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The next 10 years in FinTech by Philippe Gelis from Kantox

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We're thrilled to welcome a very special guest:
Philippe Gelis, cofounder & CEO at Kantox!

We hear a lot of talk about the future of Fintech, and who better to give his take on the subject than the cofounder & CEO of one of its top performers?

You've probably heard about Kantox, the P2P currency exchange platform with 1600 clients in over 20 geographic locations. This startup focuses on SMEs and mid-cap companies, providing them with a solution that has historically only been available to the largest of organizations.

Kantox announced last September that they had reached over $2 billion in total transactions on the platform. With their $11 M Series B round raised last May, we can say things are looking pretty good for Kantox ;)

Philippe cofounded Kantox, one of the first Fintech startups, back in 2011. He began his career working for Renault Suisse as a financial controller. He then gained invaluable experience in the banking industry as a consultant. Before founding Kantox, he was strategy & management consultant at Deloitte. He is specialized in corporate finance and business strategy.

In this 45 min. talks on the future of Fintech, Philippe gives his analysis of the current state of the industry and the major trends to follow during the next 10 years.

LOVE,

TheFamily Team

Published in: Business

The next 10 years in FinTech by Philippe Gelis from Kantox

  1. 1. THE NEXT 10 YEARS IN FINTECH SPECIAL EVENT WITH KANTOX #TFSPECIAL
  2. 2. TheFamily 
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  3. 3. Texte du titre Texte niveau 1 Texte niveau 2 Texte niveau 3 Texte niveau 4 Texte niveau 5 DISAGREE ON TWITTER! #LOVESAAS
  4. 4. PHILIPPE GELIS CEO & CO-FOUNDER AT KANTOX @PGELIS #TFSPECIAL THE FUTURE OF FINTECH: TRENDS TO WATCH FOR THE NEXT 10 YEARS
  5. 5. Copyright © 2016 Kantox The next 10 years in Fintech ! ! London, 2016
  6. 6. Copyright © 2016 Kantox 1.  The Fintech tsunami 2.  Fintech banks 3.  What banks can do to adapt and survive 4.  A co-petitive eco-system starts emerging Index
  7. 7. Copyright © 2016 Kantox The Fintech tsunami Finance, one of the largest industries ever disrupted
  8. 8. Copyright © 2016 Kantox The Fintech tsunami An industry with many pain points Opacity! ! Overpricing! ! Unfair!behaviours!/!products! ! Bad!user!experience! ! Systemic!risk! ! “Too!big!to!fail!/!jail”!
  9. 9. Copyright © 2016 Kantox The Fintech tsunami Massive Fintech investments globally to disrupt the industry
  10. 10. Copyright © 2016 Kantox The Fintech tsunami Fintech attacking verticals on UX, prices, transparency…!
  11. 11. Copyright © 2016 Kantox The Fintech tsunami … and efficiency!
  12. 12. Copyright © 2016 Kantox The Fintech tsunami Fintech would reduce banks revenues and profits by up to 40% and 60% over the next decade ! McKinsey)
  13. 13. Copyright © 2016 Kantox The Fintech tsunami Success stories…!
  14. 14. Copyright © 2016 Kantox The Fintech tsunami … unicorns …!
  15. 15. Copyright © 2016 Kantox The Fintech tsunami … and bubble!
  16. 16. Copyright © 2016 Kantox The Fintech tsunami London, the US (and China) leadership!
  17. 17. Copyright © 2016 Kantox Fintech banks Fintech banks: build from scratch, no legacy, no branches, mobile 1st, with(out) banking licence
  18. 18. Copyright © 2016 Kantox Fintech banks Branchless banking is gaining acceptance
  19. 19. Copyright © 2016 Kantox Fintech banks Fintech banks are now “low-cost to build… but high quality”
  20. 20. Copyright © 2016 Kantox Fintech banks Marketplace banking: core banking platform + API layer + CRM + KYC + Banking License
  21. 21. Copyright © 2016 Kantox Fintech banks GAFAs will not become banks … but banks may become slaves of GAFAs! •  Not!profitable!enough!(negaDve!impact!on!market!cap)! •  Too!regulated! •  “Slow”!growth! What%banks%fear%most% are%GAFAs%owning%the% customer%rela8onship% and%them%becoming% the%mere%white%labels% at%the%back%end%of%the% process%
  22. 22. Copyright © 2016 Kantox Fintech banks Uber is now the largest acquirer of small business bank accounts in the US today •  30%!of!Uber!drivers!in!the!US!have!never!had!a!bank!account ! •  To!be!a!driver!on!Uber,!they!need!a!minimum!of!a!debit!card!to!get! paid! •  Uber!has!had!to!solve!this!problem!by!allowing!drivers!to!sign!up! for!a!bank!account!as!part!of!the!Uber!driver!applicaDon!process,!in! realLDme! ! The%next%obvious%move%is%to%design%day?to?day%banking%into%Uber’s%app% (including%financing%cars,%leasing,%insurance…)%
  23. 23. Copyright © 2016 Kantox Fintech banks Banks are frightened by GAFAs financial power and brand image
  24. 24. Copyright © 2016 Kantox What banks can do to adapt and survive Do not be in denial… «%Hundredths%of%start?ups%with%a%lot%of%brains%and% money%working%on%various%alterna8ves%to% tradi8onal%banking.%They%are%very%good%at%reducing% pain%points.%We%are%completely%comfortable%with% partnering%where%it%makes%sense%»% % Jamie!Dimon,!CEO!at!JP!Morgan!Chase! “Uber%moment%that%could%reduce%headcounts%by%up% to%50%”% % «11%big%banks%have%cut%a%combined%10%%of%their% staff%in%2015»% % Anthony!Jenkins,!former!CEO!at!Barclays!
  25. 25. Copyright © 2016 Kantox What banks can do to adapt and survive Understand “cosmetic” is not enough: VC funds, hackathons, incubators…! ! !
  26. 26. Copyright © 2016 Kantox What banks can do to adapt and survive Go digital and be prepared to close 80% of branches “We%don’t%know%how%to% grow%without%branches…% But,%we%have%taken%the% total%square%footage%of%the% bank%from%117%million%in% January%2009%to%92%million% in%2015,%and%we’re% con8nuing%to%go%down% % John!Stumpf,!CEO!at!Wells! Fargo!
  27. 27. Copyright © 2016 Kantox What banks can do to adapt and survive Solve the Millenials challenge
  28. 28. Copyright © 2016 Kantox What banks can do to adapt and survive Build a culture based on customer needs and innovation… not on risk aversion "Opera8onal%risk%is% culturally%unacceptable% for%us.%It%is%not%a%ma[er% of%how%much%you%may% lose,%it%is%a%ma[er%of% DNA.%Losing%one%euro% because%you%failed%on% managing%opera8onal% risk%may%f**k%your% career%in%the%bank”% % Chief!innovaDon!officer! at!a!large!European! bank! “Most%banks%are%built% on%systems%and% programmed%with% languages%that%pre?date% the%birth%of%the%Internet,% let%alone%the%birth%of% mobile%banking% (Cobol…),%crea8ng%in% some%cases%massive% outages%that%may%last% several%days”% % Source:!Telegraph! ! “Many%banks%outsource% their%online%banking% plaborms%to%socware% companies%to%avoid%the% risk%of%building%new% plaborms%from%scratch.% They%end%up%with%non% differen8ated%plaborms% with%an%average%user% experience”% %
  29. 29. Copyright © 2016 Kantox What banks can do to adapt and survive Do not be focused on short term profits and market cap •  Purpose!of!banks!CEO:!increasing!/!maintaining!the!market!capitalisaDon!to! get!juicy!bonuses!and!strengthen!reputaDon! •  The!long!run!is!not!important!because!they!will!have!leR!! •  Find!a!balance!between!fintech!“challengers”,!which!are!quickly!eroding!your! revenue,!and!fintech!“enablers”,!to!create!new!revenue!streams! •  The!main!challenge!is!that!"challengers"!are!far!ahead!"enablers"!regarding! size!and!growth!and!so!the!arbitrage!between!both!is!tough! Understand%that%you%can%not%bridge%the%gap%and%that%more%collabora8on% with%"challengers"%is%the%only%way%to%prepare%the%future%
  30. 30. Copyright © 2016 Kantox What banks can do to adapt and survive Leverage big data to sell more and push credit •  Data!analyDcs:!analyse!customers’!life!and!take!advantage!of!it!to!sell!more! products!according!to!record!of!purchases.! •  Credit:!provide!instant!credit!faciliDes!for!that!purchases.! Big%data%is%an%opportunity%for%banks%to%turn%into%a%gigan8c%portal%of%online% shopping% % When%buying%is%a%ma[er%of%a%simple%click%and%can%be%financed%with%instant% credit,%compulsive%buying%and%over?consump8on%become%non?stop%money? making%machines%for%banks%
  31. 31. Copyright © 2016 Kantox A co-petitive eco-system starts emerging Build true partnerships: lending on marketplaces, integration, whitelabels…
  32. 32. Copyright © 2016 Kantox A co-petitive eco-system starts emerging Acquire what you can not build, particularly if you are a small or medium bank! 1. Low!cannibalizaDon! 2. Access!to!generaDon!X!/!Y! 3. CuangLedge!technology! ! 4. OpportuniDes!to!outcompete!large!banks! ! 5. InternaDonal!expansion!at!low!cost! 6. Big!returns! Examples:!BBVA!(Simple,!Atom),!Arkea!(Leetchi)!
  33. 33. Headquarters 6 Bevis Marks London EC3A 7BA UK (+44) 20 3608 6984 Barcelona Office Torre Mapfre, Planta 10 Marina, 16-18 08005 Barcelona Spain (+34) 935 679 834 Kantox Ltd is authorised in the United Kingdom by: The Financial Conduct Authority (FCA) as a Payments Institution, under the Payment Services Regulations 2009. (REF: 580343). HMRC as a Money Service Business (REF: 12641987). Information Commissioners Office for applicable data protection laws (REF: PZ2909796). kantox.com Copyright © 2014 Kantox
  34. 34. LET’S GRAB A COCKTAIL! 
 LOVE. THEFAMILY.CO
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