What is FinTech?

FinTech is an abbreviation of the phrase ‘financial technology’. It was first used in the 1980s by Peter Knight in The Sunday Times and has since become a common term when referring to technology which supports or enables financial services.

Examples of FinTech include: new payment methods such as PayPal and Bitcoin; the blockchain, which may be deployed to improve back and middle office processing for financial services businesses; and technology which gathers and/or analyses large data sets to improve business intelligence.

 

The Global FinTech sector has grown from investment of under US$930 million to $2.97 billion in 2013.

 

 

 

Financial activity predicted to rise from US$3 billion in 2013 to $6 billion by 2018.

 

A strategic vision for FinTech

In July 2015, the States of Guernsey, in association with PwC, published “A Strategic Vision for FinTech”. This collaborative piece of work highlighted that Guernsey is already doing much in this area and is a place where established and new businesses can flourish.

Fifty years as an IFC

Politically and financially stable

A government that supports business of all kinds

A simple, stable and competitive tax system

Highly skilled workforce

Highest standards of regulation

Case studies

Some of the firms that have chosen to take advantage of the environment Guernsey offers include:

In February 2017, Northern Trust, in collaboration with IBM, launched the first commercial deployment of blockchain technology for the private equity market. 

Together they have built a distributed ledger solution, which is being used for the management and administration of a private equity fund by Unigestion - a Swiss-based asset manager with $20 billion assets under management. 

The group opted for a Guernsey-based fund because the use of blockchain has already been approved by the Guernsey authorities. 

As a jurisdiction we continually monitor new technologies, support businesses in developing ground-breaking new ideas and provide a supportive environment where products can not only flourish but be first-to-market.Deputy Gavin St Pier, Guernsey's Chief Minister 

Visit Northern Trust's website
 

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