Think about how Alibaba created a whole new world for money markets with Yu'e Bao So in the mind of the general public and in the mind of the industry, FinTech is very closely associated with China And it's very clear that in China, those technology platforms has enabled the country to leap-frog over a lack of financial development from the incumbents Now, it's all about information, it's all about data And the business model of a lot of these platforms is about making money out of data, in other words data monetization At the same time, it's all about analyzing the data, as I mentioned we have a lot of information but it's an information overload, it's not vetted it's not analyzed, how are we going to deal with that data There's also a lot of discussion about the technology platform model in particular when you think of a firm like Apple relies a lot on developing an entire ecosystem around it Are we talking about the Apple-ization of finance, or are we looking at a different model to run the industry? And most importantly, when I think of my students, I think, what about the jobs? What are the jobs going to be tomorrow in an industry that is going through profound changes? So what's the downside? The first thing, if you think that like I do, that information and data is the key Who owns it? Is it the person who produces it? Is it the person who analyzes it? Is it the person who uses it? So, who owns the data? Let's look at an example, for example, if you look at stock exchanges, right stock exchanges get a lot of information from all the transaction that goes through the platform Does this information belong to them? Does it belong to the users? And what can they do with it? Can they sell it? Stock exchanges are now full-profit organizations? And they work for their shareholders, as opposed to working for their members So, is this data belonging to them? Is it belong to the government and the regulators? Does it belong to the users? What can they do with it? Can they charge you for access to your own data? That data, can it be stolen? This is not physical, this is something digital So if somebody accesses this data, is it stolen or does it still belong to you? And if it happens, what can you do about it? Who can you complain to? Which brings about the problem of regulation, which has been a very tough problem, because regulators operate within national boundaries and in the real world, but technology has no borders or difficult to put borders in place So who is the regulator? And I think these are big challenges that we are facing today Some of the scary stuff to conclude because I have to present the view of what I think is the downside as we are now moving into an area of artificial intelligence deep learning, machine learning So again, who owns the data? What can you do with it? And when you think that, eventually you will have artificial intelligence problems artificial intelligence designing, artificial intelligence programs How do we control this? And also, we have a very positive very optimistic outlook on technology from the younger generation We don't look so much at the failures And hype has come from successes, which are very widely publicized as Dr. Eberhard Schoneburg said recently We don't hear so much about the failures Maybe we should be looking at them more carefully >> Well, thank you for sharing these thoughts and ideas One of the things that I think about when I think of dinosaurs is Jurassic Park They're scary and they're big, and they eat up humans So maybe, the FinTech firms as dinosaurs are going to eat up all the little start-ups and the big banks are going to dominate, but the dinosaurs went extinct They all died So are the banks going to die instead, and FinTech firms are going to thrive, and dinosaurs will be gone? >> No, no, I don't believe that banks will die I think they will adapt I mean, banks have for centuries Some have survived, some have stayed for couple of centuries, and they've had to deal with technological inventions before so I believe that banks can adapt It's, of course, a matter of the management of the bank and the culture of the bank how- >> But some have died >> Yes, of course, but then, firms have died before >> Okay. >> And it's nothing I mean, I can talk from example of a particular bank that merged with another bank, it was a clash of culture Within six months, the bank was dead >> Yeah. >> This has nothing to do with technology it was simply a bad bet on a merger without taking into consideration to culture So firms die for all kinds of reason, generally to do with management It can be a wrong bet on the wrong technology, but it's not specific to banks >> Okay So tech can matter, tech can precipitate problems, tech can be badly managed But it's not the only reason that banks may fail They may fail from a variety of reasons and sometimes, they get bought out Sometimes they merge, sometimes there's financial crisis, sometimes they don't get bailed out by the government, and some banks can win or lose overtime >> That's right >> All right, well thank you very much I appreciate this discussion on FinTech for Dinosaurs
