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Current FinTech Trends in Retail Lending

FinTech is gathering pace, with close to a whopping $40 billion in global investment to date - yet keeping up with the changing landscape can prove tough. To keep you ‘in the know’ we’ve produced a handy resource that provides a topline overview of the sector, key industry developments, a selection of must read articles, and tips on how to get involved!

Current FinTech Trends in Retail Lending

  1. 1. FinTech Trends in Retail Lending
  2. 2. • Tour of the FinTech Landscape • Industry Developments • “Go To” News Sources Topics
  3. 3. Tour of the FinTech Landscape
  4. 4. FinTech in Numbers “The number of fintech startups is difficult to pinpoint, but data sources and industry watchers estimate that Asia has approximately 2,500 fintech startups while the U.K. and the U.S. have a combined total of 4,000” - Falguni Desai, Forbes Asia “Based on assumptions and studies, the figures this year look like they’re heading near $30bn invested in fintech” – Chris Skinner, BankNXT Last year Anthony Jenkins (Former CEO of Barclays) shared a stark vision for the banking world, predicting that over the next 10 years new technology, and a new wave of fintech startups, will disrupt the sector to such an extent that branches and headcount could decline by as much as 50%. 2,500 30bn 50% Banking is necessary, banks are not.” – Bill Gates
  5. 5. https://www.cbinsights.com/blog/disrupting-european-banking-fintech-startups/ Unbundling of a European Bank
  6. 6. https://medium.com/@VentureScanner/the-state-of-financial-technology-in-15-visuals-b7cbea4b2b2a
  7. 7. Company Count by FinTech Category
  8. 8. Regulators Banks Bank VC Entities Innovation Accelerators and Incubators Venture Capital & Private Equity FinTech Startups: Disruptors Mentors FinTech Startups: Enablers Bank Supported Accelerators Industry Bodies (e.g., Singapore FinTech Consortium) Media Angel Investors & Groups Industry Players & Stakeholders
  9. 9. Example disruption models Outsider Unseats incumbent Example: Lending Club Venture backed Launch Competing product Compete with bank FinTech Startup With lower cost and efficiency Enabler: e.g., Omise or Acquisition: e.g., Simple Join Bank Mentors Bank Test and Feedback FinTech Startup Accelerator & Get Funding Bank Integrates or purchases
  10. 10. Industry Developments
  11. 11. FinTech to Date • Strengths include better use of data and frictionless customer experience Impact mainly limited to e-wallets and P2P lending Current Conditions for Change • Policy shifts towards Open Data & APIs • Enhanced technologies (Cloud Computing) • Changing Customer Dynamics • Cost pressure for banks Areas to Watch: • Applications for Internet of Things • Smart Data • Distributed Ledger • Frictionless process and products Past, present and future 1http://www.oliverwyman.com/content/dam/oliver-wyman/global/en/2015/jun/The_Fintech_2_0_Paper_Final_PV.pdf
  12. 12. The Traditional Universal Banking Model 1http://katecarruthers.com/2013/11/future-of-banking/ Customer Front office (distribution) Back office (manufacturing) Market (processing) Infrastructure
  13. 13. “Breaking Banks” – The Great Unbundling 1http://katecarruthers.com/2013/11/future-of-banking/ Customer Front office (distribution) Back office (manufacturing) Market (processing) Infrastructure
  14. 14. Enter the ‘real’ challengers? Non-traditional competitors are emerging and they are bypassing traditional banking systems NEW ENTRANTS
  15. 15. “Go To” News Sources
  16. 16. Five key trends fuelling FinTech in Asia: Digital Reality http://www.mis-asia.com/tech/industries/five-key-trends-fuelling- fintech-in-asia-digital-realty/ Examining the Top 4 FinTech Predictions for this Year an Beyond http://techcrunch.com/2016/02/25/examining-the-top-4-fintech- predictions-for-this-year-and-beyond/ Global Regulators Now Eyeing FinTech http://fortune.com/2016/02/27/global-fintech-regulation/ The Never-Ending Story: Europe’s Banks Face a Frightening Future http://www.bloomberg.com/news/features/2016-02-16/european-bank- nightmare-far-from-over-as-fines-and-fintech-loom
  17. 17. Socialize and Mentor! SOCIALIZE: Join FinTech and related Tech innovation social mixers. Search for “FinTech”, “Innovation”, etc in: • http://www.meetup.com/ • https://www.eventbrite.com/ MENTOR: • Startupfintech Bootcamp • FinTech SuperCharger • Founder Institute INDUSTRY EVENTS: - https://www.fintechweekly.com/fintech-conferences
  18. 18. Read and Listen! NEWS: – http://www.fintechstreet.com/ – FINTECHNA: http://news.fintechna.com/ – FinTech Finance: http://eepurl.com/bWltz1 – https://twitter.com/ #FinTech – http://dailyfintech.com/ – https://nextbank.org/blog/ – https://www.cryptocoinsnews.com/ – https://medium.com/@BankersLab PODCASTS: http://fintechnews.ch/2070/fintech/best-fintech-podcasts/ BOOKS: http://fintechnews.sg/1023/fintech/the-10-best- fintech-books-to-have-in-your-library-top-fintech-books/
  19. 19. Points to Remember • DISRUPTOR OR ENABLER? FinTech innovations are typically a ‘disruptor’ or an ‘enabler’ to your business. Enablers may be platforms, processes or new products which can help you grow revenue or reduce cost. Disruptors may emerge as direct competitors. • CULTURE IS JOB ONE. Encourage your team to keep an eye on new developments and find ways to test new innovations. • GET INVOLVED. The FinTech industry wants to work with you. Participate in Industry forums, accelerators, mentorships, etc. You’ll be able to emerge as a thought leader in your country and stay in front of the trends.
  20. 20. Thank you for viewing!

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