What's the Difference Between FinTech and TechFin?

Summary

The video explores the difference between 'tech fin' and 'fin tech,' emphasizing how the former transforms financial services by creating entirely new systems using modern technologies like mobile networks, AI, and blockchain. It contrasts the innovative approach of companies like Ant Financial in China, which revolutionize finance by creating something akin to an 'airplane,' with the 'faster horse' mentality seen in Europe and America. The discussion highlights the shift from traditional, costly finance systems to a new digital era of real-time, online, and free financial services that can include everyone globally.

Takeaways

• 😀 Fintech improves existing financial services by making them faster, cheaper, and more efficient.
• 😀 Tech Fin focuses on creating entirely new ways of exchanging value using the latest technologies.
• 😀 The example of Ant Financial in China represents a revolutionary approach to finance, unlike anything in Europe or America.
• 😀 Fintech is akin to a 'faster horse,' while Tech Fin is more like creating an automobile or airplane.
• 😀 The digital era enables real-time, global financial transactions that were once impossible.
• 😀 Mobile networks allow us to serve billions of people at low cost, making financial services more inclusive.
• 😀 The traditional finance industry, based on buildings and humans, is being replaced by software and servers in the digital era.
• 😀 Artificial intelligence and blockchain are poised to revolutionize the financial world even further.
• 😀 We are moving towards a future where everything in finance will be real-time, online, and free.
• 😀 The shift from expensive, building-and-human-based financial systems to more efficient, software-based systems marks a massive transformation.

Q & A

What is the difference between 'fin tech' and 'tech fin'?

The main difference is that fin tech focuses on improving existing financial services by using technology, making them faster, cheaper, and more efficient. Tech fin, on the other hand, begins with modern technologies and reimagines how value is exchanged, creating entirely new financial systems, akin to the invention of automobiles or airplanes.

Can you give an example of tech fin in action?

A prime example of tech fin is Ant Financial in China. It has created a completely new financial ecosystem that doesn't rely on the traditional financial systems we see in Europe or America.

How does the speaker describe traditional financial systems?

The speaker compares traditional financial systems to 'faster horses,' meaning they are improvements on existing models but don't represent fundamental innovation. They are built for the industrial era and rely on costly infrastructure, such as buildings and human labor.

What role do mobile networks play in the evolution of financial services?

Mobile networks enable financial services to be delivered globally, cheaply, and easily, allowing for real-time transactions and the inclusion of everyone, regardless of location, in the financial ecosystem.

Why were financial services historically costly and inefficient?

Historically, financial services were costly and inefficient because they were based on physical infrastructure, such as buildings and human labor. This limited accessibility and made services expensive to deliver.

What technologies are expected to further revolutionize financial services?

Artificial intelligence (AI) and distributed ledger technologies (blockchain) are expected to play a key role in revolutionizing financial services, making them real-time, online, and potentially free.

How does the speaker view the future of financial services?

The speaker is optimistic about the future, believing that we are on the brink of a major transformation in financial services. With new technologies, everything will be real-time, online, and free, creating a more inclusive and efficient system.

What is the significance of China's approach to financial services?

China's approach to financial services, exemplified by Ant Financial, is seen as groundbreaking. Unlike in the West, where financial services are being improved incrementally, China is creating entirely new systems that challenge traditional models.

What does the speaker mean by 'faster horses' and 'airplanes' in the context of financial services?

The 'faster horses' metaphor refers to the incremental improvements in financial services, like those in Europe and America, which are based on existing systems. The 'airplanes' metaphor refers to the radical innovations seen in China, where entirely new financial systems are being created from scratch.

How does the digital era differ from the industrial era in terms of financial services?

In the digital era, financial services are built on software, servers, and real-time capabilities, rather than on physical infrastructure. This allows for global, cheap, and efficient services, which was not possible in the industrial era due to the high cost of serving people.