The adoption of various digital technologies by consumers to access transactions online and via smart phones, has raised expectations of the products and services they receive from financial services providers. It has transformed the way customers and financial service providers engage with each other. Benefits to providers are the ability to further understand and profile customers in much greater detail than before. New products, delivery channels, operating models and metrics can result in cost savings and revenue opportunities for the providers.

1. ACOI Presentation
The Impact of Digital Technology on Financial Services
@TSSG_WIT
@BarryMDownes
Barry Downes, CEO 25/11/2015

2. Agenda
• TSSG Introduction
• Key Technology Trends
• The Impact of Digital Technology on Financial Services
• Opportunities
• Next Steps
www.tssg.org 2

3. About me
• CEO of TSSG, an International Research Institute hosted by WIT.
• Previously, Founder of FeedHenry Ltd, a mobile cloud platform, sold to Red Hat Inc.
(NYSE: RHT) for $82 million in 2014.
• Also set-up and led TSSG’s Venturing team which has produced 14 start-ups with 3
additional launching in the next 12 months.
• Originally worked in the USA for Infinium, a leading ERP software company.
• On return to Ireland worked for AIB Bank on their Retail Banking Systems and later led the
redevelopment of their Home Mortgage System as a consultant for an AIB and IBM venture
called Resolution Technology.
• Later delivered Insurance systems for RSA in Dublin and Scottish Widows in Edinburgh as
a consultant for Phoenix Technology Group.
• Been out of Financial Services for the past few years but coming back to the community
and looking at it afresh both from the perspective of TSSG supporting the industry through
innovation projects and also that of an investor.
www.tssg.org 3

4. 4
TSSG
• International Research Institute hosted by WIT.
• Founded by Prof Willie Donnelly in 1997 and led by CEO
Barry Downes.
• Has 140+ staff and is 100% self funded.
• Expertise in key areas relevant to EI/IDA TIME cluster:
• networks,
• mobile and
• datamining and security services.
The Telecommunications Software and Systems Group (TSSG) at WIT
• Completed over 110 direct industry projects for start-ups in
Ireland over the past 3 years and has spun out a number of
leading international start-ups such as FeedHenry Ltd.
EXPERTISE
• On doing world class research and innovation -
then turning this into economic impact in the South
East and Ireland by supporting EI and IDA clients
and by creating and supporting start-ups.
FOCUS
IMPACT

5. 26-Nov-15
Innovation Model

6. Research Units
www.tssg.org 6

7. Networks Mobile
Communications
Services
TSSG Core Focus Areas
Network Virtualization
Software Defined Networking
(SN) & Software Platform &
Infrastructure as a Service
Mobile Cloud Platforms
(PaaS) and advanced mobile
applications
Communication Services
Platforms (PaaS) and
applications e.g. Web RTC

8. TSSG Core Focus Areas
Architecting and Engineering
advanced services in mobile,
IoT and security.
VR/AR Communications, 3D
User Interfaces, Education,
Simulation and enabling
hardware
Predictive Analytics
Social Network Analysis
Data Security and Privacy
Services
Engineering
Virtual and
Augmented Reality
Data Mining and
Security

9. Drivers of
Innovation in Financial Services

10. ICT Drivers
• Cloud Computing
• Mobile Technology
• Micro-services Architectures
• Big Data
• IoT
• Security
• BitCoin and BlockChain

11. From Systems of Record
www.tssg.org 11
TRANSACTIONAL
Source: RedHat

12. To Systems of Engagement
www.tssg.org 12Source: RedHat

13. It’s a Changing World
www.tssg.org 13Source: RedHat

14. Emergence of bimodal or 2 Track IT
www.tssg.org 14Source: RedHat

15. Mobile is the catalyst –
Node.js is the tool
www.tssg.org 15
1)Benedict Evans, Mobile is Eating the World(October 2014) http://benBevans.com/benedictevans/2014/10/28/presentaion-mobile-is-eating-the-world
2)IDC Reveals Worldwide Mobile Enterprise Applications and Solutions Predictions for2015. http://www.idc.com/getdoc.jsp?containerId=prUS25350514
Source: RedHat

16. Micro-services Architecture
www.tssg.org 16
Cloud, API, Modular, Scalable – ideal for the Payment Services Directive
Source: Pivotal
API

17. PSD2
• As a result of new EU rules – PSD2
• Third Parties will soon have direct access to bank accounts and
• Will be permitted to initiate payment orders on these accounts on
behalf of account holders.
• This potentially puts distance between you and the account holder
and could deprive you of access to valuable transaction data.
• And you will need to provide an API to these Third Parties.

18. Data is at the Core
www.tssg.org 18

19. TSSG Data Lifecycle
www.tssg.org 19
End to End unified
Communications
Sensor
Networks
Wireless
access
Networks
Network
optimisation
RDBMS
NoSQL
Graph
Data Storage
Semantic
Analysis Sentiment
Analysis
Context
Enrichment
Location
Based
Data
Enrichment
Distributed Non-
Distributed
Predictive
Analytics
Social
Network
Analytics Decision
Support
Data
Analysis
Context
Awareness
Recommendation
Prediction
Trending
Data
Services
Privacy Trust
Security
Infrastructure
Test-beds

20. Example - TSSG Ceartas Project
• Using Social Network Analysis in the Criminal
Intelligence Domain
– Internal Intelligence
• Land Registry
• Ports Authority
• Revenue
• Court Transcripts
– Open Source Intelligence (OSINT)
• Newspapers
• Internet Forums
• Social Networking Websites
• Uncover people and relationships previously unknown
to the authorities.
• S.N.A. techniques to discover social patterns in criminal
organisations.
www.tssg.org 20

21. TSSG WIZEONI Project
• Problem
– IoT contributing to digital management
headaches for individuals: touch point
fragmentation, privacy concerns
– Privacy & Security are increasingly under
scrutiny and are acting as inhibitors to
enterprise adoption of IoT
• Solution
– To develop a commercially viable Data
Platform as a Service (DPAAS) to address
problems of the IoT industry.
• Impact
– Created a DPAAS solution that allows
enterprises to deliver meaningful IoT services
in a privacy preserving, scalable manner .
26/11/2015 www.tssg.org 21

22. Driving Digital Transformation
www.tssg.org 22Source: RedHat

23. But don’t forget Security
www.tssg.org 23Source: KPCB

24. But don’t forget Security
www.tssg.org 24Source: KPCB

25. TSSG EU Programme IPACSO
www.tssg.org 25http://ipacso.eu/

26. Software is Eating the World
www.tssg.org 26

27. And Mobile is going to be key -
here is why …
www.tssg.org 27
Millennial Smartphone Behavior, USA, 2014
Source: KPCB

28. Mobile Users 1995 -> 2014
www.tssg.org 28

29. How Software is Eating the World
www.tssg.org 29

30. Tweet from Aaron Levie - Box
www.tssg.org 30

31. Example – Offline Payments
www.tssg.org 31

32. Example – Online Payments
www.tssg.org 32

33. Impact on Financial Services

34. Let’s look at this from an Open
Innovation Perspective
www.tssg.org 34Source: Henry Chesbrough

35. Where is FinTech Innovation
happening?
www.tssg.org 35

36. Fintech Start-up Sector Map
www.tssg.org 36
Consumer
Banking (44)
Financial
Research (40)
Banking
Infrastructure (74)
Institutional Investments (70 Companies)
Business
Tools (88)
Crowd-
funding (55)
FinTech
Contact
info@venturescanner.com
to see all 1233 companies
Security, Auth,
Fraud (59)
Retail Investments (102 Companies)
Lending (297 Companies) Personal Finance
(139 Companies)
FinTech
Investors (35)
Payments (303 Companies) Equity Financing
(125 Companies)
Remittances
(46 Companies)

37. FinTech Funding last 5 Years
www.tssg.org 37
Source: CBInsights

38. www.tssg.org 38
Top UK Start-ups 2014

39. No of Companies by Category
www.tssg.org 39

40. FinTech start-up Maturity
www.tssg.org 40

41. No of Investments by Top FinTech
Investors
www.tssg.org 41

42. FinTech Unicorns
www.tssg.org 42

43. Insurance Sector Map
www.tssg.org 43

44. Which Sectors are seeing the most
innovation?
www.tssg.org 44

45. BitCoin and BlockChain

46. What is BitCoin and BlockChain
• Video
• https://www.youtube.com/watch?v=YIVAluSL9SU
www.tssg.org 46

47. BitCoin Sector Map
www.tssg.org 47

48. Where is BitCoin Innovation
Happening?
www.tssg.org 48

49. Innovation
www.tssg.org 49

50. Adoption by Banks
www.tssg.org 50

51. Opportunities and Next Steps

52. Summary
• Significant forces driving change – cloud, mobile, big data,
blockchain.
• Significant innovation occurring in the FinTech start-up sector
outside of Ireland that may not be that easy to see right now but
which will have a big impact on business in the future.
• Significant challenges – Security, existing systems, regulation.
• Important new EU rules – PSD2
• = Major threats.

53. A motivating Example
www.tssg.org 53

54. Let’s look at this from an Open
Innovation Perspective
www.tssg.org 54Source: Henry Chesbrough

55. Some Options
www.tssg.org 55Source: Avinash Swamy

56. Some Questions for You - Mobile
• Do you have a Head of Mobile and do you already have apps
deployed for your customers?
• If so how do they compare in usability and engagement to the
apps customers use everyday?
• Can your customers make P2P Payments, regular transfers
and pay bills from their mobile today?
• Can you approve a personal loan for an existing customer
with a salaried account in real time, instantly on mobile?
www.tssg.org 56

57. Other Questions
• Do you have a Venture fund that invests in FinTech inside and outside of
Ireland?
• Do you have a skunk-works team that can create new and related FinTech start-
ups that can do things the existing business might find hard to do?
• Do you have a FinTech Incubator that attracts start-ups to co-locate with your
organisation?
• Have you put a team in place to make your organisation easier to partner with
for start-ups?
• Do you have a team in place that is analyzing how your organisation can
compete with the Unicorns when they eventually do enter the Irish market?
www.tssg.org 57

58. Working with TSSG

59. Thank You
Questions?

60. www.tssg.org 60
Barry Downes, CEO
barrydownes
@barrymdownes
BarryMDownes
bdownes@tssg.org
+353 51 302932
+353 87 9075535