What's coming? What's the new tech? Well, the new tech isn't nearly as powerful as smartphones in transformation and implications for FinTech today But it might matter for the future And so if you're looking at new apps, you're looking at new ideas New startups, new businesses, you might want to look and say what is enabled by new technologies? What kind of new technologies? Well, some of them are wearable technologies, like a Fitbit can track your steps If you can track your steps, you may be able to tie it to your insurance and say if you walk 10,000 steps a day we'll give you a cheaper price on your life insurance We'll give you a cheaper price on your health insurance because you're more likely to be healthy and live longer We also might assume that if you exercise every day and do certain things and live a certain lifestyle, you might be a better risk for a loan For credit card, for other things, because people that exercise every day may in data mining, turn out to be people who don't default as much on debt They're more responsible citizens of their community, and more trustworthy in some way And so wearables may matter Apple Watch becomes part of your daily life May replace Fitbit or be an alternative to it, and may do much, much more in affecting your life and enabling new applications, new capabilities Some of these technologies may be things like wireless pre-paid cards or other services In Hong Kong society, where I live today, there's a card called the Octopus card The Octopus card is a wireless contact list payment system that is a stored value card Now that may say boring and whatever We've had stored value cards for a long time And this is not new tech Now so this is like a smartphone It's more than ten years old tech But it has changed society in many ways Because of its very high convenience factor, because you can take your Octopus card, keep it your wallet, keep it in your purse, walk on to the subway not have to take it off at all, just wave it over a scanner It's a wireless, contactless card, stores value You can then go to a vending machine, get yourself a Coke then go to a restaurant, pay your bill with that, then take the bus home And then go pay for your groceries at a grocery store all using your Octopus card When it runs out of money it can be tied to your bank account, so it can automatically replenish Although, you don't have to do that You can stay anonymous or you can be identified, it's your choice And so it's a powerful, contactless, convenient transaction system Not for big transactions, but beautiful for small cash-like transactions to the point where society in Hong Kong has more than 99% penetration of the Octopus card It is the dominant payment system in society and many people don't need to carry cash anymore You just use Octopus for everything If you don't use Octopus, you probably would use a credit card or debit card but Octopus is probably your first choice for a payment system There's other capabilities that also may come to play And these are a little more speculative, but you may tie into global positioning, wanting to know people's location Use it in different ways to consider risks or data mining or profiling of behavior, people's attitudes, people's risk in society Internet of Things may tell you about what people buy, how they do transactions what their interactions are to things like you would do with a Fitbit, but with many devices and many things about behavior Your car may report on how often you bypass the Smart Car how often do you drive erratically, how often do you do things that seem risky and bother the car and then they're reporting back to their service provider and saying, this guys a high risk, you better raise his insurance rate So your car may be an informant on you as it becomes smarter and says we don't like this human taking over the car that should be driving itself You may have VR and AR, virtual reality and augmented reality, or smart contacts being able to provide information our smart devices within your body Being able to keep your health good or monitor everything about your health be able to inject insulin when needed, other things This may keep your medical costs lower, which is a big deal in financial markets for insurance companies and others This may help you to also be a more trusted, reliable employee You're less likely to die, you're less likely to get sick, and so this may in some way improve your life Virtual reality and augmented reality are primarily known as gaming capabilities or technologies, but it might move more into entertainment over time It may move into other areas over time And as it does so, you may find that the way people interact in the two main information about where your eyes go, how you react how you physically react may tell a lot about a person We may be able to do data mining or analytics about your interaction in the VR or augmented reality space, and say because of your speed of interaction, because of the way you drive this virtual car, we'll give you lower priced insurance We think you would be an excellent driver We think you would be an excellent employee, or we think you're a lower-cost risk for a loan because of something about the way you interact in a VR or augmented reality space So there may be more things that we can do in FinTech with advanced technology Thus far, the big win is smartphone inconvenience that's opening up new opportunities for FinTech And it's really hard to talk about FinTech and not recognize the power of the smartphone Thank you [MUSIC]
