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The Effect of Disruption on traditional Financial Services Models 
Susanne Chishti, CEO 
FINTECH Circle 
www.fintechcircle...
Do Banks underestimate the danger from FinTechs?, WSJ 3 Oct 2014 
FINTECH Conference 
Banking Conference 
Which side are y...
FINTECH Reports & Resources
Disruptive Technologies Examples 
•Data & Analytics – collect diverse range of financial data on individuals, corporates a...
Challenges for established Players 
•Technology as double-edged sword 
•Existing IT infrastructure (legacy systems, …) 
•C...
Cooperate with FINTECH Firms 
Emergent FINTECH 
Small, innovative firms with disruptive technologies 
Accelerator Programs...
Peer to Peer (P2P) Lending 
•UK one of the fastest adopters with more than 40 platforms 
•Provide loans and early-stage gr...
But business model is changing …. 
•In the US, 80% of loans originated through two biggest P2P lenders (Prosper and Lendin...
Innovative Partnerships are Key 
Example: Santander & Funding Circle
Contacts 
Susanne Chishti, CEO 
Email: susanne.chishti@fintechcircle.com 
uk.linkedin.com/in/susannechishti/ 
@FINTECHCirc...
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Susanne Chishti, CEO of FINTECH Circle speaks about the Effect of Disruption on traditional Financial Services Models

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Susanne Chishti, CEO of FINTECH Circle speaks about the Effect of Disruption on traditional Financial Services Models

  1. 1. The Effect of Disruption on traditional Financial Services Models Susanne Chishti, CEO FINTECH Circle www.fintechcircle.com Fin-Tech 2014 Conference: Modernising Financial Services 9 October 2014 – Edinburgh
  2. 2. Do Banks underestimate the danger from FinTechs?, WSJ 3 Oct 2014 FINTECH Conference Banking Conference Which side are you on?
  3. 3. FINTECH Reports & Resources
  4. 4. Disruptive Technologies Examples •Data & Analytics – collect diverse range of financial data on individuals, corporates and particular market activity ie credit reference •Platforms – P2P platforms, trading and personal wealth platforms, aggregators •Payments – online/mobile, FX transfers Mobile NFC tokenized payments at point of sale Mobile phone and POS terminal manufacturers have a compelling reason to integrate NFC into their devices now.
  5. 5. Challenges for established Players •Technology as double-edged sword •Existing IT infrastructure (legacy systems, …) •Cost-cutting •Tougher capital regime leads to drop in revenues •Regulation (high compliance costs, changes ..) •Little room left for disruptive technologies « They all want to eat our lunch! » Jamie Dimon, CEO, JP Morgan Chase
  6. 6. Cooperate with FINTECH Firms Emergent FINTECH Small, innovative firms with disruptive technologies Accelerator Programs Venture Capital Funds Traditional FINTECH Large tech firms supporting the financial services sector Existing close partnerships with IT vendors Tech Giants Apple, Amazon, Google, Facebook, PayPal etc Example: Launch Apple Pay in US Will they enter banking?
  7. 7. Peer to Peer (P2P) Lending •UK one of the fastest adopters with more than 40 platforms •Provide loans and early-stage growth & working capital to over 5,000 start-ups and SMEs (2011-2013) •Disruptive Model => Dis-intermediation of Banking Investors Banks Businesses or Consumers P2P Platforms
  8. 8. But business model is changing …. •In the US, 80% of loans originated through two biggest P2P lenders (Prosper and Lending Club) are bought by institutional investors rather than the individual investor who once dominated •While dis-intermediation was original goal, biggest players are teaming up with Wall Street Investors Banks Businesses or Consumers P2P Platforms Securitize loans
  9. 9. Innovative Partnerships are Key Example: Santander & Funding Circle
  10. 10. Contacts Susanne Chishti, CEO Email: susanne.chishti@fintechcircle.com uk.linkedin.com/in/susannechishti/ @FINTECHCircle www.fintechcircle.com

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