FinTech

New York Fed Creates FinTech Advisory Board

Share this post:

Financial Technologies, or fintech, are having so much impact on the global consumer that financial institutions and government agencies, alike, are working aggressively to get on board.

Untethered and even empowered by such services as, Square, PayPal, Curb and Venmo, to name a few, increasing numbers of consumers have made fintech a part of their daily lives. According to its EY Fintech Adoption Index 2017, EY surveyed more than 22,000 people around the world and found that, “the average percentage of digitally active consumers using fintech services reached 33% across the 20 markets,” in that year; double the number from only two years earlier.

From traditional banking services and credit cards, to microfinancing and cryptocurrencies, fintech has become an institutional disruptor, akin to the cloud, blockchain and artificial intelligence. And as consumer confidence and adoption continue to rise, so too is the interest of financial institutions and agencies.

Today, development teams at the largest banks around the world are using fintech in the backbone of their operations, from reinventing credit allocation, to deploying blockchain and tokens in payment systems, and using machine learning for evaluating regulation. And, increasingly, a cohort of newcomers is intent on disrupting traditional financial service providers, including for mobile payments, money transfers, loans, fundraising and asset management.

Financial institutions, large and small, as well as the central banks and government agencies that regulate those financial institutions, are all looking to deepen their understanding of fintech.

This led the Federal Reserve Bank of New York to create its first ever Fintech Advisory Group, of which I am a member. The primary purpose of the Group is to provide the NY Fed’s senior leaders an understanding of fintech’s potential, how it is currently being used, as well as how it could be used in the future.

To do it, the Group is tasked with aiding the NY Fed in the development of a more complete picture of existing and emerging technologies, the application and market impact of these technologies, and the resulting impact on the financial system. The group met for the first time this week.

IBM has always believed in the value of leading with innovation. And having been a staunch partner and supporter of so many financial institutions over the years, we are eager to help the NY Fed, an institution serving our home state, accelerate its understanding and adoption of the latest in fintech.

Chief Analytics Officer and Chief Economist, IBM

More FinTech stories

Rethinking the Mayflower: How I Came to Build an Autonomous Ship to Cross the Atlantic

To cross the Atlantic with an unmanned, autonomous ship will push technology to its limits. Like the Mayflower’s 101 passengers in 1620, we’ll also need a lot of help and some good luck. I grew up in Boston, Massachusetts. I spent a lot of time messing around in the ocean, swimming and diving. Unlike my […]

Continue reading

IBM Watson: Reflections and Projections

(Part 1 in a Series) AI has gone through many cycles since we first coined the term “machine learning” in 1959. Our latest resurgence began in 2011 when we put Watson on national television to play Jeopardy! against humans. This became a cornerstone event, demonstrating that we had something unique. And we saw early success, […]

Continue reading

Building Data Science Strength from Within

Filling gaps in portfolios, improving upon products and making them not just whole, but advanced, is part of most organizations’ business regimen. It’s the kind of work, the kind of commitment to constant reflection and improvement that separates the successful from the not-so-successful. This philosophy transcends to people, as well. If a gap exists in […]

Continue reading