The document discusses the disruption in the financial services sector due to fintech innovations and automation, highlighting the challenges faced by traditional asset managers from emerging companies and digital platforms. It emphasizes the need for established firms to adapt by leveraging digital technologies, simplifying processes, and potentially pursuing acquisitions to stay competitive. The changing landscape is also marked by significant investment in fintech and the rise of robots in advising roles, posing risks to jobs and presenting opportunities for new kinds of employment.

1. Meeting the Fintech Challenge
Asset Managers Breakfast Briefing
4 June 2015

2. 2
Work &
Technology
Disruption

3. 3
Rise of the Robot
BBC News
http://goo.gl/s5h7JB

4. 4
Rise of the Robot
Huffington Post
http://goo.gl/OAP2oA
$16bn
in Assets from Robot
Advisors like Betterment,
Wealthfront, LearnVest

5. 5
47%
jobs at risk
over perhaps
a decade or two
Frey and Osborne, 2013

6. 6
New Jobs
10 Jobs that didn’t exist 10 years ago

7. 7
New Jobs
Mandel & Liebenau, London: Digital City on the Rise
http://goo.gl/a1gzVm
44,000
working in
Fintech in
London

8. 8
CB Insights
https://goo.gl/Ce9Z3I

9. 9
Business
Disruption

10. 10
Regulation
While financial services was once dominated by
several large banks that maintained a stranglehold
over consumers' options, the sector is now seeing
enormous growth in online lending with many
small and agile financial technology companies
establishing themselves as serious competitors.
“
CNBC
http://goo.gl/kp0qee
promoting change

11. 11
Regulation
When this happened to airlines:
50%cost decrease in air fares
promoting change
CNBC
http://goo.gl/kp0qee

12. 12
Plus Success is
Less Permanent
75
15
5
Average number of years a company spends in the
S&P500 index
1937 2011 2025
KPMG Projection
KPMG Global Megatrends

13. 13
Plus Customers
Less Tolerant
Santander
8-10 days to deliver a
replacement card
Frustrated Customer
3 days to cross-stitch and
post ‘card’ to Santander
BBC News
http://goo.gl/c14GZJ
CNBC
http://goo.gl/kp0qee

14. 14
So Lots of New Competition
fintechinnovators.com

15. 15
New competition with backing
$20bnVC investment in
Fintech in 2015
Huffington Post
http://goo.gl/TX0JYy
$1bn in UK and Ireland alone in 2014
Accenture, cited by CNBC
http://goo.gl/WbgGIW

16. 16
Fighting Back
You can respond with various
business tactics and by
deciding to exploit digital

17. 17
Exploit Digital
World-wide
(A struggle with national regulation)
Disintermediation
Cut out the middle man (or robotise them)
Consolidation
Acquire and integrate
the condensed version!

18. 18
Exploit Digital
Free (or nearly free)
What real value do you offer, what can be free?
Me-wide
How can you be customer-centric, not product-centric?
Holding on to Weak Links
Why is personal finance “personal” – couples, families?
the condensed version!

19. 19
Exploit Digital
Creation
Do you do the best?
Curation
Do you bring the best together?
Aggregation
Do you bring everything together?
the condensed version!

20. 20
Exploit Digital
Rich Niches
Dominate niches with targeted offerings
Quantified Self – Phygital
Your “Money Beat”, moment by moment
Experience-led
It’s not a product/service, its about prosperity
(sorry)
the condensed version!

21. 21
5 Lock-ins
Usability – one click
Eco-system – everything works together
Subscription – free(ish) entry, paid continuation
History – keep all the records and contacts
Network effect – everyone else is here

22. 22
Incubate
(integration challenge)
“Unicorn Club” $1bn valuation
Lending Club, Square, Credit Karma, Stripe, RenRenDai
$100m Investor Club
Sberbank, BBVA, Santander, HSBC
BizJournals
http://goo.gl/dvyqoF
Informilo
http://goo.gl/kCB7ty

23. 23
Acquire
(integration challenge)
Activity in Mergers and Acquisitions
Sponsored Lists like FinTech50
Events like Fintech Innovation Lab is
an accelerator programme to introduce
Fintech to large financial services, by
Accenture
CNBC
http://goo.gl/ohv6Og
Accenture
http://goo.gl/adBKdS
FinTechCity
http://goo.gl/M1zvPv

24. 24
Simplify
Ideally remove complexity
If you can’t, then develop intelligent
interfaces that hide the complexity

25. 25
Simplify
Government
processes are full of
complexity, special
rules and edge-cases
Gov.uk
https://goo.gl/WlQjjv

26. 26
Fintech Challenge
1. You are being disrupted
by automation and business changes
2. You can fight back
by exploiting digital, acquisitions & simplifying

27. 27
and finally…
The challenge of Fintech might not
really be about the Tech.
The challenge might be about the
brand: new, fresh, untainted

28. 28