The document discusses the importance of digital transformation in financial services, emphasizing the role of big data, disruptive technologies, and innovative business models in reshaping the industry. It highlights various trends and challenges in fintech, along with the necessity of banks to adapt to these changes, such as through marketplace models and blockchain applications. Additionally, it advocates for an agile approach to transformation, encouraging organizations to integrate new technologies and continuously deliver value to remain competitive.

1. Be Digital or Die
By Alpesh Doshi, Fintricity
www.fintricity.com

2. Leveraging Big Data, disruptive
technologies and new business models
to transform financial services
companies.
The Big Data Innovation Summit
21st April 2016
San Francisco
By Alpesh Doshi, Fintricity

3. What is Digital Transformation?
Digital Transformation in Financial Services is
the application of disruptive technologies and
business models to transform how the
industry works.
- Alpesh Doshi
“ “

4. Big data is like teenage sex: everyone talks
about it, nobody really knows how to do it,
everyone thinks everyone else is doing it, so
everyone claims they are doing it.
- Dan Ariely
“ “
What is Big Data?

5. What’s
happening
in Fintech?
“
“
Banking is
essential,
but banks are
not
Bill Gates

6. What’s disrupting
the industry?
From payments to wealth management, from peer-to-peer lending to crowdfunding, a new
generation of startups is taking aim at the heart of the industry — and it’s a pot of revenues
that Goldman Sachs estimates to be worth $4.7 trillion (source: Money of the Future 2016,
Life.Sreda VC)
Marketplace Models
Platform Models
Banking as a Service Big Data
Blockchain
Digital
Disruptive Technologies

7. M A X I M I
Data, Data, Data
Successful players will out-FICO
FICO and be fairer than Fair Isaac
M A X I M I I
Connections & Liquidity
It’s not just about matchmaking but
also market-making.
M A X I M I I I
Formidable Barriers
Marketplace platforms are neither
easy to start nor easy to scale.
M A X I M I V
Data, Data, Data
Marketplace lenders should be built
not just to disrupt but to displace.

8. Marketplace Models

9. Platform
Models

10. Platform
Models
Source: Pipelines, Platforms, and the New Rules of Strategy Marshall W. Van Alstyne, Geoffrey G. Parker, Sangeet Paul Choudary,
HBR April 2016
From resource control to resource
orchestration.
The resource-based view of competition holds that
firms gain advantage by controlling scarce and
valuable - ideally, inimitable assets
From a focus on customer value to a focus on
ecosystem value.
Platforms seek to maximise the total value of an
expanding ecosystem in a circular, iterative,
feedback-driven process. Sometimes that requires
subsidising one type of consumer in order to attract
another type.
From internal optimisation to external
interaction.
Platforms create value by facilitating interactions
between external producers and consumers.
Because of this external orientation, they often shed
even variable costs of production.
The Power of Network Effects
The engine of the industrial economy was, and
remains, supply-side economies of scale. Massive
fixed costs and low marginal costs mean that firms
achieving higher sales volume than their competitors
have a lower average cost of doing business.

11. Blockchain applications within the
Financial Services
Blockchain use cases are broad
Capital Markets
• FX Settlement
• Cross Board Payments
• Trade Finance/Letter of Credit
• FCM/PB Credit
• Loan Settlement
• OTC Derivatives Clearing
• Securities Issuance
• Collateral Management
Consumer Banking
• Credit Scoring
• Cost of Customer Bank/Deposit
Accounts
• Cross Border Remittances
• Vault/Escrow Services
• Insurance
• Mortgage/Loan Documentation
• Peer-to-Peer Lending
Banking Processes
• AML/KYC Processes
• Client On-boarding
• Intra-Bank Settlement and
Correspondent Banking
• Compliance and Reporting/Audit
• Lower Operational Risk

12. Expose your services
in a granular way to
enable other
companies to use
them
1) Removes the need to log into a
banking portal
2) Allows customers to integrate
services to directly create stickiness

13. Banking as a Service (Baas) -
Europe
The PSD2 (Payment Services Directive) in Europe is forcing financial institutions
to open up access to banking services to anyone who would like to use them

14. Information Technology
Finance and Accounting
Regulatory, Control and Business Intelligence
Risk Management
Human Resources
Custody and Fund Administration
Product Development Marketing and Sales Risk Management Middle Office
Portfolio
Management
Market Research
New Product Development
Risk Assessment and
Pricing
Product Optimisation
Performance Management
Customer Segmentation
New Customer Acquisition
Cross Selling – Up Selling
Client Management
Campaign Management
IFA/Client Assessment
Investment Patterns
Portfolio Risk Assessment
Risk Analytics
Regulatory Reporting
Trade Matching
Accounting
Collateral Management
Matching and Settlement
Predictive Analysis
Pricing/Valuation
Asset Allocation
Performance Management
Portfolio Management
Horizontal
Functions
Fee Structures
Attribution Modelling
Portfolio Administration
Big Data in Investment
Management
Where can big data and analytics apply in Investment Management? Lots of opportunities exist.
But the challenge is:- where do you start?
Typical
IM
Functions

15. Product Development Marketing and Sales Risk Management Middle Office
Portfolio
Management
Market Research
New Product Development
Risk Assessment and
Pricing
Product Optimisation
Performance Management
Customer Segmentation
New Customer Acquisition
Client Management
Campaign Management
IFA/Client Assessment
Investment Patterns
Portfolio Risk Assessment
Risk Analytics
Regulatory Reporting
Trade Matching
Accounting
Collateral Management
Matching and Settlement
Predictive Analysis
Pricing/Valuation
Asset Allocation
Performance Management
Portfolio Management
Attribution Modelling
Portfolio Administration
Big Data in Investment
Management
Where can big data and analytics apply in Investment Management? Lots of opportunities exist. But the
challenge is:- where do you start?
Typical
IM
Functions
Determining
what products
your clients
want
Using data to
compose new
products
Marketing
analytics on
digital to find
‘good
customers’
Determine
how
investment
strategies
could be
better
Reducing
middle office
costs,
predicting
problems
Building
better models
using new
technologies
and
algorithms
Fee Structures
Cross Selling – Up Selling
Which clients
are we
servicing
well/badly?

16. Thinking about
transformation
AGILE DIGITAL
TRANSFORMATION
INNOVATIVE
THINKING.
AGILE DELIVERY.
Disruption is now a part
a financial services
market change.
A G I L E
Business
Change
Big Data &
Analytics
Disruptive
Technologies

17. Start on your journey to disrupt your
business
Build an integrated strategy focused on business out comes and models
There lots of moving parts, technologies and business models. Develop a way of finding your
strategy that can help you formulate your company future
Be Agile
Build an Agile Industrial process that delivers value continuously and focused on outcomes
These technologies are early in evolution, but you can’t ignore them.
Get a good understanding of the technologies and how they fit into your enterprise. Create a
roadmap and architecture on your future business models
Disruption will be a way of life, get used to it
If you don’t adapt, your business will die and be replaced with leaner, faster businesses and
business models

18. Alpesh Doshi
Founder & Managing Director
Alpesh is a thought leader in how
organisations can transform and
future-proof their business using
emerging technologies, particularly
around digital, big data and analytics.
He is focused on innovative thinking
and practical strategies to add value
to his clients fast and often,
introducing the agile approach of
working to digital transformation.
About Fintricity & Alpesh
Doshi
Fintricity
Innovative Thinking, Agile Delivery
Founded in 2001, Fintricity have been at the forefront of
technology and digital transformation for over 15 years.
Entrepreneurs at heart, we take a business-first approach
to match the right blend of solutions and technologies to
solve our clients’ specific business challenges.
Our practical, agile approach combined with the breadth
and depth of expertise across the team, creates
competitive advantages for your business often and fast,
keeping your customer at the heart of everything we do.

19. Thank you!
Any questions?
You can find me on LinkedIn or email the team at
getintouch@fintricity.com
Fintricity. Innovative Thinking – Agile
Delivery.