An invited talk for a major local banking group. Review of fintech domain and solutions as at July 2018 and suggestions for regional roadmaps.

1. Tehnologije ličnih finansija
Dr Drago Indjic
dindjic@london.edu
drago.indjic@oxquant.com
13 VII 2018, Beograd

2. Sadržaj
• Leto 2018
– Ključni trendovi
– Tri (iseljenička) ekosistema
– Potrošačke usluge
– Poslovni modeli
– Fondovska industrija i digitalna rešenja
• Potencijal za tehnološki transfer
– nova ponuda, keš - fondovi

3. Krediti
• Zahvalnica
• 1981 OIA, 1987 Petnica, brojne kolege i prijatelji
• Karijera
• Dipl. Ing. ETF (1990), PhD Imperial (1995), 2 x radna
viza: ekonometrija, SWF, IMC (1999), fond, family office,
akademija LBS, nekoliko startup fondova i fintech-a.
• 1997 EkoInst, 2005 IMQF, 2007 Belex
• Kvalifikacije
• FCA (2001-2017) CF1, 4, 10; Richfox Capital AIF (NL)
• EU H2020 SME Instrument: fintech, machine learning

4. Summer ‘18
• Key trends
• Disruption, innovation …
• monetisation
• Timing/Gartner cycle: seed -> PoV/MVP -> RoI
• „on demand“ vs „destination“ banking
• London Briefings
• E&Y: Anthony Kirby, Head, Wealth Asset Mngt
• CapGemini: Cliff Evans, Head, Digital for Banking
• FintechCircle: Susanne Chishti, CEO
• and others like Watson: Paolo Sironi

5. (Fin)tech za omladinu
• Domaće tržište
– https://startit.rs/vece-finansijskih-inovacija-sta-se-sve-pravi-u-
srbiji-u-ovom-domenu/
– http://sbi.rs/
• Inostrani trendovi
– #openbanking
– #p2p
– #voicefirst
– #roboadvisor

6. Potrošačke usluge
• Plaćanja i kartični promet
• Doznake, EMI, procesori (Manigo) ...
• Štedne zadruge
• P2Plending vs Alipay Ant cash fond ($270b)
• Investiranje
• Roboadvisors
• Ostalo
• Nekretnine, osiguranje, krediti, penzije, poslovno
bankarstvo

7. Ekosistem (1): Kanada
– http://fintechnews.ch/fintech/fintech-canada-report/19783/

8. Ekosistem (2): Švajcarska
• .

9. Ekosistem (3): V. Britanija (i)
• FCA: Dinamični regulator fin. tržišta
– Autonomna agencija u otvorenom dijalogu
– Mandat tržišne konkurencije (kulturna tradicija)
– Aukcija (tender) za dugoročne energetske kapacitete
– Postojano unapređenje (pročišćavanje) sistema
• Ovlašćena fizička i pravna lica – javni registar
• Zaštita malih potrošača
• Redovne “prozivke”, analize, studije, “value for money”
• promene propisa (“RDR”)

10. V. Britanija (ii)
• Amazon
– UK banking license. Zero IT cost. Owns clients.
• 150 yrs “high street banking”→ Metro (2010)
• Dec 2017: PBT £20.8m (-£11.7m). Revenues +51%
(£293.8m), loans +64% (£9.6bn), deposits +47%
(£11.7bn), 1.2m a/c, 17% SME CA switchers
• 250 yrs “clearing bank” → Clear.Bank (2017)
• https://www.gov.uk/government/organisation
s/innovate-uk

11. Primeri „challengers“
• TransferWise
• Od doznaka do IBAN (osnivači ex Skype)
• Veliki broj rešenja za mala preduzeća i preduzetnike
• P2P, P2B pozajmice: alternativno finansiranje
• £10m (2010) -> £170m (2017)
• B2B fintech
• Bankable, BaaS - no “core system”
• Calastone, international funds
• Security, identity management …

12. Biznis modeli
• 2018 - Profitabilnost?
– Problem malih bilansa
• Praktično svi „robo“ app su subvencionisani!
– „obrt“ (churn) klijenata
• (-) „Disruption“ rizik ...
• (++) Postojeća baza klijenata: CAC KPI
• Management inovacija
– Hackatlon itd … strategija, npr. dugoročna štednja

13. Market for Asset Management
• Demand
– Retail vs institutional
– Capital (wealth) formation
– Delegated2 (= “sub-optimal contract”, “skill2”)
• Distribution: B2B2C vs D2C
– Information cost: 3 universes x 5-10k+ products
– Cost of customer acquisition/switching
• Supply
– Investment products (one-off) or solutions/services (lifetime)
– Margins; direct fees racing to zero; pricing „active”, “skill“

14. Distribucija fondova
• .

15. Digital Investment Advisors
• Fully digital ↔ hybrid ↔ Advisory
– D2C, B2B, B2B2C: 200+ US; 100+ UK; 30+ EU …
– https://etfmatic.com/

16. Implementation
• Suitability
• Risk rated product: profiling
– complexity = product liability
• Massive personalisation
• Implementation: bootstrap by €20 pm
• Personal advice vs guidance (segmentation)
• Quality: conflicted? Delegated (!) Costly
• Financial planning goals over stream of life events
• Deliver investment experience (engagement, fun)

17. #Srbija
• “Frontier” market
• Web 3.0 E-bank: slike 4, 7, 58; data science @ arhiva
• Opportunity
• Deposits → wealth; zakonska regulativa (RSD base
currency, Made in Serbia assets)
• Tech
• Reference implementation, licensing
• https://maxmywealth.com/
• Minimal tech risk: AWS, CX “skin”, API

18. Market/Product Fit
• Serbia
• CPI = 3.2%, Base = 3.5%, Deposit = 4%, T10yr = 4.15%
• Fondex = 4.9% (vs Belex 15 w div?)
• EUR 208m (12 funds); EUR 30m pa inflows
• 43 IFAs
• Project costing
• Well below EUR 1m. Breakeven AUM, pricing policy ...
• Future proofing: owning clients
• Customer (and their family) risk profiles, mortgages etc

19. Penziona štednja
• „Drugi“ i „treći“ stub
• Hrvatska uvela 2i pre V. Britanije (2011) (a HK još nema)
– https://europa.eu/youreurope/citizens/work/retire-
abroad/state-pensions-abroad/index_hr.htm
– https://www.nestpensions.org.uk/
• Težak problem modernog društva
• Političke ekonomije
• Rizik prenesen na pojedince
– „Bulk annuity“

20. Perspektive obima i troškova
• Domaća ili inostrana
– fondovska rešenja? berzanski materijal?
– Tehnologija? Ekspertiza?

21. Short Bibliography
• @dindjic
• https://vimeo.com/204023046
• https://youtu.be/BvynzSSY-A0
– video (after 35’), London, July 2016
• https://www.slideshare.net/dindjic/