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The State of the Play: The World FinTech Report Key Findings

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Bill Sullivan, Global Head of Market Intelligence at Capgemini dives deeper into the findings of the World FinTech Report.

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The State of the Play: The World FinTech Report Key Findings

  1. 1. #WFTR17 Bill Sullivan Global Head of Market Intelligence Capgemini Financial Services #WFTR17 @WFSullivan3
  2. 2. #WFTR17 #WFTR17 - The Wall Street Journal, 18-Nov-2015 - The Banker, 10-Jun-2015 - Time, 8-Jul-2015 - Payments Industry Intelligence, 15-Jul-2016 Technology threatens the insurance business - The Economist, 16-Mar-2015 - Tech Crunch, 5-Aug-2015 - Forbes, 22-Dec-2015 WeAreAllFamiliarwiththeMediaHypearoundFinTech
  3. 3. #WFTR17 #WFTR17 Our World FinTech Report Is a Multi-Prong Collaboration World FinTech Report 2017 Agents of Change Executive Roundtables Finance Connect FINTECH Conference
  4. 4. #WFTR17 #WFTR17 Check Out Our Agents of Change Already Released
  5. 5. #WFTR17 #WFTR17 Today’s Three Themes from World FinTech Report FinTech’s gaining traction and raising bar, but long way to go1 Incumbents actively addressing FinTechs with mixed results2 Leadership and culture are critical to applying innovation3
  6. 6. #WFTR17 #WFTR17 Global FinTech Financing Activity ($billion), 2008-15 Source: CBInsights $billion 1.1 1.7 1.8 2.3 2.8 4.3 12.6 17.8 163 220 317 437 582 748 848 1,062 0 300 600 900 1200 0 5 10 15 20 2008 2009 2010 2011 2012 2013 2014 2015 Deals Exponential Growth in FinTech Financing Since 2013
  7. 7. #WFTR17 #WFTR17 China and India Lead Customer Adoption of FinTech 84.4% 76.9% 69.6% 53.5%53.3%53.0%51.6%48.8% 45.8% 42.8%40.6%39.6% 36.2% 30.4%29.8% Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016 Customers Using At Least One Non-Traditional Firm for Financial Services, 2016
  8. 8. #WFTR17 #WFTR17 Younger, Tech-Savvy, and Affluent Lead Adoption Customer Usage of Non-Traditional Firms, 2016 Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
  9. 9. #WFTR17 #WFTR17 Trust Advantage Flips with Positive Experience Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016 52.9% 56.3% 0% 15% 30% 45% 60% Traditional Firms Non-Traditional Firms Customer Trust for Traditional and Non-Traditional Firms (%), 2016 Trust for Traditional and Non-Traditional Firms for Customers with a Positive Experience (%), 2016 36.6% 23.6% 0% 15% 30% 45% 60% Traditional Firms Non-Traditional Firms Gen Y and Tech-Savvy customers have higher trust in traditional firms, they also have higher distrust in traditional firms
  10. 10. #WFTR17 #WFTR17 Traditional Firms Regaining Value Perception Customer Value Perception for Traditional vs. Non-Traditional Firms, 2016 Source: Capgemini and LinkedIn WFTR Voice of Customer Survey 2016 Ability to access services from other institutions through your FS institution’s Apps Contextual experiences Forte of Traditional Firms Even Competition Forte of Non- Traditional Firms Personal interaction User experience Security and Fraud Protection Access to product/services more innovative and relevant to me Transparency Ability to integrate my social world with my financial world Quality of service Better value for moneyConvenience Brand Timely and efficient service Low Importance Medium Importance High Importance Non-Traditional Firms Advantage Noted in 2016 WRBR
  11. 11. #WFTR17 #WFTR17 Most Firms Struggling to Meet Customer Expectations Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016 Top Three Moments of Truth for Customers, by Domain, 2016
  12. 12. #WFTR17 #WFTR17 Today’s Three Themes from World FinTech Report FinTech’s gaining traction and raising bar, but long way to go1 Incumbents actively addressing FinTechs with mixed results2 Leadership and culture are critical to applying innovation3
  13. 13. #WFTR17 #WFTR17 Incumbents See FinTechs As Potential Partners 22.4% 43.1% 53.7% 62.7% 76.7% Fintech Firms Will Not Survive on Their Own Fintech Firms Pose a Significant Threat Fintech Firms Are Good Acquisition Targets Fintech Firms Are Setting the Bar Higher Fintechs Provide Opportunity for Partnership Executives’ View of FinTech Firms (%), 2016 Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
  14. 14. #WFTR17 #WFTR17 Active Partnering with FinTechs & Building In-House 18.6% 26.3% 29.6% 34.3% 38.0% 59.2% 60.0% Acquisition of FinTech Firm(s) Others Setting Up of Accelerator Partnering with an Educational Institute Investment in FinTech Developing In-House Capabilities Partnership/Collaboration with FinTech Firms’ Activeness in Various Approaches (%), 2016 Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
  15. 15. #WFTR17 #WFTR17 Relatively Confident FinTech Strategy in Place Confidence Level of Executives About Strategy to Address the Challenges Posed By FinTechs (%), 2016 Source: Capgemini and LinkedIn WFTR Executive Survey, 2016 Medium LowConfidence Level High 13.0% 43.0% 44.0%
  16. 16. #WFTR17 #WFTR17 Significant Opportunities to Better Deliver Results Source: Capgemini and LinkedIn WFTR Executive Survey, 2016 Effectiveness of Achieving Results while Implementing FinTech Capabilities (%), 2016 Very Effective, 10.0% Moderately Effective, 82.5% Not Effective, 7.5%
  17. 17. #WFTR17 #WFTR17 Today’s Three Themes from World FinTech Report FinTech’s gaining traction and raising bar, but long way to go1 Incumbents actively addressing FinTechs with mixed results2 Leadership and culture are critical to applying innovation3
  18. 18. #WFTR17 #WFTR17 Four-Step Framework to Effectively Apply Innovation Source: Capgemini Financial Services Analysis, 2016; https://www.capgemini.com/applied-innovation-exchange/applied-innovation-exchange-framework Facilitate the discovery of emerging technologies, sector issues, and how these impact your organization Co-locate to help shape ideas and insights into business models, prototypes, and technical architectures Guide executive alignment and deployment to ensure innovation is adopted at speed and scale Help advance innovation processes, improve proficiency, and implement best practices Organizational Culture Clear Vision for Innovation Senior Leadership Buy-In and Commitment Capgemini’s AIE Framework to Apply Innovation
  19. 19. #WFTR17 #WFTR17 64.0% 50.7% 29.3% 17.3% 17.3% 17.3% 12.0% 10.7% Executive Leadership Support and Buy-In Shifting the Cultural Mind Set of the Organization Clear Strategic Vision and Plan Willingness to Take Calculated Risk Willingness to Think Outside of the Box Strategic Budget Allocation Willingness to Replace Legacy Technology Ensuring Innovation Plan and Business are in Sync Leadership and Culture Are Key Success Factors Key Success Factors on Applying Innovation (%), 2016 Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
  20. 20. #WFTR17 #WFTR17 Selecting Right Partners and Engagement Model Commitment from Leadership Protecting Customer Data Preserve Culture of FinTech Being Open to Ideas from Other Industries Creation of Sandbox Environment Source: Capgemini Financial Services Analysis, 2016 Collaboration Will Require New Ways of Working Incumbents and FinTechs – Pillars of Collaboration Strategy Pillars for Collaboration Strategy
  21. 21. #WFTR17 #WFTR17 Closing Thoughts • FinTech is clearly gaining momentum and driving change in the industry • Emerging markets, Gen Y, and affluent are earliest adopters of FinTech • We have a seen an explosion of activity by incumbents to adapt to this change • We are still in the very early stages as firms search for the right formula • Most innovation to-date focused on incremental vs. transformational change • Firms can benefit from systematic approach– Discover, Devise, Deploy, & Sustain • Bigger disruption could be on way with Blockchain, Big Tech and Platformification
  22. 22. The information contained in this presentation is proprietary. © 2017 Capgemini. All rights reserved. www.capgemini.com in collaboration with About Capgemini With more than 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Rightshore® is a trademark belonging to Capgemini www.WorldFinTechReport2017.com #WFTR17 THANK YOU!

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