3F: Future Fintech Framework (Book overview)

A Vision to Simplify Understanding, Foster Innovation & Accelerate Growth in Fintech

Fintech, as the word suggests, is the application of Technology to the world of Financial Services, Banking, Investments, Insurance, etc. Over the years, the scope of Fintech has expanded to encompass many aspects like digital, social media, internet, etc., and it has grown in application and size.

Fintech solutions are also increasingly becoming part of our lives, and impacting day-to-day activities like, making and receiving payments for various purposes like bill payments, purchasing, investing, securing, borrowing, donating, etc. On one hand, we have seen emergence of various solutions like Digital Wallets, Robo Advisors, Neo Banks, Payment Apps, etc.; on the other hand, Fintech-driven solutions are getting embedded and powering growth in digital commerce or ecommerce as it is popularly known. These Fintech solutions have not only added convenience in availing these products and services, but also made the experience more rewarding, not to mention the choices and benefits provided.

All this has happened because of various developments in financial technology, ecosystem and regulations. However, this evolution is not without any pitfalls and challenges. There is, therefore, a need to put all these actions & development in perspective and develop better situational awareness.

Another aspect is, that the approach today for innovation, though mature, is very product & process centric. This leads to inflexibility of systems and becomes a limitation, as the digital world of the future is driven by personalisation, Transparency, convergence & engagement.

There is therefore a need to arrange and project this whole ecosystem in a more future-ready framework that incorporates all developments & overcomes existing limitations.

So, enter 3F: Future Fintech Framework – A book that tries to bring in a very simplified understanding of various aspects driving and impacting Fintech and propose an approach / framework for innovation & growth in the digital world of future. The Framework is technology and product agnostic, and can thereby be applied to most product and solution related use cases in Fintech. In fact, 3F can also be useful and extended to other players in internet space like ecommerce firms, online education, travel, health tech etc. as Fintech is getting embedded across segments.

In simple terms, just like applying the 4P’s or the AIDA Model/Framework of marketing helps us to effectively structure and market products, or how the Agile framework helps us with a structure to manage projects, similarly, 3F: Future Fintech Framework consists of components which enable in structuring and creating futuristic solutions in the Digital/Fintech space.

The book has 3 particular sections, covering the following: –

Section 1 – Key Fintech Themes & Trends

The book identifies 63 different themes & trends that that are driving innovation in Fintech. So, be it Onboarding, Multilingual, Digital Footprint / Identity, Chatbots, 5G, Blockchain, Analytics, Aggregation and many more trends, that encompass all that is happening in Fintech & digital space, are covered. Besides helping the reader develop an overall picture of the Fintech & Digital ecosystem, the themes are triggers to ideate & innovate. The best part is they are explained in a simple manner, such that even non techies can understand.

Section 2 – Three Frameworks for Innovation & Growth

These frameworks enable us with an approach or structure or frameworks that are needed for Fintech & Digital world of future. These 3 frameworks are as below: –

1. Fintech Digital Life Cycle (FDLC) – FDLC helps in creating engaging user journeys / experience across 7 stages and 39 sub stages. The smoother the journey of user is through these stages, the effective is the engagement and profitable is the relationship. The basic premise is that, all features / use cases will eventually manifest in form of a user journey and FDLC will help you design these engaging journeys. FDLC is also Technology and Product agnostic. For e.g. all Fintech and Digital products or solutions will begin with client acquisition & end with Offboarding.
2. Fintech Logical Architecture (FLARE) –, In the digital age you need a common set of logical blocks under which we can define various functionalities that will enable a true digital solution. FLARE is an architecture with 14 easy to understand functional / logical components, providing clarity for better collaboration and documentation amongst stakeholders.
3. Fintech API Marketplace (FAM) – I foresee evolution of FAM’s, a futuristic and realistic Fintech API marketplace, which will power the fintech & digital ecosystems of the future. They will also drive partnerships and make Go To Market very fast and smooth. The book also provides an example to this effect which helps you visualise what FAM’s will do.

These 3 frameworks help organising ideas into a more engaging user journeys (FDLC), logical blocks for effective documentation & collaboration (FLARE) and realise the same through a futuristic (but realistic) API Marketplace (FAM).

Section 3 – Other Key Aspects in Fintech

The book details 4 key aspects to keep track of in the fintech segment as below: –

1. Fintech players ecosystem – To understand the Fintech landscape, we need to fully understand the various types of players and how new players are evolving. So, be it Regulators, quasi regulatory / Industry bodies, Tech companies, BFSI Players etc. they all have a role to play in support of each other. So, it is not just the player categories, the book captures some generic bundling and unbundling trends, that provide insights on different types of players and how they are likely to evolve.
2. Changing revenue, pricing and charges mix – While we understand the players, it is important to understand various aspects that commercially drive them, and how they are changing. So, be it the move from Capex to Opex, different types of charges and their respective drivers, the book provides insights on all these, including how the mix has historic evolved.
3. Regulations – Be it the licensing of new segment, rules and policies, regulations play a big role in Fintech. We also have seen developments in privacy norms and there are other challenges and limitations like cybersecurity, frauds, customer protection, mis-selling and a host of other aspects. The book discusses these, and also provides some solutions & suggestions. The best part is that irrespective of local regulations in various countries, the base understanding remains the same. So, it is applicable across countries.
4. Emerging roles & career in Fintech – Did we hear of Product Managers, Business Analysts & Project Managers in a bank say, a couple of decades back? But today, almost all banks have many of their employees in such roles. Similarly, the book contains insights on new types of roles that will emerge, and how they will empower the future fintech / digital ecosystem. Eventually, while technology will digitise, accelerate & enrich the experience, humans will still be needed for various roles and to run the fintech / digital businesses.

Finally, the digital world encompasses a shift from Products to Customers and from Processes to User Journeys and that is what 3F: Future Fintech Framework captures and enables.

The book aims to bring some quality insights & clarity in a concise way. Even students (Especially graduates and above, MBA etc.) and young professionals, aspiring for a profession in Fintech & Digital world, will find the book very useful.

The above is based on summarised insights from the book 3F: Future Fintech Framework by Kartik Swaminathan. The book is available on Notionpress, Amazon, Kindle & other options Globally in both digital and printed versions.