <p>Decentralization 141</p> <p>Security 142</p> <p>Transparency 146</p> <p>Looking at Blockchain’s Role in FinTech 147</p> <p><b>Chapter 8: Acclimating to the App Mentality 151</b></p> <p>Introducing Types of FinTech Apps 152</p> <p>Surveying the FinTech App Landscape 153</p> <p>Digital banking 153</p> <p>Wealth management 153</p> <p>Payments and peer-to-peer money transfer 154</p> <p>Lending 154</p> <p>Looking at the Nonretail Side of FinTech Apps 155</p> <p>RegTech 155</p> <p>Capital markets trading 156</p> <p>Building a GUI Framework 157</p> <p>Introducing the GUI 158</p> <p>Getting the GUI right 159</p> <p>Establishing the Requirements Needed in the Development of an App 160</p> <p><b>Chapter 9: Breaking Down BI Tools 163</b></p> <p>Taking a Strategic Approach to BI 163</p> <p>Exploring BI Tools 165</p> <p>Online analytical processing 165</p> <p>Querying and reporting 167</p> <p>Data mining 167</p> <p>Data visualization 168</p> <p>Business activity monitoring 169</p> <p>Data warehousing 170</p> <p>Digital dashboards 171</p> <p>Choosing the Right BI Tools for FinTech 172</p> <p>General BI applications 173</p> <p>Niche BI applications 174</p> <p><b>Chapter 10: Reviewing the Role of Open Source 175</b></p> <p>Defining Open Source 176</p> <p>The open source community 176</p> <p>Free versus open source 177</p> <p>Looking at Open Source Development Processes 179</p> <p>Beginning a project 179</p> <p>Discussing and documenting 180</p> <p>Perusing the Pros of Open Source 181</p> <p>Reduced cost 182</p> <p>Flexibility 183</p> <p>Freedom 184</p> <p>Development speed 184</p> <p>Considering the Cons of Open Source 186</p> <p>An untraditional support model 186</p> <p>Time and resources for maintenance 187</p> <p>The possibility of uneven documentation 187</p> <p>Security risks 188</p> <p>Sustainability issues 191</p> <p>Licensing issues 191</p> <p>Other concerns to consider 192</p> <p>Evaluating Open Source Solutions 192</p> <p>Developing your own solution 193</p> <p>Finding help for the right open source solution 194</p> <p>Introducing open innovation 196</p> <p><b>Chapter 11: Grasping Data Management Fundamentals 197</b></p> <p>Looking at FinTech’s Role in Helping Companies Manage Their Data 198</p> <p>Understanding ETL: Extract, Transform, and Load 199</p> <p>Going over the steps 199</p> <p>Reviewing ETL software requirements 200</p> <p>Managing Market Data 201</p> <p>Cleansing and normalizing market data 202</p> <p>Segmenting and storing market data 203</p> <p>Dealing with Databases 204</p> <p>Data warehouses 204</p> <p>Data lakes 205</p> <p>Maintaining Data Lineage 206</p> <p>Breaking Down Big Data 207</p> <p>Differentiating between Structured and Unstructured Data 208</p> <p>Comparing SQL and NoSQL 209</p> <p>SQL databases 209</p> <p>NoSQL Databases 210</p> <p><b>Chapter 12: Adapting for Future Technologies 211</b></p> <p>Harnessing the Power of Artificial Intelligence 211</p> <p>Defining AI 213</p> <p>Breaking down artificial neural networks 214</p> <p>Exploring how AI fits into FinTech 215</p> <p>Leveraging Machine Learning 216</p> <p>Supervised learning 216</p> <p>Reinforcement learning 217</p> <p>Unsupervised learning 217</p> <p>Making the Most of Chat Bots 217</p> <p>Checking Out Alternative Data Sources 218</p> <p>Companies and devices involved in alternative data 219</p> <p>Alternative data in the financial industry 220</p> <p>Sourcing, compliance, and regulation 220</p> <p><b>Part 3: Working With Fintech Companies 223</b></p> <p><b>Chapter 13: Deciding Whether to Build, Buy, or Partner 225</b></p> <p>Transforming Your Company Digitally 226</p> <p>Exploring Reasons to Build or Buy 228</p> <p>Looking at reasons to build 229</p> <p>Checking out reasons to buy 230</p> <p>Finding the balance between new and legacy software 232</p> <p>Finding a FinTech Partner 234</p> <p>Weighing the pros and cons of partnership 235</p> <p>Researching and scouting potential FinTech partners 236</p> <p>Working with partners on evolving solutions 239</p> <p>Describing the Licensing Models 241</p> <p>Subscription 241</p> <p>Perpetual 242</p> <p>Term 243</p> <p>Source code transactions 243</p> <p>An open source approach 244</p> <p><b>Chapter 14: Managing Integration with Legacy Systems 247</b></p> <p>Understanding and Tackling the Challenges of Legacy Infrastructures 248</p> <p>Comparing old and modern systems 248</p> <p>Determining whether a legacy system is too old 249</p> <p>Estimating the cost of doing nothing 250</p> <p>Discovering how FinTech can help 251</p> <p>Planning for success 252</p> <p>Walking through the Technical Steps of Updating a Legacy System 253</p> <p>Noting areas of concern 253</p> <p>Making your plan 253</p> <p>Assembling the team 254</p> <p>Implementing the plan 256</p> <p>Avoiding the pitfalls 257</p> <p>Simplifying Integration with Microservices Architecture 258</p> <p>The benefits of microservices 258</p> <p>Migration strategy options 259</p> <p><b>Chapter 15: Preparing Your Team for a Successful Project 261</b></p> <p>Assembling a Transformation Team 262</p> <p>Recruiting the right team members 263</p> <p>Counting on communication 264</p> <p>Shifting the leadership paradigm 264</p> <p>Assigning roles 265</p> <p>Setting Realistic Expectations and Timelines 268</p> <p>Supporting Change Agents 269</p> <p>Retaining Good Employees during Change 272</p> <p>Why employees leave 272</p> <p>Retention strategies that work 273</p> <p>Career paths and organizational change 274</p> <p>Understanding Data-Driven Decision-Making 275</p> <p>Breaking the Silos 277</p> <p><b>Chapter 16: Investing in FinTech Companies 279</b></p> <p>Understanding the Players 280</p> <p>Challenging financial institutions 281</p> <p>Offering collaborative solutions to financial institutions 281</p> <p>Navigating the Investor Landscape 282</p> <p>Crowdfunding 282</p> <p>Angel investors 284</p> <p>Venture capital 285</p> <p>Corporate venture capital 286</p> <p>Private equity 287</p> <p>Conducting Due Diligence 288</p> <p>Performing primary research 288</p> <p>Doing secondary research 289</p> <p>Analyzing data 290</p> <p>Evaluating a Company’s Growth Strategies 291</p> <p>Studying the competition 291</p> <p>Listening to customers 292</p> <p>Asking about technology 292</p> <p>Inspiring innovation 292</p> <p>Considering a Company’s Culture 293</p> <p><b>Chapter 17: Figuring Out the FinTech Endgame 295</b></p> <p>Bringing the Board Up to Speed on FinTech 296</p> <p>Noting the challenges that financial boards face 297</p> <p>Embracing digital transformation 298</p> <p>Developing digital skills 300</p> <p>Figuring out how to participate 301</p> <p>Looking into the Future of FinTech 303</p> <p>Authentication methods 303</p> <p>Voice technology 304</p> <p>Artificial intelligence 305</p> <p>Identifying Industry-Driven Networks, Accelerators, and Incubators 306</p> <p>The FinTech Innovation Lab 306</p> <p>Startupbootcamp FinTech 306</p> <p>Techstars 307</p> <p>FINTECH Circle 307</p> <p>Level39 308</p> <p>Mulling Over Mergers and Acquisitions 308</p> <p>Consolidation 309</p> <p>Corporate venturing strategies 310</p> <p><b>Part 4: The Part of Tens 313</b></p> <p><b>Chapter 18: Ten Symptoms of Ailing Legacy Technology 315</b></p> <p>A Band-Aid Overload 315</p> <p>A Lack of Backward Compatibility 316</p> <p>Incompatibility with Other Systems 317</p> <p>Disparate Data 318</p> <p>Spreadsheet Risk 319</p> <p>Latency 321</p> <p>Increasing Demand for Support and Maintenance 322</p> <p>Short-Term Gains and Long-Term Pains 323</p> <p>A Shrinking Talent Pool 323</p> <p>Lost Market Opportunities 323</p> <p><b>Chapter 19: Ten Questions for Determining Whether to Build or Buy 327</b></p> <p>Is This Functionality Core to Our Business? 327</p> <p>Is the Application Unique? 328</p> <p>Which Approach is More Cost-Effective? 328</p> <p>Should This Application Be Built? 329</p> <p>What are the Risks of Building versus Buying? 330</p> <p>When Does Open Source Make Sense? 331</p> <p>When Does Building Make Sense? 332</p> <p>How Can We Accelerate a Build? 333</p> <p>When Does Buying Make Sense? 334</p> <p>How Do We Select a Vendor and a Product? 335</p> <p><b>Chapter 20: Ten Considerations When Using Open Source Technology 337</b></p> <p>Your Business Model 338</p> <p>Open Source Community Health 338</p> <p>Tech Support 339</p> <p>Security 340</p> <p>Code Audits 341</p> <p>Reliability 342</p> <p>Hidden Costs 343</p> <p>Updates and Upgrades 345</p> <p>Potential Hardware Impact 346</p> <p>Legal Considerations 347</p> <p>Appendix: Building A Fintech Company From the Ground Up 351</p> <p>Index 361</p>

<p><b>Steven O'Hanlon,</b> president and CEO of Numerix, LLC and was 2016's FinTech Person of the Year.</p> <p><b>Susanne Chishti</b> is the CEO of FINTECH Circle, the leading global FinTech community focused on FinTech investments and corporate innovation strategies and courses.</p>

<ul> <li>Understand the forces at work behind the rise of FinTech</li> <li>Examine the depth and breadth of financial technology</li> <li>Get up to speed on the latest industry developments</li> </ul> <p><b>Your guide to financial services technology</b> <p>The financial services technology industry is booming, and this hands-on guide is packed with information to help you understand what's going on so you can confidently navigate this rapidly changing landscape. Industry experts from Numerix and FINTECH Circle share their insight and guidance to help you take advantage of this lucrative opportunity. Their expertise will help you create or grow a profitable FinTech company. You can benefit from the FinTech boom as a client, investor, or financial services professional in the global financial and technology industry. <p><b>Inside...</b> <ul> <li>Navigating the FinTech world</li> <li>What it takes to build a FinTech company</li> <li>The scoop on regulatory drivers</li> <li>Decision-making techniques to affect a growth plan</li> <li>Tips from the fastest- growing companies</li> </ul>

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