The Fintechs

Fintechs
Fintechs
Fintechs
Fintechshttps://pyramidsolutions.com/2016/01/fintechs-are-changing-the-face-of-banking/

• What is Fintech
• What Fintechs do?
• Fintechs in the World
• Fintechs in Turkey
• Are Fintechs Threats to Banks?
• Some Statistics About Fintechs
• The Future of Fintechs

What is
?
http://www.livebitcoinnews.com/q1-venture-capital-investments-in-fintech-sets-records/

What is Fintech?
Fin·Tech *noun* : an economic
industry composed of
companies that use technology
to make financial systems more
efficient.
One thing it is certainly not is a buzzword!

Fintech
• Finansal Teknoloji (Turkish)
• Financial Technology (English)
• Finanztechnologie (German)
• финансовые технологии (Russian)
• Technologie Financière (French)
• ‫التكنولوجيا‬‫المالية‬ (alttiknulujia almalia) (Arabic)
• taloudellinen tekniikka (Finnish)
• οικονομική τεχνολογία(oikonomikí technología) (Greek)

Definition of FinTech
• “Fintech is the R&D function of financial services in
the digital age….less to do with technology more to
do with business model reinvention and customer
centric design. Fintech can be categorised as:
• Traditional fintech as ‘facilitators’ with larger
incumbent technology firms supporting the
financial services sector; and
• Emergent fintech as ‘disruptors’ with small
innovative firms disintermediating incumbent
financial services with new technology.”
http://thefinanser.com/2015/01/ghgh.html/

What is Fintech?
FinTech encompasses a broad spectrum of
companies, technologies and market participants.
Startups, financial services companies, market
infrastructure and technology companies are all
changing the way financial services is done. In turn,
they are being influenced by regulators, customers,
investors and accelerators who are introducing new
ideas and structure. FinTech describes the new
technologies, services and companies which are
changing financial services.
http://pwc.blogs.com/fintech/2016/04/

Fintech's Distinctive Aspects
The word “FinTech”, is an acronym for “financial
technologies”.
Generally it stands for a whole new industry that was
built on the basis of the old fashion financial market.
Fintech companies provide financial services using
different kinds of high-tech solutions.
Quite often you can get the same services in any bank.
For example lending, payments or money transfers. But
what fintech all about is to provide all this stuff in a
much more convenient way.
Fintech solutions make financial
services cheaper, faster, and what is very
important, clearer for a user.
https://www.linkedin.com/pulse/fintech-timeline-oleh-zaiats

Factors that Drive the Emergence
and Growth of FinTech
• New ICT (information and communications
technology) technologies (cloud computing,
IoT)
• Growth of mobile devices
• Demand for alternative finance after the
2008 global financial crises (since trust in
banks was lost)
• Increased government support for Fintechs
since they boost economic growth

Key Technologies Shaping Fintech
https://letstalkpayments.com/fintech-outlook-for-2017-report-discussing-trends-opportunities-and-challenges/

http://www.businessinsider.com/fintech-ecosystem-financial-
technology-research-plus-business-opportunities-2016-2

What FinTechs ?
pwc.com/fintechreport
• FinTechs going directly to retail end-user and
bypassing banks altogether.
• They offer attractive solutions to client sectors
often neglected by traditional banks.
• Solutions for customers with no or poor credit
scores who are unable to get loans.
• Peer-to-peer (P2P) marketplaces for customers
unable to secure loans from the traditional
sources.
• Personal finance management tools.

Sample Fintech Applications
Kensho
It’s Siri for Wall Street. The AI software uses big
data to analyze new events, answer traders’
questions, and spit out reports predicting where
markets are headed. Kensho has the potential
to replace the Street’s trove of market
strategists, and its ability to crunch data and
offer advice should make investment bankers
nervous too.

Sample Fintech Companies
https://www.solarisbank.de
As a tech company with a banking license, we do more than enable banking services. We offer
various value-added services to help your company grow. If your business requires AML/KYC-
compliant identification, we offer several identification options via one solaris API.

Sample Fintech Companies
Atom Bank (mobile only bank)

Applications of Machine Learning in
FinTech
1. Predictive Analysis for Credit Scores and Bad
Loans Lending Club, Kabbage, LendUp
2. Accurate Decision-Making Affirm, ZestFinance,
BillGuard
3. Content/Information Extraction Dataminr,
AlphaSense
4. Fraud Detection and Identity Management
Feedzai, Bionym, EyeVerify, BioCatch
5. Building Trading Algorithm KFL Capital, Binatix

PSD2
The Payment Services Directive, Part 2 (PSD2) came into
force across the European Union (EU) in January 2016, giving
member states two years to implement it. It is likely to
revolutionise how financial services are delivered across
Europe, initiating a wave of innovation from fintech
startups. At the same time, it threatens to disrupt existing
business lines for incumbent banks.
Banks have to adapt. Currently bank accounts are siloed
and, with a few exceptions, banks do not grant access to the
information stored in customer accounts. Under the new
regulation, they are asked to “open up”, but the burden of
developing technical solutions is on the banks themselves,
creating the APIs that everyone is talking about.

EBA RTS
The European Banking Authority (EBA) has
published its long-anticipated draft Regulatory
Technical Standards (RTS) on ‘strong customer
authentication and secure communication’ on
12 August (2016). The RTS are considered key
to achieve the PSD2 objectives of enhancing
consumer protection, promoting innovation
through competition and improving the
security of payment services across the
European Union.
https://www.innopay.com/blog/eba-rts-three-key-business-implications-for-bank-decision-makers/

PSD2 Timeline
PSD2: The Payment Services Directive Part2
EBA: The European Banking Authority
RTS: Regulatory Technical Standards

The Engine for FinTech Innovation
Uses APIs as the Fuel
It won’t be wrong to say that APIs are
powering a lot of new FinTech innovation.
Apart from the huge drivers for FinTech innovation that
we have seen – Mobility, Cloud, commerce innovations,
analytics and big data, the use of APIs is another driver
that is helping FinTech a lot.
So what are the enablers for API Economy? Consumer
Apps in every segment of FinTech, Opening up of data by
Govt. & Regulatory bodies to enable market transparency,
opening up of data by companies large and small, faster
networks, better cloud services, ease of generating
increased user base and asset light business, and more.
https://letstalkpayments.com/the-engine-for-fintech-innovation-uses-apis-as-the-fuel-75-profiles/

The Open Banking Standard
• The Open Banking Working Group (OBWG) was set
up in September 2015 at the request of HM Treasury
to explore how data could be used to help people
transact, save, borrow, lend and invest their money.
• The Open Banking Working Group (OBWG) included
industry experts from banking, open data,
consumer and business communities to ensure a
diverse range of expert views were represented, and
actively sought input from any interested party.
• The OBWG has set out an Open Banking
Standard to guide how open banking data should be
created, shared and used by its owners and those
who access it.
http://theodi.org/open-banking-standard

Announcing the Open Banking
Development Group
The ODI (Open Data Institute) has launched an Open
Banking Development Group (OBDG) to drive open
innovation around an open banking standard, on a UK
and international basis. The launch of the OBDG has been
welcomed by the Financial Data and Technology
Association (FDATA) and the Scale-Up Institute. The nine
institutions named by the Competitions and Markets
Authority (CMA) welcomed the ongoing interest from,
and engagement with, all stakeholders, including the ODI
as a representative of the fintech and broader
communities.
AIB Group, Bank of Ireland, Barclays, Danske, HSBC Group, Lloyds Banking Group, Nationwide, RBS Group
and Santander are currently working together to create the Implementation Entity that will deliver an open
API standard, open data and data sharing.
http://theodi.org/news/announcing-the-open-banking-development-group

The “Do-ers” Who are Making Their APIs
Available
https://letstalkpayments.com/how-to-build-a-successful-fintech-startup-in-2016-part-2/

FinTech Adoption
http://www.ey.com/gl/en/industries/financial-services/ey-fintech-adoption-index October 2015.

The Top 10 companies in the Fintech 100
1. ZhongAn (China)
2. Oscar (USA)
3. Wealthfront (USA)
4. Qufenqi (China)
5. Funding Circle (UK)
6. Kreditech (Germany)
7. Avant (USA)
8. Atom Bank (UK)
9. Klarna (Sweden)
10. OurCrowd (Israel)
1. Ant Financial (China)
2. Quadian (China)
3. Oscar (USA)
4. Lufax (China)
5. ZhongAn (China)
6. Atom Bank (UK)
7. Kreditech (Germany)
8. Avant (USA)
9. Sofi (USA)
10. JD Finance (China)
https://h2.vc/reports/fintechinnovators/2016
for 2015 for 2016

Top US FinTech 2015
https://letstalkpayments.com/how-to-build-a-successful-fintech-startup-in-2016-part-2/

FinTech in Europe
https://letstalkpayments.com/everything-you-wanted-to-know-about-fintech-in-europe/

Strategic Location of Istanbul
http://bkm.com.tr/wp-content/uploads/2016/02/Banking-and-FinTech.pdf

Finance Technopark
«Turkey’s first thematic Science and Technology
Park (STP), called the Finance Technopark, will
be created in Istanbul with the partnership of
the Borsa Istanbul and Bogazici University.
The STP will conduct research and development
(R&D) activities and create value-added financial
technologies for domestic and international
markets.
By 2023, Turkey aims to become the world’s first
cashless society and country where all
transactions are made with payment systems.»

Fintech - Payments in Turkey
IBTECH

http://bkm.com.tr/wp-content/uploads/2016/03/BKM-Fortune.pdf

http://bkm.com.tr/2016-turkiyede-fintech-yili-olacak-infografik/

How Turkish Banks Embrace Fintech
Akbank Direkt Bankacılık Genel Müdür Yardımcısı Orkun Oğuz:
“Yapay zeka ve sanal gerçeklik dijital bankacılığın yeni
bileşenleri olacak
Akbank olarak bu alanda yatırım yapma konusunda çok istekliyiz.
Akbank olarak gelecek vaat eden ve önümüzdeki dönemde
karşılıklı fayda sağlayabileceğimiz yaklaşık 10 Fintech ile
önümüzdeki yıl birlikte çalışmalar gerçekleştirmek
planlarımız içinde yer alıyor.
Bu Fintech’lere yatırım yapmayı hedefliyoruz. Gelecek yıllarda . . . bu
sayıyı artırabiliriz.
Fintech konusunda gelişimi desteklemek amacıyla tüm uygulama
geliştiricilerin diledikleri zaman ve mekanda girip çalışabilmeleri için API
açan ilk banka olduk.»
http://www.fortuneturkey.com/dijital-musterinin-tercihi-dijital-bankacilik-34828

ING Bank Bireysel Bankacılık Genel Müdür Yardımcısı Barbaros Uygun:
«ING Bank olarak kendimizi bankacılık
lisansına sahip teknoloji şirketi olarak
konumlandırıyoruz. Geleneksel
bankacılık ve iş yapış şekillerinden uzak,
bugün bilinen bankacılığın ötesinde,
yepyeni bir modeli gerçekleştirmek için
çalışıyoruz. «

Yapı Kredi Alternatif Dağıtım Kanalları Genel Müdür Yardımcısı Yakup Doğan:
“Dijital bankacılığın geleceğinde IoT ve Fintech’ler önemli rol
oynayacak”
Önümüzdeki süreçte de giyilebilir teknolojiler, artırılmış gerçeklik, nesnelerin
interneti gibi kavramlarla birlikte bankacılık diğer tüm sektörler gibi daha fazla
dijitalleşecek.
Finans sektöründe tüm dünyada etkisini göstermeye başlayan finansal teknoloji (Fintech)
şirketleri, Türkiye’de de sektöre yenilikler getirecek.
Fintech girişimlerinin bankalarla işbirliklerinin de artacağını öngörüyoruz. Bununla birlikte şu an
için hayatımızda olmayan pek çok yeni teknoloji üzerine dijital bankacılık hizmetlerinin gelişmeyi
sürdüreceğini söyleyebiliriz.
Biz de finansal teknoloji alanındaki çalışmalarımızla sektöre öncülük etmeye devam edeceğiz.
Ödeme sistemlerinden yatırım danışmanlığına, bütçe planlamadan güvenliğe kadar birçok farklı
alanda binin üzerinde Fintech ve startup inceledik. Londra, Milano, Kopenhag, Viyana ve San
Francisco gibi birçok şehirde bu girişimlerle görüşmeler yapıyoruz ve şirketlerin sunduğu
çözümlerle müşterilerimiz için nasıl katma değer yaratabileceğimizi değerlendiriyoruz. Bunun
yanında; ortağımız UniCredit ile işbirliği içerisinde bankacılığa yeni bir bakış açısı getiren
Blockchain altyapısı üzerine de çalışmalar yürütüyoruz. Yapı Kredi olarak öncü özelliğimizi
koruyarak, bu yeni teknolojileri kısa bir süre içinde müşterilerimizin hizmetine sunmayı
hedefliyoruz.

Türkiye İş Bankası Genel Müdür Yardımcısı Yalçın Sezen:
“Dijital bankacılık, nakitsiz bankacılığa kapı aralıyor”
Önümüzdeki dönemde bankacılık sektörünün dijital
bankacılık alanında Fintech girişimleriyle işbirlikleri daha
artacaktır. Bankalar Fintech girişimleriyle kuracağı ortaklıklar,
yapacağı işbirlikleri sonucunda inovatif çözümlerle müşteri deneyimini
en üst seviyeye çıkarma şansına sahip olacaklar.
İş Bankası olarak Fintech uygulamalarının geliştirilme aşamasında müşterilerimizin yaşam
döngüsü ve dijital ayak izi araştırmaları ile hackathon gibi inovatif düşünce yapısının
geliştirilmesine yönelik çalışmaları süreçlerimize dahil ediyoruz. Bunun yanı sıra teknoloji
iştirakimiz SoftTech, finansal teknolojilerdeki en büyük güçlerimizden biri. SoftTech’in
bünyesinde kurulan “SoftTech Garage” başarılı bir Fintech girişimi
olarak alanında önemli çalışmalar yürütüyor. Bu çalışmaları yürütürken
işbirliklerine giderek kazan-kazan ilkesiyle hareket ediyoruz. SoftTech vasıtasıyla Silikon
Vadisi’ndeki gelişmeleri de odağımızda tutabilme şansına sahip oluyoruz.

Finansbank Bilgi Teknolojileri, Operasyon, Kanallar ve İş Geliştirme Genel Müdür
Yardımcısı Mehmet Kürşad Demirkol:
Teknoloji, alışkanlıklarımızı değiştirdiği gibi iş yapış yöntemlerimizi ve müşteri beklentilerini de
değiştirdi. Dijital dönüşüm bizlere; verimlilik, etkinlik, beklentileri karşılama ve dolayısıyla müşteri
memnuniyeti gibi fırsatları sundu. Yapılan araştırmalarla cep telefonlarımız ile günlük ortalama 6
adımdan fazla uzak kalmadığımız ortaya çıktı. Özellikle para çekme ve yatırma dışındaki
neredeyse her işlemin mobil cihazlardan yapılabilmesi nedeniyle bir anlamda; müşterimizin 6
adım uzağındayız ve her an erişilebilir durumdayız. Türkiye’de ve dünyada dijital dönüşümün en
etkin ve hızlı sonuçlarının mobil uygulamalarda görülmesinin başlıca nedeni de
budur. Finansbank olarak Enpara markası ile şubesiz
bankacılığı Türkiye’de ilk uygulayan banka olarak yüz binlerce
müşterimizle bu alandaki en büyük dijital dönüşüm örneklerinden
birini yaşamış olduk.
Elektronik paranın (e-para) kullanıma alınması, biyometrik
algoritmaların ve cihazların etkinliğinin artması, mobil ödeme ve dijital
pazarlama araçlarının yaygınlaşması, sosyal medyada paylaşılan her
türlü bilginin skorlama dahil çeşitli amaçlarla kullanımı, insanların
birbirleriyle daha da bağlı olma istek ve motivasyonu, nesnelerin
interneti, yeni fırsatları doğuruyor.

Major Banks in Turkey Have Also Understood the
Value of Partnering with the FinTech Companies
Major banks in Turkey have also understood the value of
partnering with the FinTech companies in order to be
more competitive and innovative. For instance, some FinTech
companies have been developing secure online and mobile banking
solutions and branchless banking services for major Turkish banks in order
to improve their mobile services and increase customer satisfaction by
enhancing their accessibility. On the other hand, some Turkish banks
organise FinTech hackathons in order to access to
innovative solutions which will make banking easier. In
these hackathons, banks aim to encourage entrepreneurs, developers,
students and also customers to develop creative and user-friendly internet
banking, digital banking, mobile payments and FinTech solutions with the
mentorship of banking experts. Lastly, some financial services organisations
in Turkey provide FinTech companies with funds, which will help them
improve their business models and achieve growth.

Banking Technologies in Turkey
• The banking sector in Turkey has a high growth
potential.
• Turkey’s population is 77m
• 50% of this population are under the age of 30
• Banking customers are quick adopters of new
technologies
• As the Turkish population is young and welcoming
disruptive technologies faster than other countries,
technology adoption in Turkey has accelerated
• Turkey is also more advanced than many other
western countries in terms of internet speed and
smartphone penetration

• Thanks to the growing young population and
internet usage in Turkey, the Turkish banking sector
is very successful in leveraging new technologies.
• For example, the increasing usage of mobile banking
products in Turkey is a result of banks’ efforts to gain
young customers.
• On the other hand, the unbanked and the
underbanked population in Turkey are still high
• Currently, banks are trying to reach this population,
especially the people living in underdeveloped
regions, through developing innovative banking
technologies.

• The financial services sector in Turkey is among
the most technologically advanced and
innovative sectors.
• Banks are quick to adopt and really keen on
developing new technologies.
• Turkish banks’ products, offerings and the usage
of technology are surpassing their competitors
all around the world.
• There are some examples where they advance
European or US banks in terms of launching
online and mobile banking technologies.

• Turkish banks consider technology and
innovation as competitive differentiators.
• Thanks to their high profit margins, they have
invested heavily in technology and kept their
systems at the leading edge of operational and
digital excellence for decades.
• Turkey is also one of the most innovative and
competitive payment markets in Europe
• For instance, it was the first country in Europe to
issue contactless cards.

• The implementation of payments in instalments and
loyalty schemes (mile and cash bonus collection
practices) triggered the rapid growth of innovative
payment technologies and fierce competition in
Turkey
• Currently, card penetration is very high with 112m
debit cards and 58m credit cards, making Turkey the
Europe’s biggest debit card and credit card market.
• Accordingly, the financial technologies sector is also
well-established and provides more advanced and
innovative solutions compared to their competitors in
Europe.

Banking Regulation in Turkey
Thanks to the BRSA (Banking Regulation and Supervision Agency)
(BDDK), the Turkish banking sector is regulated in terms of
technology and technology related vendors. With the regulation
and legislation changes, instead of having separate service level
agreements with vendors, banks can use some existing
regulations. This protects banks and decreases the risk of
partnering with third parties. Besides, Turkey has a closely
regulated card market with some gaps compared to Europe.
However, there have been some improvements in the regulation.
Recently the Government, the Central Bank of the Republic of
Turkey (CBRT) and the BRSA introduced a new legislation which
regulates the e-money institutions and payment services. It is
Turkey’s version of the European Payment Services Directive
which was missing in the Turkish legal system. This new
legislation is considered as critical for the growth of e-
commerce, payment services and electronic money in Turkey.

The Turkish Government’s Role in the
Financial Services Sector
• The nature of the sector and highly regulated financial
environment create some difficulties for banks to enjoy
the advantages and flexibility that new technologies
provide.
• Sometimes new technologies become invalid for Turkish
banks as it is not possible to try new technologies
without mitigating risks.
• The Turkish financial institutions have a vision to create
a cashless society by 2023, and all the industry players
are very committed to this objective.
• However, the main challenges for Turkey to become a
cashless society are the development of infrastructures,
the large unbanked population and the habit of cash
usage.

Turkish Banks’ Investments in
Technology
• Turkish banks have invested a lot of money into the
payments business to strengthen their value positions
and enhance customer loyalty and profitability
• As a result, Turkey is in a better position in mobile
payment technologies compared to the rest of the
world, and all industry players are trying to make
these technologies work from different angles.
• Turkish banks also invest primarily in mobile
applications as these applications reduce their
expenses. They have started to give importance to the
usage of mobile applications within their organisations
as well.

Turkish Banks’ Attitudes Towards
Innovative Technologies
• The Turkish banking sector mainly prefers
developing technologies in-house as they possess
the relevant resources.
• Most of the banks have technology subsidiaries in
which they invest considerable amount of money.
• However, there is an opinion that Turkish banks
shouldn’t create technology subsidiaries within their
organisations. As they are banks, not technology
companies, they do not need to invest to create
such technology subsidiaries.

Turkish Banks’ Attitudes Towards
• Instead, with the help of outsourcing and special
agreements with the right vendors, Turkish banks can
easily create a technology environment within their
organisations and differentiate themselves.
• When Turkish banks have their technology
subsidiaries, they should hire the best talents in
different domains, such as internet banking, mobile
banking, core banking etc., which is very difficult.
There are many expert companies in Turkey which
serve the banking sector for their technology needs.
Therefore, working with the experts for each sub-
area can be a better solution for banks than creating
their own technology subsidiaries.!!!???

Turkish Banks’ Attitudes towards
• In addition, customer expectations and behaviours are changing
due to new technologies. In order to adapt market conditions,
Turkish banks should be open to new models and collaborations
with other parties. Otherwise, they might lose their customers
or more importantly the customer data.
• Most Turkish banks are aware of these changes and take action
accordingly. They have started working with disruptive FinTech
start-ups as they are more agile and innovative than traditional
technology companies. For example, the trend is using in-house
resources to develop payment solutions but recently it has been
seen that Turkish banks are leveraging third parties to develop
these platforms, software and solutions. Moreover, these third
parties started to sell their products in other markets, which is
very important as they are able to grow their business
significantly.

FinTech
• Turkish banks consider providing mentorship to FinTech
companies in order to share knowledge and provide
them with network opportunities.
• Some FinTech companies have been mentoring and
partially financing young start-ups through contests.
• They also coordinate with the entrepreneurship centres
at universities for encouraging and supporting new start-
ups.
• There is a lack of collaboration between banks and
FinTech companies in developing the FinTech ecosystem
in Turkey.

FinTech
• Some Turkish banks are following the FinTech accelerators in
London and open to get involved in similar initiatives in Turkey.
• Established FinTech companies consider creating partnerships with
and/or providing mentorship to FinTech accelerator programmes
that can be launched in Turkey.
• The FinTech sector offers a great opportunity, especially for young
developers and young entrepreneurs.
• Some Turkish banks plan to collaborate with universities in order
to create an open platform for young code developers and enable
them to build innovative solutions for the banks’ business issues.
• Some Turkish FinTech start-ups have also formed partnerships with
universities to attract the top talents in design and engineering.

SWOT Analysis of the FinTech Sector in Istanbul
Strengths
• Strong and highly regulated banking sector since 2001
• Tech-savvy and highly innovative banking sector
• Banks’ and financial services firms’ interest towards
collaborating with or creating (potential) FinTech
accelerators in Turkey
• Access to a large, young and educated talent pool that have
international study and work experience (e.g. increase in
the reverse brain drain to Turkey)
• Having a large tech-savvy young population
• High mobile phone and smartphone penetration rate and
the increasing usage of mobile banking services
• Central location between Europe and the Middle Easthttp://bkm.com.tr/wp-content/uploads/2016/02/Banking-and-FinTech.pdf

Opportunities
• Creating an infrastructure to increase communication and
collaboration between industries to develop the FinTech sector
• Establishment of Finance Technopark, which is the first thematic
technopark in Turkey focused on finance
• Increasing the number of start-up acceleration and incubation
programmes in Istanbul
• Increasing mentorships provided by banks to FinTech companies
• Attracting talented and multilingual workforce, ranging from fresh
graduates to senior executives
• High unbanked and underbanked population
• Collaborations and partnerships with foreign FinTech organisations
• Central location between Europe and the Middle East with a
potential to become a regional FinTech hub

Weaknesses
• The existing need for developing infrastructure
• Highly regulated banking sector
• Lack of industry experts for Financial Services and
ICT sectors to support and promote these sectors
• Low availability of VCs
• Weak communication and collaboration between
technology companies and banks
• Turkish banks’preference for developing innovative
technologies in-house!

Threats
• Historically high inflationary economy which has
stabilised for a decade
• Turkish banks’ preference for developing innovative
technologies in-house
• Security concerns of individuals and businesses
towards FinTech solutions
• Low ability to attract talented and multilingual
workforce, ranging from fresh graduates to senior
executives

Are Fintechs
Threats
or Friends
to Banks?

http://www.slideshare.net/ishmelev/bank-future

CEO of one of the leading banking groups in Latin America.
«The banks of
the future will
be software
companies»

A senior executive at a global banking organization
«We thought we knew
our customers, but
FinTechs really know
our customers»

Disruption Theory
Disruption theory (initially formalized by Clayton
Christensen of Harvard Business School in the mid-1990s)
posits that an innovation can be, broadly speaking,
disruptive or sustaining. A sustaining innovation is
one that brings efficiency improvements or other short-term
competitive advantages that can ultimately be copied by
competitors. A truly disruptive innovation needs to create a
new market based on new or different values and, typically,
a new business model. This can either be by creating a
product that has a drastically different cost/value trade-off
or by creating a product for consumption that did not exist
previously.
https://blogs.cfainstitute.org/investor/2016/04/28/fintechs-disruptive-potential/

Will Fintech Startups Cause the Demise
of Banks or Come to Their Rescue?
Part of the worry revolves around
the role that fintech startups will
play in the future of the banking
sector: threat or opportunity?

The Rise of UK FinTech
The UK’s FinTech sector has been catalysed a lot by and
developed after the GFC in 2008. One of the reasons
why FinTech has emerged as a big opportunity is the
decreasing consumer trust in banks after the GFC
which led to an increase in the number of consumers
looking for alternatives to banks. Before 2008, banks
were saying “Well, we do it fine, why do we need this
new technology?” when asked. However, as trust in
banks was lost during the GFC, banks are now
rebuilding trust by demonstrating that they are
innovating. In addition, UK banks are interested in
meeting smart FinTech companies to win their
customers back.

How Fintech is Reshaping Banking?
PwC global fintech survey 2016 says:
The survey of over 500 banking
executives reveals that the vast
majority are concerned that part of
their business will be lost to new
fintech entrants who better
understand evolving customer needs.

Highlights from the PwC Global
FinTech Report 2016

What are the Threats Related to the
Rise of FinTech within Your Industry?

What Percentage of Your Business is at Risk of Being
Lost to Standalone FinTech Companies within 5
Years?

The Future
of Fintech and Banking:
Digitally Disrupted or Reimagined?
Accenture: The Future of Fintech and Banking

The Future
How the digital revolution will impact the
established financial services industry is
uncertain, but the following two scenarios
provide a structure for how things may
play out. It is important to recognise that
there is no reason to believe either
scenario will apply to all banks – banks
can still control their own destiny.

The Future
Scenario 1: Digitally Disrupted
Caught in the headlights of regulation and cost reduction,
the bank loses out to new players that provide more
effective financial products and services attuned to the
digital age. The bank continues with a product-based
sales approach rather than improving the customer
experience and as a result lacks the motivation to deal
with legacy applications. Banks in this scenario compete
for a diminishing share of wallet as their brands are
relegated in customers’ eyes to that of commodity
utilities. They continue to believe in the impregnable
nature of their business model and that fast-following
strategies will remain the most successful.

The Future
Scenario 2: Digitally Reimagined
Innovations are embraced at the business model level. The focus is on
making a customer’s life easier not on asset monopolies,
and sources of revenue change over time as customer insight grows and the bank
learns how to use collaboration with adjacent business models to surprise and
delight customers. Banks in this category see themselves as having short term
advantages in infrastructure and customer data, but no long term right to exist
without converting this into services that solve emerging digital consumer
frustrations.
When Accenture started its journey with the FinTech Innovation Lab in NYC in
2010, no bank we spoke with believed Scenario 1 could happen to
them. The overriding belief was that providing sustainable banking
services or sub-services was too complex, risky and regulated for
new players to threaten the existing players. Few banks now feel
that the outcome of digital is so clear.

Three Behaviours Enabling
Banks to be Digital Winners
1. Act Open
Open innovation is at the heart of the digital
revolution, exemplified by the open source
movement that has supported so much of the new
technology development in recent years.
Often it involves opening up the organisation’s own
intellectual property (IP), assets and expertise to
outside innovators to help generate new ideas,
change organisational culture, identify and attract
new skills, and discover new areas for growth.

2. Collaborate
The concepts of collaboration – or “co-innovation”
are becoming more important within the financial
services and technology industries.
Over half of the respondents to the survey believe they
should collaborate “fully” or “extensively” with other
industries, while 80% believe the value in working with
start-ups is bringing new ideas to their business. Yet 56%
claim that organisational culture is the biggest area of
their business that needs to change in order to work
effectively with start-ups.

3. Invest
Venture investing has always been at the heart of the start-up
innovation model. But now more than ever, established
financial services firms are taking this route to try and
generate innovation for their business.
American Express, BBVA, HSBC, Santander and Sberbank
have all developed corporate investment vehicles over the
last four years, each with at least US$100 million to invest.
In February 2015 AXA, the insurance and investment
management firm, launched a €200 million fund to act as “an
accelerating force for start-up companies” in its areas of
business.

The fact remains that innovative start-ups have a
high innovation quotient, but need capital, and
established financial services firms have lots
of capital, but need to increase their ability to
innovate. In such a situation it is inevitable that we are
now seeing so much interest in financing fintech
companies – and we do not see this ending any time soon.
What has yet to be proved is how the innovation flows back
to those that are funding it.

Accenture believes that banks have
recognised the threat posed by digital and
that they are avidly exploring the
opportunities. They have recognised that,
as John F. Kennedy once said, “Those who
make peaceful revolution impossible will
make violent revolution inevitable.”

Fintech Companies’ Classification Based on
Their ‘position’ in Banking
http://banknxt.com/53695/fear-fintech-startups/

Sioux
Fintech companies that serve customers
who are not interesting to banks.
These are positioned in markets that traditional banks
ignore. Examples: crowdfunding platforms and
P2P lending, where users fund ideas and companies
that would barely succeed otherwise.
Kickstarter (crowdfunding), Lending Club (private lending
platform), Compte Nickel, which enables the opening of a bank
account in a convenience store, complete with debit card, and
with no more security than a mobile number. It’s ideal for those
outside the banking orbit, such as immigrants, defaulted
borrowers, the unemployed, and so on.

Guerrilla
Fintech companies that exploit inefficiencies in
banking and offer better service.
Interbank operation is a slow and expensive process
for customers. ‘Guerrilla’ companies use new
technologies and greater creativity to offer a faster
and cheaper service to bank customers. So far, the
clearest case of inefficiency exploited by fintech
companies is ‘Forex trading’. Companies such
as TransferWise (aimed at individuals)
or Kantox (aimed at companies) are enjoying huge
success by connecting buyers and sellers of
currencies on its platform to make the transaction
quickly and cheaply. Others include CurrencyFair,
and WeSwap.

Samurai
Compete directly with banks offering
similar services to the same customers.
Competing with banks on an equal footing is a complicated task
because of the enormous legal, technological and economic
barriers that protect the business. Yet, some companies
are ‘inroads’ into one of the most profitable sectors: private
banking.
The custom (and expensive) treatment offered by banks to their best
customers is being threatened by tools such as ‘portfolio
management’ or ‘smart investment’ offered by the likes
of Wealthfront, Nutmeg, Betterment, FutureAdvisor or Personal
Capital.
In just a few questions, they create the customer risk profile and
assess needs, and (via algorithm) the ‘optimal investment portfolio’ to
the type of client that no longer values being received by advisory
banks in luxurious offices with valuable paintings. They want more
efficient solutions in the area of financial planning.

Double Agent
Build on banks’ existing infrastructure.
This is one of the more interesting sectors by the confluence of business areas.
The idea is to build on existing structures of banks (in
technology, data and customer proximity) to offer new services. In this
category, we find mobile payments (Apple Pay, PayPal, Square, iZettle, Venmo),
aggregators (Mint, Simple, Open Bank Project), or big data and analytics
companies (Context Relevant, Dataminr, Antuit, Ayasdi). It’s in a very extensive
classification that we will delve into in more detail in another post.
What appears to be a win-win relationship (the customer benefits
from a better range of services, and banks and fintech companies benefit from a
growing market) actually represents a huge threat to traditional
banking: they may lose direct relationships with customers and
become a ‘dumb pipe’, which is what has happened to telecom
companies.
Moreover, this division isn’t the exclusive domain of fintech startups – Google,
Amazon, Facebook and Apple, and other companies such as Starbucks, have
made a dent in this particular sector. Many experts argue that it’s these
firms that will, thanks to their higher knowledge of the customer,
own this market and turn banks into mere suppliers.

Invaders from Outer Space
Offer a disruptive product or service
with the potential to transform the
financial industry.
In this area, bitcoin and its decentralized structure
(blockchain) are the best known. In their DNA is the
ability to completely transform the financial
industry, leaving current incumbents to the side,
yet their chances of failure are high.

GAFA
(Google, Apple, Facebook and Amazon)
Big tech companies are usually not very vocal when it comes to revealing their
FinTech “affairs.”
One of the examples of a dark horse in FinTech is Microsoft which has a wide range
of initiatives in FinTech and has recently went far with blockchain.
Since other tech companies are not looking to actively share their
activities, we have taken it in our stride to demonstrate that soon
banks will soon have another open competition which will be fierce.
One of the interesting examples is Google. Obviously, Android Pay is the first thing
that comes to mind. However, let’s focus on the FinTech ventures that Google
got involved in through Google Ventures, which has been profiled as
one of the hottest FinTech investors in the US.
Google Ventures is Google’s investment arm through which it is
discovering startups across industries to invest into. Google Ventures was
recently rebranded as GV and its colorful Google-style logo was transformed into a
modern black-and-white one. We don’t usually hear much of Google’s
activities in FinTech if it’s not about Android Pay, but GV has an
interesting portfolio worth paying attention to if you are looking to score
an investment from the tech giant.
https://letstalkpayments.com/what-is-google-doing-in-fintech/

GAFA
(Google, Apple, Facebook and Amazon)
Putting banks on fire with their rapid pace of
transformation.
In fact, the four tech giants have become such a
powerful and prominent part of society that the
acronym ‘GAFA’ appeared not so long ago across the
Web to describe this new ‘creature’.
The German Die Welt has published a piece this January
on the dangerous dominance of GAFA providing an
impressive estimation that the four companies have a
market value of $ 1.7 trillion. The publication has
shared data, that suggests GAFA companies on their
own have higher market capitalizations than many
nations.

What Is Google Doing in FinTech?
GOOGLE
VENTURE
Google Ventures is Google’s
investment arm through which it
is discovering startups across
industries to invest into.

APPLE: FINTECH OR NOT?
«But, while others have speculated on the idea of an Apple Bank (glance at
this 2013 article to see a few predictions that came true), I heard a convincing story in
2014 that made me confident that Apple will not be launching a bank»
Deborah Hopkins, CEO of CitiVentures and Chief Innovation Officer for Citi, addressed
a group of us from a NewCo event at CitiVentures’ offices in Palo Alto in Oct. of 2014.
She told us how she had proposed, several years earlier, to create
‘white label’ bank for Apple, where Citi would provide all
the back-end services, but the bank would be branded as
Apple. Pretty interesting.
Apple took the proposal seriously enough to have an internal discussion, but Eddy Cue,
SVP of Apple, later told Citi’s executives that while a lot of the ideas were intriguing,
at the end of the day they decided: “Apple isn’t a $%*!’ing
bank.” :-)
But not being a bank doesn’t mean Apple isn’t a FinTech
company, especially given ApplePay.
https://thefintechblog.com/tag/apple-pay/ https://thefintechblog.com/tag/apple-pay/

The Ongoing Debate: Are FinTech
Startups Really Disrupting Banks?
A Goldman Sachs research report in early 2015
estimated that a part of the traditional financial
services’ revenue ($4.7 trillion out of $13.7 trillion)
is at risk of being displaced by new technology-
enabled entrants which include FinTech players from
lending, wealth management, payments and others. But we have
a debate going on wherein some entities (basically big media
houses agreeing with each other) think that this disruption is
exaggerated and some think it is more real than it looks like. And
in this debate about “breaking banks,” some players are old
timers—such as Brett King who said in an interview recently, “I
just don’t see any scenario where we don’t lose the vast majority
of banks globally under $1 billion in assets unless they’re a pure-
play digital bank. Certainly, we’ll see massive consolidation in
community banking in the US. All because of digital disruption.”
https://letstalkpayments.com/the-ongoing-debate-are-fintech-startups-really-disrupting-banks/

The FinTech Revolution
The fintech firms are not about to kill off traditional
banks. The upstarts are still tiny: Lending Club has arranged
$9 billion in loans through its marketplace, small change
compared with $885 billion of total credit-card debt in
America. They have yet to be properly tested in a downturn.
No fintech product comes close to matching the
convenience and security of a current account at a
bank. And banks will gain from many of the innovations.
Square, for instance, is a system that makes it easier for small
businesses to take card payments; it will boost banks’
transaction volumes. Nonetheless, the fintech
revolution will reshape finance—and improve it—in
three fundamental ways.
http://www.economist.com/news/leaders/21650546-wave-startups-changing-financefor-better-fintech-revolution

First, the fintech disrupters will cut costs and
improve the quality of financial services. They are
unburdened by regulators, legacy IT systems, branch
networks—or the need to protect existing businesses.
Second, the insurgents have clever new ways of assessing
risk. The likes of Kabbage and OnDeck hoover up
information, on everything from social-media reviews to
companies’ usage of logistics firms, to assess how well
small businesses are doing. Avant uses machine learning
to underwrite consumers whose credit scores were
damaged during the financial crisis. Kickstarter uses the
wisdom of crowds to finance startups.

Third, the fintech newcomers will create a more diverse,
and hence stable, credit landscape. The business of
internet-based firms is less geographically concentrated than
that of bricks-and-mortar lenders: small American banks
already use lending platforms to diversify their own portfolios.
More important, the fintech firms avoid the two basic risks
inherent in banking: mismatched maturities and leverage.
Banks take in short-term liabilities such as deposits and turn
them into long-term assets such as mortgages. Fintech
lenders like Lending Club, Prosper and Zopa simply match
borrowers and savers directly. Banks borrow heavily to fund
lending; the new platforms do not. Instead, a lender commits
its money until the final payment is due and it bears the risk
of default.

The root “neo” in Greek means “young” and
“new”. So, neobanks are, in fact, the common
banks, only updated and upgraded. And as in
the realities of the 21st century, almost always
to update means to digitize and to pass to the
Internet, neobanks are, in fact,
conventional banks, but with no physical
branches; and using mobile applications
and websites to provide their services.
http://eng.banks.eu/news/info/2289/

Neobanks are also sometimes referred to as
online banks and direct banks. In the UK they
are named among the challenger banks,
because originally the intention of such banks
was to grab the segment of customers who
were dissatisfied with the level of service in the
usual crediting institutions.

"For a bank it is minimization of costs (no offices,
paper-based procedures, and so on), thereby
increase in the speed of servicing, arising super-
cheap tariffs, personal approach.
And for a customer it is savings and convenience, as
the cost of services is reduced.
Since neobanks are fintech companies, their future in
Europe and the United States seems very promising to
experts. Thus, the industry has become so popular that the world's
financial capitals, such as London and New York, are ready to fight for the
title of a global fintech center and are luring start-ups and neobanks with
favorable conditions for registration and taxation.

Fintechs Upset ( ) Banks
Since FinTechs don’t do over-the-counter services,
they upset the traditional banking business model by
showing people that they don’t need to go to a bank.
Today 80% of bank account holders manage their banking
via their smartphone.
FinTechs are attacking banks at several points on their value
chain. Accessible only via dedicated online platforms or
mobile apps, their disruptive innovations include
participative corporate funding (crowdfunding), peer-to-
peer loans, payments and money transfers, account and
savings management and even virtual currencies. These
upstarts are determined to shake up the financial services
industry.

Retail Banking
Retail banking has been hit the worst by the emergence of FinTech.
Retail banking segments such as lending, remittances and payments
have undergone disruptions
Infrastructure supporting retail banking such as bank branches and
ATMs are also undergoing a transformation,
It is considered just a matter of time till the rising cost of
operating branches and improving online sales will lead to
the closure of more and more bank branches.
ATM and mobile devices are expected to become the key channels for
consumer engagement.
Banks which are not digital are also at the risk of losing customer
relationships.
On the products side, emerging FinTechs such as Lending Club,
Prosper, Abra, Apple Pay, Android Pay among others are expected to
eat a significant portion of revenues.
According to an estimate, close to 20 to 30% of the retail banking
revenues will be at risk from FinTech disruptors by 2020.

Corporate Banking
Though some banks have established a digital presence,
the banks are underinvested when it comes to corporate
banking. The disintermediation of corporate banking seems to have a
lasting effect on the bank. When it comes to working capital management
and SME loans, firms such as CAN Capital, On-deck, MarketInvoice, Fundbox,
PayPal, Square, etc. have gained significant traction. Together, these firms
have lent more than US$ 12 billion in SME credit in 2015.
Business payments is another major disruption in this
space. Last year, KeyCorp Bank invested in several payments-related
startups post understanding that commercial clients also wanted their
payments process streamlined. Blockchain and IoT solutions to improve trade
finance have also gained some traction in the market. Recently, Barclays
partnered with Wave, a blockchain-based trade finance startup in a bid to
help business clients reduce costs associated with supply chain management.
Over $12 billion in loans were financed through online lending platforms in
the US in 2015. A study by BCG on shadow banking suggested that roughly
25% of US middle-market lending is now being provided by various shadow
banking players.

Investment Banking
The investment banking sector has undergone a sea change in the
last couple of years primarily because of the advent of FinTech such
as robo-advisors, social trading platforms, market funding
platforms, and market data and sentimental analysis service
providers. In the social trading space, startups such as ZuluTrade and Stocktwits have
seen good traction. These platforms act as a communication platform for the investing
community which uses information from tweets as cues for trading. The market-funding
platforms are occupied by small and large crowdfunding firms such as Kabbage, EquityNet,
Crowdcube, Fundable, Kickstarter, etc. The market data platforms are occupied by firms that
mostly use sentimental analysis and big data analytics to track the market movement. Some
of these firms are B2B firms while others provide direct services to end customers.
Companies such as Heckyl Technologies, SumZero, Contix and Kensho offer services such as
the ones listed above. Assets managed by robo-advisors are estimated to increase by 68%
annually and to about $2.2 trillion in five years. The robo-advisor space includes online
platforms such as Wealthfront, Betterment, AssetBuilder, Financial Guard, FutureAdvisor,
Jemstep, Personal Capital and SigFig. These firms develop automated investment portfolios
and recommendations for their individual clients. Market penetration of robo-
advisors has been estimated at $20 billion in 2015. More than 1,600
investment deals in the securities/capital market and wealth management space have taken
place in the last 10 years while roughly 8–10% of the deals in the US by value happen in this
segment.

Insurance
InsurTech could happen fast because of the rising consumer
demand. The sector is witnessing tremendous support from global investors.
Around $4.1 billion has been invested in InsurTech in the last five years. There are
around 700–800 InsurTech firms globally which are addressing the requirements
of the $4.5-trillion insurance industry but the state of InsurTech is at a stage of
infancy. There were 184 deals in the InsurTech segment in 2014 and 2015 with the
value of the deals was totaling at $3,391 million. Average deal values in 2014 and
2015 were $9.9 million and $24.3 million respectively.
Use of data analytics is a key differentiating factor between the
incumbents and the disruptors. Big data analytics play a major role in
getting 360-degree insights of the customer, forecasting their needs, providing
educational training and assessing their risk parameters to get them best quotes.
For example, Shift Technology leverages data science to automatically detect
networks of fraudsters in insurance and e-commerce. The solution is integrated
into the big data platform and is provided in a SaaS model. Likewise, smart
contracts powered by blockchain could provide customers and insurers with the
means to manage claims in a transparent, responsive and irrefutable manner.
Startups such as Everledger, Blockstream and Tierion are working in this direction.
Everledger provides an immutable ledger for diamond identification and
transaction verification for various stakeholders, from insurance companies to
claimants and law enforcement agencies.

Key Opportunities for Banks

Poor Bankers
• New technologies could see up to 30
percent of jobs eliminated from the
banking industry, Citigroup said in a
study published last week, highlighting
the threat to traditional companies.
• Revenues of financial technology
startups will leap 10 times, to more
than $100 billion, in the next four years
http://fortune.com/2016/06/27/five-hottest-fintechs/

The Impact of FinTech on the Banking Sector
Banks and financial institutions, which have understood that
disruptive innovations will change their businesses, are
collaborating with and investing in the FinTech industry in
order to adapt and refresh their core infrastructures.
On the other hand, banks which do not react to the
changes in the ecosystem driven by technological
developments and partner with FinTech start-ups
will experience the failure of their legacy systems
and lose their customers in this very competitive
environment. As big banks cannot take the same level of risks
and move as quick as start-ups can, they should contribute to
the development of start-ups and stimulate an innovative
ecosystem. http://bkm.com.tr/wp-content/uploads/2016/02/Banking-and-FinTech.pdf

http://banknxt.com/54042/banks-vs-fintech/

Who Wins the Match?
• Fintechs shall push banks out of their comfort
zone.
• This shall force the banking sector to a big
transformation into the digital banking.
• Failing this transformation some shall die, but
many of the banks shall survive.
• On the other hand new players (fintechs) shall
become the strong players in the game.
• At the end banks vs fintechs debate shall end, only
the technologically advanced financial institutions
shall be left.
• So, we say to the existing banks «change or die!»

It is argued that GAFA would never get into the banking business, not even with a white label
model. http://fintechranking.com/2016/05/06/the-banks-of-google-facebook-and-amazon/

Top Seven Reasons For Using FinTech
http://www.ey.com/gl/en/industries/financial-services/ey-fintech-adoption-index
The survey was conducted from 1 September 2015 to 6 October 2015.

Top Six Reasons For Not Using FinTech

FinTech Use in Major Urban Areas

Most Used FinTech Services

10 Statistics About Fintech That Will Blow
Your Mind
Global investment in Fintech currently stands at a
staggering $49.7 billion
Finance & lending is the Fintech category that
receives the largest amount of investment
dollars with 19% of total investment going into it.
Processing & payments category receives 14%,
while Mobile wallet, authentication, and
remittance receive 10, 7 and 7% respectively. Other
growing Fintech areas include P2P lending, mobile banking, prepaid cards, and
networks.
http://www.nordicstartupbits.com/2016/05/04/10-statistics-fintech-will-blow-mind/

10 Statistics About Fintech That Will
Blow Your Mind
 There are 1,362 Fintech companies in 54 countries
around the world with the USA, India, UK &
Ireland, Israel, and Germany having the most
Fintech start-ups.
 Government support for Fintech is huge.
Luxembourg has promised unlimited support to
entrepreneurs who choose to launch start-ups
in the country.
 43.4% of people who use Fintech services
choose to do so because of ease of access

10 Statistics About Fintech That Will
Blow Your Mind
 The countries with the friendliest business
climate for Fintech are
 USA
 Israel
 United Kingdom
 The top Fintech hubs include
 New York
 London
 Singapore
 Tel Aviv

The 2016 PwC Global FinTech Survey gathered the views of 544
respondents from 46 countries, principally Chief Executive Officers
(CEOs), Heads of Innovation, Chief Information Officers (CIOs) and top
management involved in digital and technological transformation,
distributed among five regions. The banking-focused cut is based on the
responses of 163 respondents from banks around the globe.

Key Messages

Mobile Banking Usage
Source: ING International (2015)
http://bkm.com.tr/wp-
content/uploads/2016/02/Ba
nking-and-FinTech.pdf

https://www.capgemini.com/sites/default/files/en/2016/10/world_fintech_report_2017.pdf

© Let’s Talk Payments, LLC | Copying or distribution without written permission from
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What’s Next From a Fintech Perspective?

How Would 2017 Look Like for
Blockchain?

Key Challenges Faced by Banks (US)

FinTech Ekosisteminin Buluşma Noktası
“FinTech Istanbul” platformu, yeni gelişmeye
başlayan Türkiye Finansal Teknolojiler Girişimcilik
Ekosisteminin sağlıklı büyümesi için gereken
önemli yapı taşlarını bir araya toplamayı amaçlar.
FinTech 101 Eğitimleri
«FinTech Istanbul’da, FinTech ile ilgili her alandaki
profesyonellerin beraber çalışmasını sağlamak amacıyla
çalışmalar yapıyoruz. Bu çalışmalar kapsamında, konu ile
ilgili farklı gruplara yönelik özel içerikli eğitimler
düzenliyoruz.»
http://fintechistanbul.org/

#Fintech
2016: Top
100
Influencers
and Brands
http://www.onalytica.com/blog/posts/fintec
h-2016-top-100-influencers-brands/

So Many Fintech Events Around the Globe

They don’t hold so many fintech conferences, awards, hackathons,
and accelerators, but yet are much more successful in fintech
achievements – countries such as India and Sweden
Narendra Modi, India’s prime minister, left, and Mark Zuckerberg, chief executive
officer of Facebook Inc., embrace at the conclusion of a town hall meeting at
Facebook headquarters in Menlo Park, California, U.S., on Sunday, Sept. 27, 2015.
Photographer: David Paul Morris/Bloomberg.

FinTech Gurusu Dave Birch Türkiye’ye
Geliyor
http://fintechistanbul.org/2016/11/30/fintech-gurusu-dave-birch-turkiyeye-geliyor/
Bankalararası Kart Merkezi ve FinTech Istanbul’un düzenlediği organizasyon ile Dave Birch
İstanbul’a geliyor.
Dave Birch uzun yıllardır kimlik ve ödeme sistemleri gibi alanlarda profesyonel bir kariyeri
sahip önemli bir FinTech gurusu. Dünyada bu alanda takip edilmesi gereken isimler
arasında her zaman ilk isimlerden birisi olarak öne çıkıyor. Dünyanın çeşitli yerlerinde
verdiği konferans ve gerçekleştirdiği sunumların ötesinde 2013 yılında kaleme aldığı, en
çok satanlar listesine girmeyi başarmış, ‘Identity is the New Money’ isimli kitabın yazarı.
Dave Birch 13 Aralık 2016 günü Bankalararası Kart Merkezi ve FinTech Istanbul’un davetlisi
ve misafiri olarak İstanbul’a gelecek.
Gerçekleştirilecek buluşmada Birch’ün kitabı ilk kez Türkçe çevirisi ‘Kimlik: Yeni Para’
adıyla okuyucular ile buluşacak.

Six Mistakes Fintech Startups Make That
Lead to Failure
• Worst mistake fintechs can make is
thinking they are going to eliminate the
banking industry
• Blind faith in an idea
–A good idea is not synonymous for success.
• Products do not sell themselves
–Sales and marketing plans are vital for the
technological product to conquer the
markethttps://www.bbva.com/en/news/economy/financial-and-commercial-services/fintech/six-mistakes-fintech-startups-make-lead-failure/

Lead to Failure
• A website that’s “under construction”
– Credibility is essential to make deals and a website is the cover letter
• Ignoring economic cycles
– A startup that is going to launch an alternative lending platform,
for example, will have to take into account the interest rates at the
time and foresee rate hikes to prevent the economic cycle from
ruining business.
• Regulation is very important
– Legal expertise is very important for certain sectors of the
financial world, especially in terms of privacy and use of data. This
is something fintech firms should never forget to include in their
business plan.https://www.bbva.com/en/news/economy/financial-and-commercial-services/fintech/six-mistakes-fintech-startups-make-lead-failure/

Lead to Failure
• Investment and financing
–When requesting investment, ask what type of
reports will be needed, what information is
requested and the policy to follow to reach an
agreement.
–For capital injections, in order to avoid fraudulent
operations like money laundering, startups need
to be well-informed and select a venture capital
investor with experience in the fintech
ecosystem. If there is a sector where experience
matters, it’s the financial technology industry.
https://www.bbva.com/en/news/economy/financial-and-commercial-services/fintech/six-mistakes-fintech-startups-make-lead-failure/

The Future of Banking
http://banknxt.com/53478/future-banking-scenarios/

Future Use of FinTech

http://www.slideshare.net/ishmelev/bank-futurehttp://www.slideshare.net/ishmelev/bank-future

Fintech Versions

Branchless Banking is Gaining
Acceptance
http://www.slideshare.net/_TheFamily/the-next-10-years-in-fintech-by-philippe-gelis-from-kantox

http://www.slideshare.net/_TheFamily/the-next-10-years-in-fintech-by-philippe-gelis-from-kantox

Ürünü ve geliri olmayan Magic
Leap’in değeri 4,5 milyar dolar
http://blog.galatabusinessangels.com/urunu-ve-geliri-45-milyar-dolar/
Magic Leap’in teknolojisine dair yayınladığı birkaç demo’dan görüldüğü kadarıyla, girişim
günümüz artırılmış gerçeklik deneyimlerini aşacak bir proje üzerinde çalışıyor. Bu deneyim,
insanların internetten satın almayı planladıkları şeyi kendi gözleriyle görmelerini ve dijital
alıverişin sınırlarının ortadan kalkmasını sağlayabilir.

http://blog.galatabusinessangels.com/urunu-ve-geliri-45-milyar-dolar/
Artırılmış ve sanal gerçeklik girişimi Magic Leap, uzun yıllardır üzerinde çalıştığı
teknolojisinin büyük bir bölümünü perde arkasında tutmayı başardı. Buna rağmen çok uzun
bir yatırımcı listesine sahip olan girişim, son olarak 4,5 milyar dolar değerlemeyle 793,5
milyon dolar Seri C yatırımı aldı.

Türk Bankalarının Fikir Yarışmaları
Bankacılık ürün ve hizmetleriyle ilgili yenilikçi, yaratıcı fikirlerin
var. Ya da teknolojik girişim projelerin var. O zaman hiç durma
sen de İcat Çıkar. TEB Akıl Fikir Yarışması ile bilgini, emeğini ve
hayallerini gerçek bir başarıya dönüştürebilir ve ödüller
kazanabilirsin.

Türk Bankalarının Fikir Yarışmaları

Accelerators and Incubators
Accelerators and incubators are very similar
organisations which select entrepreneurs or
startups to join them for a limited time period,
often taking an equity stake in return for coaching,
mentoring, and introductions to clients and
investors.
Incubators specialise in nurturing entrepreneurs
with great ideas but no business plan to harness
them, whilst accelerators take in early stage
companies to help accelerate their growth.

Unicorns and Gazelles
These terms are used to differentiate particularly
successful startups.
Unicorns are those companies with a valuation in
excess of $1bn. But beware, there is a lot of
controversy about the label, with allegations of
inflated valuations and murky funding rounds.
Gazelles are companies which grow at 20% a year
for a minimum of four years, from a minimum base
of $100,000.

Travel in The
History of
Financial
Technology

1970’LER - İLK KREDİ KARTI OTORİZASYON SİSTEMİ
- Provizyonları üstlenen BASE I sistemi DEC
donanımı ile hayata geçirilirken, BASE II için IBM ile
anlaşılmıştı. Dee, 1973 Kasım ayında IBM’e büyük
bir donanım siparişi vermişti. IBM’in deneyimli
sistem uzmanı Roger Peirce ve IBM’den diğer
uzmanlar sistemi kurmak ve devreye sokmak için
Visa’nın teknik ekibiyle yakın bir çalışma
gerçekleştirdiler.
‘60’lı yıllarda Türkiye’de Diners Club kredi kartı sahibi
olmak “milyoner” olmakla özdeş bir anlam ifade
etmektedir. Öyle ki, 1968 yılı 27 Şubat’ında İstanbul’da
Konak Sineması’nda gösterime giren, başrollerini Danny
Kaye, Cara Williams ve Martha Hyer’in oynadığı “The
Man From the Diners Club” isimli Amerikan komedi filmi
bile “Milyonerler Kulübü” adıyla oynamıştır.
BKM - Anılarla ve Fotoğraflarla Türkiye’nin Kartlı Ödeme Sistemleri Tarihi

27 Şubat 1972 tarihinde Milliyet gazetesinde yayınlanan
bu ilanda, Diners Club sahibi olmayanlar, cebindeki parası
yeterli gelmediği için yediği yemeğin hesabını bulaşıkları
yıkayarak ödemek zorunda kalan bir işadamının aczi
üzerinden tarif ediliyor.
ANADOLU KREDİ KARTI, 1976 - Türkiyede
basılan ilk kredi kartı.

1977 yılı Mayıs ayında Türkiye kartlı
ödeme sistemleri sektörünü yeni bir
evreye taşıyacak önemli bir adım atan
Pamukbank, uluslararası bankaların
oluşturduğu bir birlik olan Interbank
Card Association ile yaptığı işbirliği
sonucu özel logolu ilk kart olan
“Eurocard Pakkart”ı müşterilerine
duyurur.
O dönemdeki kartlarda manyetik şerit ya da “akıllı yonga
(chip)” yoktur. Kartlar “kabartma rakamlar” kullanan özel
pres cihazlarından geçirilmektedir. Bu cihazlara “imprinter”
denmektedir. Bir alışverişin sonunda ödeme yapmak
isteyen müşteri kartını işyerinin satış temsilcisine iletir. Satış
temsilcisi de kredi kartını müşterinin imzalamak zorunda
olduğu satış belgesiyle birlikte “imprinter” adı verilen
cihazın içine yerleştirir. Imprinter, kredi kartının üzerinde
basılı olan kart hamilinin adı ve soyadı, kart numarası ve
kartın geçerlilik süresine ek olarak işletmenin ticaret
unvanı, adresi ve telefonu gibi çeşitli bilgileri satış
belgesinin üzerine aktarır. Genelde birden fazla nüsha
şeklinde basılan satış belgesinin müşteri tarafından
imzalanmasından sonra, belgenin bir nüshası müşteriye
verilir.

John Shepherd-Barron tarafından icat edilen
ATM (Automated Teller Machine) cihazı,
dünyada ilk kez 27 Haziran 1967 tarihinde De
La Rue firmasınca Barclays Bank için üretildi ve
Londra’nın kuzeyindeki Enfield kasabasında
hizmete sunuldu.
Türkiye’nin ilk ATM cihazı,
“Bankamatik” adı ile İş Bankası
tarafından 1982 yılı Nisan ayı
başında duyurulur.
İş Bankası’nın ilk bankamatiklerinde
kullanılan delikli kart...

1982 yılında kurulan ilk
bankamatiklerin, İş
Bankası’nın iç iletişim
dergisinde duyurusu…
Online çalışan ilk
ATM, NCR
tarafından temin
edilir ve İş
Bankası’nın
Yenişehir Ankara
Şubesi içinde 25
Aralık 1987’de
hizmete açılır.
Online hizmet verebilen
bankamatiklerin
duyurusu için 1987
yılında yayınlanan bir
ilan.

Yapı Kredi tarafından
geliştirilen Otobanka, 1991
yılı Mart ayında İstanbul’da
E-5 Karayolu Topkapı
Tercüman Lisesi karşısındaki
BP Akaryakıt İstasyonu’nda
devreye girer. Ancak, tüm
yenilikçiliğine rağmen bizim
yollarımıza, bizim
alışkanlıklarımıza pek uygun
değildir ve “tutmaz”.
Bankalar da bu konuda
ısrarcı davranmaktan
vazgeçerler.
Kaynak: Milliyet gazetesi, 18
Mart 1991, s. 28

Türkiye’de ilk kez 1990 yılı
başında kurulan POS
cihazlarından biri…

KART KULLANIMINI YAYGINLAŞTIRMAK
HİÇ KOLAY OLMADI – 1990’lı yıllar,
bankaların kredi kartı kullanımını
yaygınlaştırmak için ciddi çabalar
harcadığı, yenilikçi fikirlerin birbirini
kovaladığı, dünyada ilklerin başarıldığı
yıllar oldu. Buna rağmen kredi kartı
kullanmaya yönelik bir direnç de söz
konusuydu. Fotoğrafta, dönemin
başbakanı merhum Süleyman Demirel’in,
1993 yılında kendisine gönderilmiş kredi
kartını kibarca reddettiği mektup
görülüyor…

İşlem maliyetlerinin ciddi biçimde düşmesini
sağlayan alternatif bankacılık kanalları,
teknoloji kullanımının odağına müşteriye
yönelik hizmetleri konumlandırır. Telefon
bankacılığı bu alternatif kanallardan biri
olarak ‘90’lı yılların özellikle ikinci yarısından
Advantage Card’ın aldığı
ivmeyi gören bankalar
cephesi taksitlendirmeler
konusunda
hareketlenmiştir. Üye
işyerlerinde taksit olanağı
da sağlayan ilk taksitli
“çok ortaklı uluslararası
kredi kartı” olan
Finansbank Galaxy Card
1999 yılı Aralık ayında
hayatımıza girer. Galaxy
Card dünyanın her
yerinde geçerlidir. Faizi
düşüktür ve kolay taksit
olanağı sunmaktadır.
Ayrıca puan toplama
olanağı da vardır.BKM - Anılarla ve Fotoğraflarla Türkiye’nin Kartlı Ödeme Sistemleri Tarihi

Citibank, 1995 sonunda hizmete sunduğu CitiPhone sayesinde günün 24 saati dünyanın her
yerinden bankacılık işlemleri yapılmasına olanak veriyordu.

“Don”a İmza Atılan Yıllar
1980’li yıllarda Anadolu Kredi Kartı A.Ş.’nde Operasyon Müdürü olarak görev
yapan Haluk Yücelir, toplumun o dönemde sektördeki terimlere ne kadar
yabancı olduğunu göstermesi bakımından, oldukça ilginç (!) bir anısını
anlatıyor:
“Sene 1986. Anadolu Kredi Kartları A.Ş.’nde Kart Operasyon Müdürü olarak
görev yapıyorum. O tarihte yurtdışı işlevli Visa ve MasterCard kredi kartlarının
kart kabul işlemlerini, özellikle turistik bölgelerde yerleşik bulunan dokuz
şubemiz vasıtasıyla gerçekleştiriyoruz. Bir gün İzmir’de bir halıcı, kart sahibine
halı satıp, imprinter cihazıdan slip çekmiş, sonra da otorizasyon alarak işlemi
tamamlamış. Ancak iş kargoya vermeye gelince yanlışlıkla farklı bir halı
göndermiş. Tabii, bu bir para iadesi sebebi. Bizdeki teknik deyimiyle ‘charge-
back’ konusu. Uzatamayalım, charge-back safhasından sonra biz işyeri ile
mahkemelik olduk. Ben şahit ve aynı zamanda davacı taraf olarak mahkemeye
çağırıldım. Hâkim Bey, benden olayın akışını anlatmamı istedi. İfademin bir
yerinde ‘kart sahiplerinin işlemlerini onaylamak için slip imzaladıklarını’ ifade
edince, Hâkim bey hiddetlenerek ‘Sen benimle dalga mı geçiyorsun, seni içeri
attırırım, kart sahipleri dona mı imza atıyor yani’ dedi. O gün ve takip eden
dönemlerde slibin ne anlama geldiğini anlatmak için ciddi çaba gösterdim.”
Kaynak: Haluk Yücelir ile Söyleşi, 29 Kasım 2015.

MOBİL BANKACILIK DİLE GELDİ...
Gelişmiş ses teknolojileri konusunda birçok projeye imza atmış
olan Speechouse, Garanti Bankası ile olan iş birliğini bir
adım ileri taşıdı. Garanti Cep kullanıcılarına hizmet veren
Speechouse desteği ile geliştirilen Mobil işlem Asistanı (MİA)
müşterilerin sorularına anında cevap veriyor. MİA ile işlemlerin
çok daha hızlı ve kolay yapılabildiğini belirten Garanti Bankası
Genel Müdür Yardımcısı Didem Dinçer Başer " Vadeli hesabımın
vade süresine zaman doluyor?', "Kredi faiz oranları nedir?' veya
'Kartımın son kullanma tarihi nedir 'gibi birçok sorunun cevabına
hızla ulaşıyorsunuz.'Bonus kartım ile geçen ay akaryakıta ne
kadar harcadım?'sorusunu sorarak birden çok tıklamayla
ulaşılabilecek bilgiyi sesle hemen alabiliyorsunuz. Garanti Cep
içinde yapılamayan işlemler için ise ilgili kanala
yönlendiriliyorsunuz. Örneğin 'Kartımı kaybettim' diyen bir
kullanıcı, kayıp çalıntı bildirimi için Alo Garanti'y e
yönlendiriliyor. Mobil İşlem Asistanı'nı devreye aldığımız ilk iki
günde 100 binden fazla müşterimiz uygulamayı hemen kullandı"
dedi.

GERÇEK TERMİNATÖR TEB'LE
İSTANBUL'DA ...
TEB, biyomekatronikte devrim yaratan ve kaybettiği
bacakları yerine kendi biyonik bacaklarını yapan MİT
Biyomekatronik Grubu Yöneticisi Doç. Dr. Hugh Herr'i
Türkiye İnovasyon Haftası kapsamında Türkiye'ye
getiriyor. Aynı zamanda, İnovasyon Haftası
kapsamında,'RE PLAY'adı verilen özel bir alanda da
sporda inovasyona dikkat çekecek olan TEB,
katılımcılara geleceğin antrenman yöntemlerini
deneyimletecek. 06 December, 2016

TEB, GİRİŞİM BANKACILIĞI İLE 14
MİLYON TL KAYNAK SAĞLADI
Girişim bankacılığı ile bugüne kadar Türk Ekonomi Bankası
(TEB) Kuluçka Merkezi'ne yaklaşık 4 bin 300 yeni iş fikri
gelirken, bunlardan 441'inin kabul edildiğini belirten TEB
Genel Müdürü Ümit Leblebici, 15 girişimcinin 14 milyon
liralık yatırım almayı başardığım ifade etti. Türkiye
İhracatçılar Meclisi (TİM) işbirliği ile Girişim Evleri'nin
sayısını da dokuza çıkardıklarım söyleyen Leblebici,
"inovasyonu her alanda desteklemeye devam ediyoruz.
Bu yıl ise Let's UP programı kapsamında 150 öğrenciye
eğitim ve atölye çalışmalarıyla destek verdik. Ağustos ayı
içinde 10 girişimciye bir hafta süren Silikon Vadisi Seyahati
ve Girişimcilik Programı imkanı sunduk" dedi.

YAPI KERDİ’DEN DİJİTAL
BANKACILIKTA DEVRİM
Yapı Kredi, dijital bankacılık alanında yeni teknolojik
uygulamaları hayata geçirdi. Banka açıklamasına
göre, mobil şubesini müşterilerine en iyi ve en hızlı
deneyimi yaşatmak amacıyla tamamen yenileyen
Yapı Kredi, ayrıca göz taraması teknolojisiyle
bankacılık sektöründe bir ilki daha gerçekleştirdi. Bu
yenilik sayesinde akıllı telefonlar üzerinden, şifre
kullanmaksızın daha hızlı, daha kolay ve daha güvenli
giriş yapılabiliyor. Yenilenen mobil şube bunun yanı
sıra QR kod ile ATM’ye dokunmadan çok hızlı para
çekme işlemi ve Çağrı Merkezi’ne direkt bağlanma
gibi özellikleriyle de öne çıkıyor. 06 December, 2016

TEKNOLOJİYE HER YIL 100 MİLYON
DOLAR
Akbank Direkt Bankacılıktan Sorumlu Genel Müdür Yardımcısı Tolga
Ulutaş, teknolojinin gelişmesinin bankacılık sektörünü de direkt
etkilediğini belirterek “Müşterilerimiz ihtiyaçlarını mümkün olduğunca
hızlı ve kolay bir şekilde gerçekleştirmek istiyor. Akbank olarak,
dünyadaki inovatif gelişmeleri yakından takip ediyor ve her yıl
teknolojiye 100 milyon dolar yatırım yapıyoruz” dedi. Müşterilerinin,
kartları yanlarında olmasa bile Akbank Direkt Mobil ile para
çekebildiklerini belirten Ulutaş, şöyle konuştu: “9 milyondan fazla
kişinin telefonlarına indirdiği Akbank Direkt Mobil uygulaması ile artık
ödeme yapmak daha hızlı ve kolay hale geldi. Dijital ödemeler
kapsamında Akbank Direkt, android telefonlar ile kart kullanmadan
alışveriş yapma imkanı veriyor. Akbank Direkt Mobil kullanıcıları, NFC
(Near Field Communication) özellikli telefonlarından tüm Akbank kredi
kartları ve Neo kartlarını mobil ödeme için tanımlayıp; dünyadaki tüm
temassız POS cihazlarında kullanılabiliyor.”

‘DİJİTALLEŞMEYEN BANKALARIN
ELİMİNE OLMA TEHLİKESİ VAR’
Bankacılık sektöründe yaşanan teknolojik gelişmeleri sektör verimliliğini
artırmasının yanı sıra müşteri memnuniyeti ve faydası açısından son derece
önemli açılımlar ortaya koyduğunu söyleyen Denizbank Dijital Kuşak
Bankacılığı Grubu Genel Müdür Yardımcısı Murat Çelik, “Türkiye’de bankalar
dijitalleşme anlamında ciddi yatırımlar yapıyor, hatta bu konuda yeterli gayreti
gösteremeyen bankalar elimine olma tehlikesiyle karşı karşıya” dedi.
Günümüz ekonomik koşullarında rekabetin ulaşmış olduğu boyutların,
bankaların her geçen gün kendilerini daha iyi düzeylere taşıyacak yeni
stratejiler geliştirmelerini zorunlu kıldığını ifade eden Çelik, bu stratejilerin
temelinde de teknoloji ve inovasyonun yattığını belirtti. Dijitalleşmenin genç
nüfusun potansiyeliyle paralel biçimde artışının, sektörün bu alandaki
gelişimine hız kazandırdığını ifade eden Çelik, “Bankacılık sektöründe
dijitalleşmenin artmasıyla önemli bir açılım kazanan bankacılık uygulamaları
hız, güvenlik, etkinlik ve maliyet avantajı yanı sıra kullanıcı ve müşteri
memnuniyeti konularında önemli avantajlar sağlıyor” diye konuştu.

DENİZBANK’TAN İNOVATİF ÜRÜNLER
Dijital bankacılık alanındaki çalışmalarına 2012 yılında
kurduğu ‘Dijital Kuşak Bankacılığı Departmanı’ ile hız
veren Denizbank, yeni trendler ve artan müşteri ihtiyaçları
çerçevesinde dijital ve mobil alanda birçok inovatif ürün
sunuyor. MobilDeniz’in müşteri deneyimi merkeze
alınarak tasarlanan kullanıcı dostu bir mobil bankacılık
uygulaması olduğunu söyleyen DenizBank Dijital Kuşak
Bankacılığı Grubu Genel Müdür Yardımcısı Murat Çelik,
“DenizBank müşterisi olmayan kullanıcılar da login
olmadan istediği şekilde sıralayabildiği ve seçtiği
widget’lar ile piyasa bilgilerini, hisse senedi fiyatlarını ve
güncel döviz kurlarını görüntüleyebiliyor” diye konuştu.

İŞCEP MÜŞTERİ SAYISI 3.5 MİLYONU
GEÇTİ
Mobil bankacılıkta müşteri sayısını geçen yıla oranla
yüzde 55 artıran İş Bankası’nın aktif müşteri sayısı 3.5
milyonun üzerine çıktı. İşCep’ten ağırlıklı olarak bakiye
görüntüleme, kredi kartı işlemleri, fatura ödeme,
EFT/havale ve yatırım işlemleri gerçekleştiriliyor. Geçen yıl
Eylül ayında yeni nesil dijital bankamatik olarak
tanımladıkları İşCepMatik cihazının lansmanını yapan İş
Bankası, dijital dönüşüm sürecinde önemli bir adım daha
attı. Sadece mobil bankacılık uygulaması İşCep aracılığıyla
para çekmeyi sağlayan bu cihaz ile müşterilerin para
çekme işlemini kartsız ve klavye ile şifre tuşlamadan kısa
süre içinde tamamlamasına olanak sağlanıyor.

27 MİLYON KİŞİ KULLANDI
Türkiye Bankalar Birliği'nin yayınladığı istatistiklere
göre, mobil bankacılık yapmak üzere sistemde
kayıtlı olan ve en az bir kez giriş işlemi yapmış
müşteri sayısı Eylül 2016 itibarıyla 27 milyon kişi
oldu. Bunların 17 milyonu (yüzde 61'i) Temmuz-
Eylül 2016 dönemi içinde en az bir kez giriş işlemi
yaptı. Son bir yıl içinde en az bir kez giriş işlemi
yapmış mobil bankacılık müşteri sayısı ise yaklaşık
21 milyon kişi olarak gerçekleşti. Temmuz-Eylül
2016 döneminde mobil bankacılık ile
gerçekleştirilen yaklaşık 7 milyon adet yatırım
işleminin hacmi 67 milyar TL oldu.

ZhongAn (China): ZhongAn is an Internet insurance company, head-quartered in Shanghai. ZhongAn applies mobile Internet, cloud computing, big data and other new
technologies for a variety of different purposes including product design, automatic claims settlement, market positioning analysis, risk control and back-end claims
services.
Oscar (USA): Oscar is a health insurance company that employs technology, design, and data to humanise health care. With a team of technology and healthcare
experts, Oscar looked at the current state of the US healthcare system, and were frustrated by the consumer experience.
Wealthfront (USA): Wealthfront is focused on taking wealth management services typically reserved for the ultra-wealthy, automating them and delivering them
directly to the investors at a low cost, which is free for accounts under $10,000
Qufenqi (China):
Funding Circle (UK): Funding Circle is one of the world's leading marketplaces, exclusively focused on small businesses more than £1.3bn ($2bn) has been lent to
20,000 businesses in the UK, USA, Germany, Spain and the Netherlands. Businesses can borrow directly from a wide range of investors, including more than 40,000
people, the UK Government, local councils, a university and a number of financial organisations.
Kreditech (Germany): Kreditech Group's mission is to improve financial freedom for the under banked by the use of technology. Combining non-traditional data
sources and machine learning, the Company is aiming to provide access to better credit and a higher convenience for digital banking services.
Avant (USA): Atom Bank is breathing new life into banking by building everything digitally. Atom is an App based bank that doesn't have any branches. The App uses
biometric security: face and voice recognition.
Atom Bank (UK): Atom Bank is breathing new life into banking by building everything digitally. Atom is an App based bank that doesn't have any branches. The App
uses biometric security: face and voice recognition.
Klarna (Sweden): Klarna provides e-commerce payment solutions for merchants and shoppers. Klarna offers safe and easy-to-use payment solutions to e-stores. At the
core of Klarna's services is the concept of after delivery payment, which lets buyers receive ordered goods before any payment is due. At the same time, Klarna
assumes the credit and fraud risk so that retailers can rest assured they will receive their money.
OurCrowd (Israel): OurCrowd is an equity-based crowdfunding platform, built for accredited investors to provide venture capital funding for Israeli (and later global)
venture capital start-ups. Accredited investors who are accepted into the community can make minimum investments of $10,000 per deal.
Ant Financial (China): Ant Financial, formally known as Alipay, which is the world's leading third-party payment platform. Ant Financial is dedicated to creating an open
ecosystem, providing inclusive nancial services to small and micro enterprises and individual consumers.
Quadian (China): Qudian is a student Micro-loan Site, an installment payment and investment management platform.
Oscar (USA): Oscar is a health insurance company that employs technology, design, and data to humanise health care. With a team of technology and healthcare
experts, Oscar looked at the current state of the US healthcare system, and were frustrated by the consumer experience.
Lufax (China): Lufax is an Internet based lending and wealth management platform, which is owned by Ping An Group. Lufax aims to provide one of the most
comprehensive wealth management platforms globally.
ZhongAn (China): ZhongAn is an Internet insurance company, head-quartered in Shanghai. ZhongAn applies mobile Internet, cloud computing, big data and other new
technologies for a variety of different purposes including product design, automatic claims settlement, market positioning analysis, risk control and back-end claims
services.
Atom Bank (UK): Atom Bank is breathing new life into banking by building everything digitally. Atom is an App based bank that doesn't have any branches. The App
uses biometric security: face and voice recognition.
Kreditech (Germany): Kreditech Group's mission is to improve financial freedom for the under banked by the use of technology. Combining non-traditional data
sources and machine learning, the Company is aiming to provide access to better credit and a higher convenience for digital banking services.
Avant (USA): Avant is a online lending platform lowering the costs and barriers of borrowing for consumers. Avant launched in 2012 offering consumer personal loans.
Over $1 billion dollars in loans has been originated through its platform.
Sofi (USA): SoFi is a new kind of finance company taking a radical approach to lending and wealth management. SoFi helps early stage professionals accelerate their
success with student loan refinancing, mortgages, mortgage refinancing, and personal loans.
JD Finance (China): JD Finance Group is engaged in seven lines of business: supply chain finance, consumer finance, crowd-funding, wealth management, payment
services, insurance and securities services. JD finance closely manages potential risks in order to improve the efficiency of the financial services sector and lower the
costs of financial services generally.
The Top 10 companies in the Fintech 100
2016
2015

Milestones in the Internet Age
https://www.finextra.com/finextra-downloads/featuredocs/prod0000000000345837.pdf

https://h2.vc/reports/fintechinnovators/2016
2016 FINTECH 100

Strengths
• Economic stability in the past decade with steady growth
• Strong and highly regulated banking sector since 2001
• Future objectives
• Making Istanbul a global financial centre, developing the ICT sector and becoming a cashlesssociety by 2023
• Burgeoning infrastructure in Istanbul to increase communication and collaboration between banking, financial services,
technology and FinTech sectors, the Turkish Government and regulatory authorities
• Having majority of the leading organisations from banking, financial services, FinTech and technology sectors in
Istanbul
• Transformation of Istanbul into a start-up hotspot
• Increasing brand value of Istanbul in the global start-up scene, promotion of entrepreneurship in Turkey, increasing
government support for start-ups(e.g. incentives, tax exemptions and funds), developing and growing start-up
ecosystem in Istanbul and the increase in VC investments into Istanbul start-ups
• The increase in the number of entrepreneurship centres, STPs and industry-university collaborations
• Tech-savvy and highly innovative banking sector and (potential) interest among banks to engage with the FinTech
sector
• Banks’ and financial services firms’ interest towards collaborating with or creating (potential) FinTech accelerators in
Turkey
• Access to a large, young and educated talent pool that have international study and work experience (e.g. increase in
the reverse brain drain to Turkey)
• Having a large tech-savvy young population
• High mobile phone and smartphone penetration rate and the increasing usage of mobile banking services
• Central location between Europe and the Middle East

Opportunities
• Creating an infrastructure to increase communication and collaboration between
industries to develop the FinTech sector
• Making Istanbul a global financial centre
• Establishment of Finance Technopark, which is the first thematic technopark in
Turkey focused on finance
• Developing an infrastructure to foster innovation
• Increasing the number of start-up acceleration and incubation programmes in
Istanbul
• Increasing mentorships provided by banks to FinTech companies
• Banks’ and financial services firms’ interest towards creating or collaborating with
start-up accelerators and incubation programmes in Turkey
• Attracting talented and multilingual workforce, ranging from fresh graduates to
senior executives
• High unbanked and underbanked population
• Collaborations and partnerships with foreign FinTech organisations
• Central location between Europe and the Middle East with a potential to become a
regional FinTech hub

Weaknesses
• The existing need for developing infrastructure
• Lack of industry experts for Financial Services and
ICT sectors to support and promote these sectors
• Low availability of VCs
• Weak communication and collaboration between
technology companies and banks
• Turkish banks’preference for developing innovative
technologies in-house

Trends in the Banking Industry Ranked by
Importance and Likelihood to Respond

Summary of the FinTech-related trends

The Fintechs

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