From FinTech to TechFin: Navigating the Evolving Financial Technology Landscape

Over the past three years working in the FinTech space, I’ve witnessed both growth and turbulence. Despite navigating complex and often shifting regulatory frameworks, the industry continues to evolve at a remarkable pace.

Back in July 2017, while attending a conference in Malaysia, I first came across the concept of TechFin. The term, originally introduced by Jack Ma, sparked my interest and led me to explore the idea further. Yet, despite its growing relevance, there’s been little formal market analysis specifically focused on the TechFin model.

FinTech vs. TechFin: What’s the Difference?

While the distinction between FinTech and TechFin might seem subtle to many, the intent and approach behind each are fundamentally different.

Both FinTech and TechFin represent the increasing convergence between finance and emerging technologies. Their success often depends on large financial institutions taking a two-step approach:

1. Data Collection – Accumulating actionable customer and client data.

2. Data Utilisation – Translating insights from that data into enhanced customer engagement.

Janos Barberis, a well-known FinTech and RegTech thought leader and founder of the Supercharger FinTech Accelerator in Hong Kong, once stated:

“We are entering the era of data analytics and artificial intelligence. Data, once a byproduct of human activity, is now a key economic driver. It's often called the 'new oil' because it pushes companies to extract, refine, and monetize it. We're only scratching the surface—less than 1% of global data is analyzed, and over 80% remains unprotected.”

(Source: The Asian Banker)

The Evolution of FinTech

According to The Asian Banker, the development of FinTech can be categorized into four distinct phases:

• FinTech 1.0 – Focused on infrastructure

• FinTech 2.0 – Centered on banks

• FinTech 3.0 – Driven by start-ups

• FinTech 4.0 – Defined by TechFin

Key Differentiators

While both FinTech and TechFin leverage technology in financial services, their core purposes diverge:

• FinTech aims to disrupt legacy financial systems by introducing transformative technologies. A prime example is the deployment of blockchain to upend traditional transaction models.

• TechFin, on the other hand, seeks to enhance existing systems. It’s more about incremental, user-focused improvements rather than outright disruption. The emphasis is often on better design, usability, and integration.

What Defines True Innovation?

After more than a decade in strategic roles and product development, one thing is clear: real innovation is difficult. While refining user experience and interface design is attainable with the right team, true innovation only occurs when a product or service achieves widespread adoption.

Take blockchain—it holds significant potential, but until it becomes mainstream and universally accepted, it remains on the edge of innovation rather than at its core.

TechFin’s progress may be slower, but it could have a more lasting impact. Why? Because users today prioritize design, convenience, and functionality above all else when choosing financial services.

Banks and the Innovation Imperative

Having worked closely with banks, I’ve seen firsthand their eagerness to modernise. Most understand the need to evolve and are investing in innovation labs around the world. However, success won’t be measured by how many labs they launch—but by how quickly and effectively they can develop and integrate new products into their core operations.

With Gen Y and Gen Z as key consumers, expectations are higher than ever. This younger demographic is less forgiving and demands seamless, intuitive digital experiences. Getting the basics right—design, usability, and functionality—is no longer optional; it's essential.

The Road Ahead

The intersection of finance and technology is a space of constant evolution. Whether it's FinTech disrupting or TechFin enhancing, the end goal remains the same: to deliver better financial experiences. With the right balance of innovation, usability, and speed, the industry is poised for an exciting future.

Reference:
The Asian Banker – From FinTech to TechFin: Data is the New Oil