Executive Summary 2
Block Chain and Cryptocurrency: Financial markets racing to adopt tech 2
Cashless economy spreading as culture shifts and technology solves problems 2
Financial services developing to counter cyber-crime threats 2
Insurance market set for rapid change after embracing technology 2
Robo-Advisors: Complex algorithms and AI are proving popular in wealth management 3
Block Chain and Cryptocurrency: Financial markets racing to adopt the tech 8
Block Chain is the potential foundation of a more secure internet ledger system 8
Block Chain operates like a network file that everyone can access 9
Cryptocurrency mining is an entirely new industry that runs the Block Chain 10
Currency value allows it to escape all bank charges currently 10
Cryptocurrencies Bitcoin and Ethereum are very different enterprises 11
Banks have to solve a particular problem with Block Chain tech 12
R3 is one of the start-ups hoping to woo the big banks 12
IBM is building a Block Chain network for European banks 12
Cashless economy spreading as culture shifts and technology solves problems 14
World leader Sweden developing society around an absence of cash 14
Success of cashless systems in developing countries represents opportunity for financial services 15
Potential gains for banks from cashless transactions are substantial but questions remain on appetite from businesses 17
Transition to cashless society comes with problems and resistance from end-users 18
Financial services developing to counter cyber-crime threats 20
Companies must change to meet evolving cybersecurity environment 20
Regulatory authorities responding to criminality, forcing companies to act 21
Major banks are improving fraud detection, reducing risk to all concerned 22
Regulatory technology is changing how financial services combat criminal threats 24
Insurance market set for rapid change after embracing technology 26
InsurTech is changing the insurance market, allowing disruptors to impart much needed dynamism 26
Big data is changing how insurers do business, allowing better fraud detection and tailoring policies to individual consumers 27
Insurance protecting against cyber-attacks is a major growth area but uncertainty remains 28
Micro insurance opens up markets to new products created specifically for developing economies 30
Robo-Advisors: Complex algorithms and AI are proving popular in wealth management 32
Robo-advisor products are those which include some element of automation 32
Incumbents and startup players prefer different types of products 33
D2C advisory platforms are the main route that start-ups are using, but incumbents still dominate 33
Business-to-business advisory services act as a supplemental product 33
Hybrid advisory services are mainly run by the incumbent big players 34
Robo advisor products are currently flourishing in developed markets with the US leading the way 34
Much of the product offering is generally poor and lacking in depth 34
Restricted advice may mean that ultimately the service is worse 35
Robo advising may actually be a misnomer, customers are expecting an AI product 35
Robo advising and digital wealth can’t be ignored because some people prefer it 36
Points of interest 37
Appendix 38
Sources 38
Further Reading 38
Ask the analyst 39
About MarketLine 39
Disclaimer 39