Emergence of FinTech and the LASIC Principles

Abstract

Financial technology (FinTech) has been receiving much attention lately. And, although the development of FinTech is still in early stages, many believe that it will define and shape the future of the financial services industry, and at the same time, increase participation by those who have until recently been under- or unserved. Given the intense competition, however, success in this space will not be easy, and various factors, both internal and external, will play key roles in identifying those that will be successful. In this article, we identify some of these factors, which we term the LASIC (low margin, asset light, scalable, innovative and compliance easy) principles. FinTech companies could benefit from applying some of the ideas presented in this article to their businesses.