The document discusses the ongoing fintech (r)evolution characterized by a collaboration between legacy financial services and fintech startups. It highlights key examples such as India's Unified Payments Interface, China's Alipay, and the European Union's PSD2 directive, emphasizing the innovation and regulatory changes shaping the industry. Best practices for digital transformation and the importance of collaboration across sectors are also outlined.

1. Elias Gagas
Chief Digital Officer
360° of
FinTech (R)evolution

2. The “Great Divide / Gap”
behind the FinTech (R)evolution

4. FinTech (R)evolution
Key Drivers

5. FinTech (R)evolution – Key DriversThe Winds of Change sweeping through Financial Services
Global Standards
Consumers
Internet Economy
Innovative Ideas

6. Global
Standards

7. Consumers

8. Internet
Economy

9. Innovative
Ideas

10. FinTech (R)evolution
The Stakeholders

11. FinTech (R)evolution – StakeholdersThe key actors / stars of this new world
Two worlds Collide
› Legacy Financial Services (e.g. Banks, Card / Payment Processors, Wealth Management etc.)
› FinTech driven Startups (e.g. NeoBanks, Alternative Payments, Aggregators etc.)
Two worlds must work together
› Legacy Financial Services follow regulations & have access to an established customer base
› FinTech driven Startups innovate without the “shackles” of regulation

12. Governments
Financial Institutions
Banks
Legacy
Technology
Financial
Messaging
VCs
Internet & Tech
Giants
Incubators
Accelerators
FinTech
Startups
FinTech
(R)evolution
The FinTech Yin Yang
Academia & Research
Regulators

13. FinTech (R)evolution
Adjoining Ecosystes

14. FinTech (R)evolution – Adjoining EcosystemsDirectly being affected by & affecting the FinTech movement
FinTech (R)evolution
(e)Commerce
Mobile
Payments
IoT
Wealth
Loans
Gaming
Insurance

15. FinTech (R)evolution
Some Examples

16. FinTech (R)evolution –Unified Payments Interface - India
› Unified Payments Interface (UPI) is a payment system launched by National Payments Corporation of India and
regulated by Reserve Bank of India which facilitates the fund transfer between two bank accounts on the mobile
platform instantly.
› National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India.
It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
› Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application
(of any participating bank), merging several banking features, seamless fund routing & merchant payments into
one hood.
› It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and
convenience. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).
› Learn more at http://www.npci.org.in/UPI_Background.aspx

17. FinTech (R)evolution –Alipay.com - China
› Alipay.com is a third-party online payment platform. It was launched in China in 2004 by Alibaba Group and its
founder Jack Ma.
› Alipay is one of China's biggest payment services and competes with Tencent's WeChat Payment. Alipay is deeply
ingrained in the lives of Chinese consumers and is used to pay for items in-store and online for goods and services
ranging from taxis to restaurants and clothing.
› Alibaba is hoping that its active Alipay users, which now total 450 million, according to the company, will continue
to use the app abroad allowing the company to take advantage of the increasing number of Chinese tourists who
are spending more.
› "The vision is targeting two billion people within next five to ten years, not only in China but other countries too,"
Sabrina Peng, president of Alipay International, told CNBC at the Money 2020 fintech conference in Copenhagen
on 2016.

18. FinTech (R)evolution – CellulantCellulant - Africa
› Cellulant has been named the ‘Best African Payments & Transfers company’ of 2016. At the African FinTech
Awards (#afta16)
› Cellulant is connected to more than 50 banks, 40 mobile operators, over 100 merchants and 200 businesses;
touching the lives of more than 40 million consumers Africa-wide.

19. FinTech (R)evolution – P2P FinancingRaboBank– Netherlands
› Rabobank offers financing to businesses through high net worth customers
› Rabobank has run a trial in which SMEs can borrow money from high net worth customers of the bank.
› This offers broader access to financing for businesses and a new investment opportunity for high net worth
customers.
› This form of ‘peer-to-peer lending’ supplements existing forms of financing such as regular bank credit and
crowdfunding.
› Rabobank is building an online platform (Rabo & Co) that brings together businesses and Private Banking
customers.
› Businesses place their financing request on the platform and Private Banking customers state which loan they
wish to co-finance. In the trial phase, Rabobank itself will provide at least 50% of every loan.

20. FinTech (R)evolution – PSD2Payment Services Directive 2 – European Union
› On November 16, 2015, the Council of the European Union passed PSD2. Member states will have two years to incorporate the
directive into their national laws and regulations. 2018 is the milestone year for PSD2 going live.
› In short, PSD2 enables bank customers, both consumers and businesses, to use third-party providers to manage their finances.
› The new rules aim to better protect consumers when they pay online, promote the development and use of innovative online
and mobile payments, and make cross-border European payment services safer.
› Banks, are obligated to provide these third-party providers access to their customers’ accounts through open APIs. This will
enable third-parties to build financial services on top of banks’ data and infrastructure.
› AISP (Account Information Service Provider) are the service providers with access to the account information of bank
customers. Such services could analyze a user’s spending behavior or aggregate a user’s account information from several banks
into one overview.
› PISP (Payment Initiation Service Provider) are the service providers initiating a payment on behalf of the user. P2P transfer and
bill payment are PISP services we are likely to see when PSD2 is implemented.
› In September 2016, Smart Money People estimated that PSD2 had placed a 4% premium on FinTech valuations.

21. The Bank of the Future is a PlatformIt’s the Everyday Bank – facilitating several customer journeys
Inter-Connected
Open
APIs
Everyday Bank
Platform
BaaS BaaP

22. A few words about
Payment Components

23. Payment ComponentsWho we are? What we do?
› Payment Components Ltd is a catalyst, empowering FinTech Innovation in Financial
Institutions, Corporates and FinTechs.
› Our mantra is “If it’s not Simple, It’s Wrong”

24. Financial Messaging
Software Libraries
(SWIFT, SEPA, ISO20022)
Payment Components360° of FinTech Solutions & Services
Corporate Treasury Management System (TMS)
API Management Platform
Financial Messaging & Payments Gateway
AVACAS
Personal Finance Manager (PFM)
Validate Parse
Build
Innovation – R&D
Partner

25. FinTech (R)evolution
Best Practices

26. Best Practices – What to DOThings to Do
Be informed – Read about it – Accept it – Embrace it – participate!
Assign clear Ownership for change initiative / Digital Transformation
Collaborate – Collaborate – Collaborate. Reach out to the other side!!!
Build a multidisciplinary think tank (with internal & external resources)
Start with properly scoped initiatives & gradually evolve – it’s a journey…

27. Best Practices – What to AVOIDThings to Avoid
!
Design change by committee BIG BANG Approach
Keep it solely as an in-house
endeavor
Treat it as yet another technology
project
View FinTech as a threat

28. Final ThoughtsEmbrace the (R)evolution & Play the Game!!!
What we’re experiencing in Financial Services
has happened before (airlines, hotels, taxis,
commerce, advertising etc.)
The technologies involved are
complex & diverse – but the rules of
the game are the same
Educate yourself & your team, acquire new
skillsets & start selecting strategic partners
Assemble the necessary pool of skillsets
(internal & external) & create the appropriate
organizational structure
It’s NOT OLD vs NEW, LEGACY vs FINTECH
but rather a collaborative next step – it’s
truly a Yin-Yang situation
Play & Enjoy the new game!

29. 64 Princes Court , 88 Brompton Road , Knightsbridge, London SW3 1ET, United Kingdom | Tel. : +44 2071172538 | www.paymentcomponents.com
Empowering FinTech Innovation!
@paymentcomp
Elias Gagas
Chief Digital Officer
elias.gagas@paymentcomponents.com