Jun Xu - Future And Fintech, The: Abcdi And Beyond

This is an excellent book, covering the most important technology areas of Fintech: AI, Blockchain, Cloud, IoT, etc. The authors have succeeded in producing self-contained chapters with rich contents, which are accessible to anyone with a good background in engineering.

Yong Xia
Managing Director, Global Head of HSBC Lab

To stay relevant in this digital era, it is critical for financial service providers to transform digitally using emerging technologies. The Future is Fintech is a must-read guidebook that explains the key concepts, practical applications, and comprehensive case studies to enable any leader to play an effective role in leveraging ABCDI technologies and beyond.

Zhu Kuang Lee
Managing Director, Chief Digital, Data & Innovation Officer,
Securities Services, HSBC

THE FUTURE AND

FINTECH

ABCDI and Beyond

THE FUTURE AND

FINTECH

ABCDI and Beyond

Editor

Jun Xu

Published by

World Scientific Publishing Co. Pte. Ltd.

5 Toh Tuck Link, Singapore 596224

USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601

UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE

Library of Congress Cataloging-in-Publication Data

Names: Xu, Jun (Research and Development Engineer), editor.

Title: The future and FinTech : ABCDI and beyond / editor Jun Xu.

Description: Singapore ; Hackensack, NJ : World Scientific Publishing Co. Pte. Ltd., [2022] | Includes bibliographical references.

Identifiers: LCCN 2022008148 | ISBN 9789811250897 (hardcover) | ISBN 9789811250903 (ebook for institutions) | ISBN 9789811250910 (ebook for individuals)

Subjects: LCSH: Financial services industry--Technological innovations. | Finance--Data processing. | Banks and banking--Technological innovations.

Classification: LCC HG173 .F88 2022 | DDC 332.028541--dc23/eng/20220318

LC record available at https://lccn.loc.gov/2022008148

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

Copyright 2022 by World Scientific Publishing Co. Pte. Ltd.

All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the publisher.

For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher.

For any available supplementary material, please visit
https://www.worldscientific.com/worldscibooks/10.1142/12686#t=suppl

Desk Editors: Balamurugan Rajendran/Amanda Yun

Typeset by Stallion Press

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Printed in Singapore

The Future and FinTech examines the fundamental financial technologies and its growing impact on the Banking, Financial Services, and Insurance (BFSI) sectors. With global investments amounting to more than $100 billion in 2020, the proliferation of FinTech has underpinned the direction that payments, loans, wealth management, insurance, and digital assets are heading.

This book presents FinTech from an industrial perspective in the context of architecture and its basic building blocks, e.g., Artificial Intelligence (AI), Blockchain, Cloud, Big Data, Internet of Things (IoT) thereafter, we abbreviate the five technologies as ABCDI and its connections to real-life applications at work. It provides a detailed guidance on how FinTech digitalizes business operations, improves productivity and efficiency, and optimizes resource management with the help of some new concepts, such as AIOps, MLOps, and DevSecOps. Readers will also discover how FinTech innovations connect BFSI to the rest of the world with the growing interests in Open Banking, Banking-as-a-Service (BaaS) and FinTech-as-a-Service (FaaS).

To help readers understand how FinTech has unlocked numerous opportunities for tapping into the massive substantial group of customers, this book illustrates the massive changes already underway and provides insights into changes yet to come, through practical examples and applications with illustrative figures and summary tables, making this book a handy quick reference for all things FinTech.

This book is organized as follows. , The Technical Foundations of FinTech: ABCDI and More, further explains the fundamental technologies behind FinTech with their functionalities and interactions between each other, with the aim of enabling non-technical readers to understand FinTech conceptually.

, Knowledge Graphs and its Applications in Finance, illustrates the importance of knowledge graphs for financial services. A practical approach to build and maintain a business knowledge graph is presented and illustrated with a simplified sample use case.

, Technologies and Strategies to Leverage Cloud Infrastructure for Data Integration, provides an overview of Cloud data technologies for data integration and their strategic implications. In addition to common Cloud services for data ingestion, storage, processing and lifecycle management, major Cloud platforms, leading data tech companies, and open-source communities also provide various tools for delivering data security and sensitive data management. A case study on how a leading financial services company leverages Cloud data infrastructure to digitalize banking is also presented.

further explains the techniques, applications, challenges, and future directions of biometrics.

, MLOps in the Financial Industry: Philosophy, Practices, and Tools, applies DevOps into the AI/ML lifecycle for MLOps, which can dramatically reduce the ML adoption cost and improve AI responsibility in the BFSI. Case studies are provided on how to implement DevOps, DevSecvOps, and MLops in large banks.

, The Open Banking Ecosystem and its Evolution, demonstrates the power of open banking with BaaS and FaaS for the platformization ecosystem. Their implementation strategies and concerns in different countries are discussed. In particular, we highlight their developments in China, and believe that future banking will be more open and smarter with the integration of FinTech.

During the preparation of this book, the editor received support from numerous colleagues and alumni of HSBC. Here I only mention a few Dr. Yong Xia, Alex Tsui, Dr. Xinming Jin, Dr. Amy Shi-Nash, Eros Ye, Dr. Kwok Ching Tsui, Cherrie Xu, Wenne Chen, Sam Fan, Jiang Zhao, Adam Chen, Edward Liu, Andrew Liu, Jay Gu, Robin Wu, Shair Zheng, Chloe Qian, Sandeep Sharma, Dave Vijay, Astor Law, Joe Li, Daniel Lewis, Chioma Anyanwu-Akpom, Jennifer Doherty, Wei He, Marco Yao, Alex Han, et al. Some friends have also helped to review some chapters Dr. Martin Qiao, Mark Liu, Victor Lu, Kenneth Liu, Running He. My current colleagues also offer considerable helps, and there are too many to list here. In particular, my wife, Grace Wu, read through the whole book and provided many useful suggestions. As a senior executive in a global leading high-tech firm, her understanding on FinTech has grown exponentially after being the first reader of this book, which marks this book as an ideal guide for both technical leaders and management on the non-tech track. Deep appreciation also goes out to the publishers, Dr. Yan Hong Ng, Amanda Yun, and Karimah Samsudin for their professional support.