Finance is seen as one of the industries most vulnerable to disruption by software because financial services are made of information rather than concrete goods. Fintechs and banks have competed with each other for loads of money (a.k.a. financing, revenues and market share) and customer attention (a.k.a. money and data) and everyone wants a piece of the pie. A win-win situation can be reached only when you make love, not war.

1. Fintechs + Banks =
Modex Talks, May 22nd 2019

2. Presentation
Summary
1. The fintech player
2. The traditional financial institution player
3. Competitive advantages
4. Collaboration impediments
5. Where is the love?

3. Who am I?
Laura MANESCU
Head of Business
13 years experience in
financial software
development
Head of Moneymailme since
January 2019

4. Major player for financial services:
The Fintech
F
… Fintech
A challenger that provides a software
product and promises changes in the way
people consume financial services
1st
1st Fintech Ever?
Still unknown...

5. Major player for financial services:
The Fintech
Fintech Adoption Index, Ernst & Young, 2017
F
Fintech Adoption
Driver?
Money Transfer and Payments
● Digital Only Banks
● Mobile Phone Payments
● Financial Planning

6. Why the rise in Fintech adoption?
Fintech users want to manage their finances on the go via mobile
Fintech Adoption Index, Ernst & Young, 2017

7. Major player for financial services:
The Bank
B
… Traditional Financial Institution
An economic agent which has as main activity
attracting deposits and giving loans (while also
facilitating payments and currency exchange) and
which respond to a central (national) governing bank
1st
1st Bank Ever?

8. Emerging technologies that significantly
impact the customer journey?
Infrastructural
enablers
Operational
Excellence
Front-end
Interface
Data-focused
technologies

9. What is the competitive
advantage for each side?
Traditional
Financial
Institutions
Fintechs
Risk management
Infrastructure
Regulations
Customer trust
Brand name
Capital
Agility
Innovation
Cost reduction
Customer experience
Data handling

10. The fintech side: Why would a fintech want
to partner with a traditional financial
institution?
World Fintech Report, Capgemini, 2018

11. The fintech side: Challenges while looking
for the perfect partner?
World Fintech Report, Capgemini, 2018

12. The fintech side: preferred engagement
models
World Fintech Report, Capgemini, 2018

13. The bank side: where is the pressure?
World Fintech Report, Capgemini, 2018

14. The bank side: how willing are banks to
collaborate?
Technology Trends in Retail Banking, Capgemini, 2018

15. The bank side: 4 key questions to ask when
looking for the right partner
People
Are there the right
people in the right
seat?
Finance
Will the fintech still
be in operation in 12
months?
Business
Does the fintech
show early traction
and sign of success?
Technology
Is the technical
solution built to last
and scale?
A.k.a.: What do I need to think of as a fintech when my primary business objective
is collaboration?

16. So... where is the love?
What = both sides have well-defined common objectives and a
common vision
Where = accelerators, incubators and hackathons
How = collaboration is a long-term relationship, so both sides need to
understand the challenges, focus on innovation and agility and
mitigate risks
“Fintechs are no longer going to disrupt the banks, they are going to power the banks.”
(Fintech Collaboration, Deloitte, 2018)

17. Collaboration models
Channel
The bank helps the
fintech sell its
product to the
bank’s customers
Bank advantage:
offering a new product /
service, testing the
customer to see what to
do next
Fintech advantage:
revenue stream, brand
association
Supplier
The bank engages
with the fintech as if
it were a supplier
(the customer thinks
the bank is making
the offer)
Bank advantage:
good way to explore
new propositions
Fintech advantage:
paid service
Satellite
The bank acquires
the fintech, but
leaves it relatively
independent
Bank advantage:
exclusivity and control
Fintech advantage:
injection of capital,
access to bank’s
customers, validation of
the business model
Merger
The bank acquires
the fintech, and
integrates and
rebrands it
Bank advantage:
innovation under own
brand
Fintech advantage:
capital flow, validation
of the business model

18. Thank You

19. modex.tech.team modex.technologies
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