1. Fintech is leading five transformations in the financial services industry: (1) startups are stepping between banks and customers, (2) robo-advisors are replacing human advisors, (3) startups are distributing insurance without agents, (4) POS technology is going mobile, and (5) blockchain is streamlining processes.
2. These transformations threaten traditional financial institutions with reduced profits and market share, but also provide opportunities to partner with or acquire startups to address customer needs.
3. Regardless of timing, fintech poses a threat as it is disrupting areas like banking, payments, lending, and wealth management.
IMAP Fintech Sector Leaders share insights into the global Fintech sector.
They look at the short- and long-term effects of the COVID pandemic and which subsectors stand to lose and who ultimately stands to benefit. Sharing their thoughts on key themes disrupting the sector, including payments, digitalization, lending and mobile, they examine
how these have been impacting M&A activity and valuations.
They provide an overview of the most active players, as well as expectations for this key sector moving forward.
Event: "#FinTech in Asia" - Slide Deck 2nd of February 2015CFTE
Slides used during the "FinTech in Asia" event organised by FinTech Circle and Hosted by Morrison & Foerster. Held in London on the 2nd of February 2015
IMAP Fintech Sector Leaders share insights into the global Fintech sector.
They look at the short- and long-term effects of the COVID pandemic and which subsectors stand to lose and who ultimately stands to benefit. Sharing their thoughts on key themes disrupting the sector, including payments, digitalization, lending and mobile, they examine
how these have been impacting M&A activity and valuations.
They provide an overview of the most active players, as well as expectations for this key sector moving forward.
Event: "#FinTech in Asia" - Slide Deck 2nd of February 2015CFTE
Slides used during the "FinTech in Asia" event organised by FinTech Circle and Hosted by Morrison & Foerster. Held in London on the 2nd of February 2015
The Inclusive Fintech 50 applicant pool provides new insights into inclusion-focused fintech, itself a subset of the fintech universe. Early-stage inclusive fintechs are developing innovative products, services, business models, and distribution channels to provide solutions for underserved segments. Yet these startups require capital and other resources in order to reach the world’s 3 billion financially underserved people. By highlighting these high-potential companies, we hope to support the efforts of investors, banking partners, and other fintechs working towards a financially inclusive world.
https://runfrictionless.com/b2b-white-paper-service/
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
The FinTech sector has grown rapidly in last few years and is on track of ever evolving track. Prior to 2008 financial crisis, the traditional banking sector was the only playground available for financial needs. The financial crisis collapsed the traditional banking & financial mechanism and paved the way for more secure and updated financial transaction which led to emergence of FinTech, which has altered the economic viability of traditional banking sector participants to originate loans, translating into contraction of the credit supply for individuals and SMEs.
Today, financial markets & services are flooded with technology driven innovation, whereby new non-depository institutions- referred to as peer-to-peer financing, loan based crowdfunding platform, marketplace lenders (MPL) - providing loans of various types and duration to end users through online and mobile channels. Some of these companies lend from their own corpus/balancesheet, while some serve as brokers between investors and borrowers, commonly referred to as “Platform Lenders”.
Payments has been the frontrunner in the large scale consumer adoption of Fintech in India, aided by the spread of smartphones and mobile internet at affordable price points. Most FinTech players started out by identifying a niche/use case for building a customer base ( e.g. Paytm for online payments, Ola Money for cab payments, Airtel Money for phone bills etc.) and then expanding onto other services.
Indian regulatory authorities including RBI, SEBI & IRDA have adopted an accommodative stance towards an emerging Fintech sector without bringing in prohibitive guidelines to over regulate the sector. Despite catching up with the rapidly evolving eco system, Indian regulators have adopted a consultative approach and have been proactively foreseeing the need for adequate regulations, especially in the areas concerning public funds i.e. peer-to-peer lending, crowd funding and alternative currencies.
Financial Technology is seen as a major disruptive force in banking but there are also examples where they are working together. Either way the banking business model will need to change profoundly.
The Singapore FinTech Consortium - Introduction to Financial Inclusion in Sou...FinTech Consortium
In recent years FinTech, has grown tremendously and is making its presence felt across the globe. The Singapore FinTech Consortium presents our slide deck: Introduction to Financial Inclusion in Southeast Asia to give you a preview of our research in the Southeast Asian landscape.
If you are keen to learn about P2P Lending, please view our slide deck at:
http://www.slideshare.net/SGFinTech/singapore-fin-tech-consortium-intro-to-p2p-lending
If you would like to receive a pdf copy of any of our slide decks, please drop us an email at info@singaporefintech.com and we'll be happy to oblige. For more information about us and our service offerings, please visit our company website at www.singaporefintech.com.
Beyond Banking: New Business Models for the Digital EraJessica Wilkinson
The banking and financial services industry is undergoing a period of unprecedented disruption, which is re-shaping the competitive landscape.
Criterium Group believes we’re experiencing a fundamental change in how people manage, save and spend their money –which means banks and credit unions will need to re-imagine how they deliver value to customers and members.
We’re experiencing a disintegration of the financial industry. But disruption is exciting, not scary. As our relationship with money evolves, there are endless opportunities to delight customers and deliver value. However, competing in a digital age takes a completely different approach.
Criterium Group has considered the changing landscape from a competitive, financial, technological and operational perspective to re-design the traditional banking business model to win in a digital world.
An overview of the fintech industry and what London does to be the leader.
A presentation made at Fintech Fusion Geneva by Susanne Chishti from FINTECH Circle.
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...Luis Castejon-Martin
It is a pleasure to share with you our final report for the MIT Fintech Future Commerce course, Capstone Project Group 168, developed during this year by a dream team of very experienced managers and consultants as @Colin Bennett @Parrish Pryce-Williams @Andrea Monaco and @Jackie Noakes, working in the financial sector in London (except me in Madrid).
The main goal of the report is to develop our Fintech Strategic Roadmap for the UK’s Largest Banks: HSBC, Barclays, Lloyds, RBS and Santander.
The key recommendation is that every banking incumbent requires a robust Fintech Strategic Roadmap.
The wealth management industry is entering a period of significant disruption, with robo-advice at the heart of this disruption. Digital, automated advice will likely become a standard expectation for the mass-affluent and mass-market segments. But big data and advanced analytics have the potential to dramatically expand the scope of roboadvice, incorporating financial planning into broader retirement, health, and wellbeing, and enabling quasi institutional research, which could then impact all investor segments. All wealth management firms should take notice. Read more: http://www2.deloitte.com/us/en/pages/consulting/articles/robo-advisors-capitalizing-on-growing-opportunity.html
Creating a Holistic Financial Experience Strategy BlendConf 2013Rikki Teeters
Big Banks have lost the trust of the people. Traditional relationships between banks and the people need to change from Sales People / Customers to Trusted Advisors / Clients. The traditional branch is not dead, it just needs to evolve. It is crucial for banks to create a Holistic Experience Strategy in order to survive in the future. The Financial Industry must stop penalizing people with fees and start adding value to their lives. It is our job to leave the industry a better place than when we found it!
Creating a Holistic Financial Experience Strategy from BlendConf 2013
The Inclusive Fintech 50 applicant pool provides new insights into inclusion-focused fintech, itself a subset of the fintech universe. Early-stage inclusive fintechs are developing innovative products, services, business models, and distribution channels to provide solutions for underserved segments. Yet these startups require capital and other resources in order to reach the world’s 3 billion financially underserved people. By highlighting these high-potential companies, we hope to support the efforts of investors, banking partners, and other fintechs working towards a financially inclusive world.
https://runfrictionless.com/b2b-white-paper-service/
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
The FinTech sector has grown rapidly in last few years and is on track of ever evolving track. Prior to 2008 financial crisis, the traditional banking sector was the only playground available for financial needs. The financial crisis collapsed the traditional banking & financial mechanism and paved the way for more secure and updated financial transaction which led to emergence of FinTech, which has altered the economic viability of traditional banking sector participants to originate loans, translating into contraction of the credit supply for individuals and SMEs.
Today, financial markets & services are flooded with technology driven innovation, whereby new non-depository institutions- referred to as peer-to-peer financing, loan based crowdfunding platform, marketplace lenders (MPL) - providing loans of various types and duration to end users through online and mobile channels. Some of these companies lend from their own corpus/balancesheet, while some serve as brokers between investors and borrowers, commonly referred to as “Platform Lenders”.
Payments has been the frontrunner in the large scale consumer adoption of Fintech in India, aided by the spread of smartphones and mobile internet at affordable price points. Most FinTech players started out by identifying a niche/use case for building a customer base ( e.g. Paytm for online payments, Ola Money for cab payments, Airtel Money for phone bills etc.) and then expanding onto other services.
Indian regulatory authorities including RBI, SEBI & IRDA have adopted an accommodative stance towards an emerging Fintech sector without bringing in prohibitive guidelines to over regulate the sector. Despite catching up with the rapidly evolving eco system, Indian regulators have adopted a consultative approach and have been proactively foreseeing the need for adequate regulations, especially in the areas concerning public funds i.e. peer-to-peer lending, crowd funding and alternative currencies.
Financial Technology is seen as a major disruptive force in banking but there are also examples where they are working together. Either way the banking business model will need to change profoundly.
The Singapore FinTech Consortium - Introduction to Financial Inclusion in Sou...FinTech Consortium
In recent years FinTech, has grown tremendously and is making its presence felt across the globe. The Singapore FinTech Consortium presents our slide deck: Introduction to Financial Inclusion in Southeast Asia to give you a preview of our research in the Southeast Asian landscape.
If you are keen to learn about P2P Lending, please view our slide deck at:
http://www.slideshare.net/SGFinTech/singapore-fin-tech-consortium-intro-to-p2p-lending
If you would like to receive a pdf copy of any of our slide decks, please drop us an email at info@singaporefintech.com and we'll be happy to oblige. For more information about us and our service offerings, please visit our company website at www.singaporefintech.com.
Beyond Banking: New Business Models for the Digital EraJessica Wilkinson
The banking and financial services industry is undergoing a period of unprecedented disruption, which is re-shaping the competitive landscape.
Criterium Group believes we’re experiencing a fundamental change in how people manage, save and spend their money –which means banks and credit unions will need to re-imagine how they deliver value to customers and members.
We’re experiencing a disintegration of the financial industry. But disruption is exciting, not scary. As our relationship with money evolves, there are endless opportunities to delight customers and deliver value. However, competing in a digital age takes a completely different approach.
Criterium Group has considered the changing landscape from a competitive, financial, technological and operational perspective to re-design the traditional banking business model to win in a digital world.
An overview of the fintech industry and what London does to be the leader.
A presentation made at Fintech Fusion Geneva by Susanne Chishti from FINTECH Circle.
Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course ...Luis Castejon-Martin
It is a pleasure to share with you our final report for the MIT Fintech Future Commerce course, Capstone Project Group 168, developed during this year by a dream team of very experienced managers and consultants as @Colin Bennett @Parrish Pryce-Williams @Andrea Monaco and @Jackie Noakes, working in the financial sector in London (except me in Madrid).
The main goal of the report is to develop our Fintech Strategic Roadmap for the UK’s Largest Banks: HSBC, Barclays, Lloyds, RBS and Santander.
The key recommendation is that every banking incumbent requires a robust Fintech Strategic Roadmap.
The wealth management industry is entering a period of significant disruption, with robo-advice at the heart of this disruption. Digital, automated advice will likely become a standard expectation for the mass-affluent and mass-market segments. But big data and advanced analytics have the potential to dramatically expand the scope of roboadvice, incorporating financial planning into broader retirement, health, and wellbeing, and enabling quasi institutional research, which could then impact all investor segments. All wealth management firms should take notice. Read more: http://www2.deloitte.com/us/en/pages/consulting/articles/robo-advisors-capitalizing-on-growing-opportunity.html
Creating a Holistic Financial Experience Strategy BlendConf 2013Rikki Teeters
Big Banks have lost the trust of the people. Traditional relationships between banks and the people need to change from Sales People / Customers to Trusted Advisors / Clients. The traditional branch is not dead, it just needs to evolve. It is crucial for banks to create a Holistic Experience Strategy in order to survive in the future. The Financial Industry must stop penalizing people with fees and start adding value to their lives. It is our job to leave the industry a better place than when we found it!
Creating a Holistic Financial Experience Strategy from BlendConf 2013
20170118 Presentatie 'Overleven in een wereld van fintechs v1.0' Pascal Spelier
Deze presentatie gaf ik op een nieuwjaarsbijeenkomst voor hoofdzakelijk financieel adviseurs. Welke ontwikkelingen zien we in de wereld van FinTech? Hoe kunnen financieel adviseurs overleven in een snel veranderende omgeving, waarin Fintechs een steeds belangrijker rol gaan spelen? Wil je meer weten over deze presentatie of andere presentaties die ik geef, neem dan contact met mij op: www.finno.nl / pascal(punt)spelier(apedingetje)finno(punt)nl.
Alternative Data: Transforming SME FinanceJohn Owens
This presentation summarizes the IFC/World Bank/G20 GPFI report on the landscape of alternative data and players that are expanding access to SME finance. This presentation was prepared jointly with the effort of my co-author Lisa Wilhelm. The complete report can be downloaded at https://www.smefinanceforum.org/post/alternative-data-transforming-sme-finance
“71% of Millenials prefer going to the dentist than the bank, whilst a third are willing to change banks in the next 90 days as they see no major difference between one bank and any other.”
This statement encapsulates the principal challenge facing today’s financial institutions in terms of their user experience and level of digitization. It was with this challenge in mind that we set out to analyse the FinTech sector, which constantly finds new ways to capitalize on the opportunities and to solve the problems that this change produces.
Our assessment was based on data from surveys, statistics and particular cases of financial companies using technology to sell their products and services. We shared our findings in “Fintech Report Argentina 2017”. Starting big and gradually working down we focused on the strengths, weaknesses, opportunities, and threats that confront the FinTech sector at the global, regional and local levels.
A primer on the Fintech market in India, with infographics on the market landscape, size and evolution paths. Includes estimates on penetration levels of digital banking and category specific growth expectations.
How FinTech is Changing Personal Finance Dara Albright
Depressed interest rates and volatile equity markets are driving an unprecedented interest in retail alternative investment products. Fortunately, through the intersection of technology and regulation, new FinTech archetypes are emerging to satisfy that demand. This is the slidedeck used during the 9/21/16 webinar, “How FinTech is Changing Personal Finance” which highlighted some of these groundbreaking technologies, tools, apps, rules and investment products that are transforming the financial services industry and changing the way people invest as well as save for retirement. The webinar is available on-demand at https://www.brighttalk.com/webcast/9407/193819
Fintech in insurance. Focus on RoboAdvice - Changing the face of wealth management landscape on back of trend of “self-service”, disintermediation, automation spurred by the internet.
Early Stage Fintech Investment Thesis (Sept 2016)Earnest Sweat
Here is an example of a personal investment thesis that I created to share with venture capital firms. In this example, I provide my personal perspective on the fintech sector. For details on how I build this thesis check out my blog (https://goo.gl/CU4Qid).
Note: Some of the confidential information has been redacted for privacy.
1. Providing in-depth insight, data, and analysis of everything digital.
Five Ways Fintech
Is Shaping The Future
Of Financial Services
Image source: Shutterstock/isak55
2. Providing in-depth insight, data, and analysis of everything digital.
Five Ways Fintech
Is Shaping The Future
Of Financial Services
Image source: Shutterstock/isak55
3. AGENDA
The Rise Of Fintech
The Hype Vs. The Reality
Five Unstoppable Transformations In Financial Services
What’s Ultimately At Stake?
4. FINTECH IS REACHING A BOILING POINT
Source: William Garrity Associates, Google
$49.7 billion was invested globally on fintech
in the last 5 years.
As a search term, ”fintech” has risen 1,300%
on Google over the past year.
5. GLOBAL FINTECH FINANCING ACTIVITY
HAS SKYROCKETED
Global Fintech Financing Activity
$Billions
Source: BI Intelligence estimates based on CB Insights data, Accenture, KPMG
$1.9 $2.1 $2.8
$4.3
$12.2
$20.0
2010 2011 2012 2013 2014 2015
6. WHAT IS FINTECH?
Fintech: n. A blanket term for disruptive
technologies affecting the financial
services industry.
7. THERE ARE LOTS OF CONCERNS ABOUT THE
FINTECH INDUSTRY
Sources: Bloomberg, AdviseOnly, The New York Times
It’s a bubble that’s about to burst.
It’s an over-used buzzword.
Banks are too entrenched to
be disrupted.
8. THIS TABLE VALIDATES SOME OF THESE CONCERNS
Source: Business Insider
Valued at $1 billion (£680
million)…70x revenue
Revenue of just $13.8
million (£9.7 million)
And a net loss of $16.7
million (£11.4 million)
9. AND THEN THERE’S THE IMPLOSION OF POWA
TECHNOLOGIES, ONCE A UNICORN
Sources: Business Insider, Sky News
10. BUT THE REALITY IS…
Banks have massive, entrenched, and
inefficient infrastructure
that is difficult to overcome.
Top 20 US banks
have nearly $10
trillion in assets*
*Source: US Federal Reserve
12. THE REALITY IS…
The current customer experience is outdated — consumers now
expect their financial experiences to be:
Mobile Personalized Customizable Accessible
13. FINTECH CAN DISRUPT ANY AREA OF BUSINESS
Back-Office
Middle-
Office
Front-Office
17. 1. Fintech startups are stepping in between banks and their
customers.
FINTECH IS LEADING FIVE
UNSTOPPABLE TRANSFORMATIONS
18. PEOPLE AREN’T VISITING BRANCHES OFTEN
Frequency Of Bank Visits
“Approximately how many times do you visit a physical bank location (for reasons other than using an ATM)?”
Source: BI Intelligence Digital Banking Survey
38%
26%
10%
10%
5%
6%
Don't visit
Less than 1 visit per month
1 visit per month
2 visits per month
3 visits per month
4 or more visits per month
22. PEER-TO-PEER LENDERS PROVIDE A
MARKETPLACE THAT CONNECTS BORROWERS
WITH INVESTORS
Lending PlatformBorrower Lender/InvestorApplies for a
loan (1)
Commits to a
borrower (2)
23. THE BANK IS ON THE SIDELINES AND DOESN’T
CONTROL THE CUSTOMER RELATIONSHIP
Lending PlatformBorrower
Lender/Investo
r
Partner Bank
Applies for a
loan (1)
Commits to a
borrower (2)
Issues the
actual loan (4)
Loan note transfer
Loan note purchasing
Initial application and funding
Gives cash to
the platform (6)
Purchases the loan note
using investor’s cash (7)
Loan note
(5)
Loan
note (8)
Investor receives
loan note (9)
Informs third-
party bank that
borrower is
verified,
investors have
committed (3)
Loan repayment
(10) (11)
24. MARKETPLACE LENDING IS A WINNING FORMULA IN
THE US, EUROPE, AND CHINA
Marketplace Lending Volume In China, US, And Europe Combined
Sources: Cambridge University, Ernst & Young, GrowthPraxis, Wangdaizhijia, Online Lending House,
BI Intelligence estimates
$0
$50
$100
$150
$200
2012 2013 2014 2015E
Billions
25. SO BANKS ARE GETTING SIDELINED IN MULTIPLE
WAYS. HOW ARE THEY RESPONDING?
26. BANKS ARE
INNOVATING OR PARTNERING
Source: Business Insider
Goldman’s launching an online
lending division.
JPMorgan partnered
with OnDeck to reach
more small businesses.
27. 1. Fintech startups are stepping in between banks and their
customers.
2. Robo-advisors are replacing human wealth advisors.
FINTECH IS LEADING FIVE
UNSTOPPABLE TRANSFORMATIONS
29. WHY IS ROBO-ADVISING BENEFICIAL?
Removes brokers but still generates solid returns,
at a fraction of the cost
Customizable, personalized
No leftover cash
Lower fees
Lower minimums
30. ROBO-ADVISORS ARE GROWING MORE QUICKLY
THAN OLDER PLAYERS
Source: CB Insights
Time To $1B Assets Under Management (AUM)
2
years
1 2 3 4 5 6
$1 billion
years
1
$1 billion
32. THEY’RE STILL VASTLY LARGER
THAN THE LARGEST START-UPS
Assets Under Management
$Billions
Source: The Wall Street Journal, Bloomberg, CNBC
$9
$3,000
Wealthfront, Betterment, and Personal Capital Vanguard
33. THEY’VE ALREADY COPIED THE ROBO-ADVISING
MODEL WITH GREAT SUCCESS
Source: The Wall Street Journal, Bloomberg, InvestmentNews
Assets Under Management
$Billions
$9
$7
$10
Wealthfront Vanguard Personal Advisor Services
New assets Assets transitioned from pre-existing service
$17
34. OLDER GENERATIONS STILL WANT
AN IN-PERSON ADVISOR
Gen X and Baby Boomer Sentiment About Robo-Advising
Source: The Allianz Generations Apart Study, January 2015
69%
35%
10%
Don't really trust online advice
Interested in working with a robo-advisor
Comfortable having relationship with financial
advisor exist entirely online
35. BUT ROBO-ADVISING WILL TAKE OFF
Estimated US Robo-Advisors Assets Under Management
$Trillions
Source: A.T. Kearney
$0.3
$0.5
$0.9
$1.5
$2.2
2016E 2017E 2018E 2019E 2020E
36. ULTIMATELY, THAT’S GOOD FOR CONSUMERS
Traditional Advisors’ Loss In Revenue From Price War With Robo-Advisors
$Billions
Source: A.T. Kearney
-$1 -$3
-$32
-$61
-$85 to -$90
2016E 2017E 2018E 2019E 2020E
37. 1. Fintech startups are stepping in between banks and their
customers.
2. Robo-advisors are replacing human wealth advisors.
3. Fintech start-ups are distributing insurance plans without
the use of agents.
FINTECH IS LEADING FIVE
UNSTOPPABLE TRANSFORMATIONS
38. THE TRADITIONAL INSURANCE PROCESS
IS SLOW AND INEFFICIENT
Source: World Economic Forum
The distribution of insurance is especially
inefficient because it relies on sales agents
R&D/Product
Manufacturing
Distribution Underwriting Claims
Risk Capital &
Investment
Management
39. AGENTS ARE COSTLY
Source: Core Innovation Capital
37,500
insurance
agencies in
the US
Consumers
spend $25
billion per year
in agent
commissions
40. COSTS COMPRISE A HUGE SHARE
OF INSURANCE PREMIUMS
Source: Core Innovation Capital, BI Intelligence calculations
How The US Insurance Industry’s $1+ Trillion Premiums Are Spent
Claims & Claims
adjustment, 65%
Costs, fees, and
profit, 35%
~$364 billion cost
to consumers
44. THE INSURANCE INDUSTRY WILL SHIFT
FROM SALES-BASED TO INFORMATION-BASED
Insurance will be commoditized and distributed online.
Cutting out sales agents will make the distribution process
more efficient.
This could create cost-savings for insurance companies,
which is then passed on to consumers.
45. 1. Fintech startups are stepping in between banks and their
customers.
2. Human wealth advisors are being replaced by robo-advisors.
3. Fintech startups are distributing insurance plans without
the use of agents.
4. POS technology is going mobile.
FINTECH IS LEADING FIVE
UNSTOPPABLE TRANSFORMATIONS
51. 1. Fintech startups are stepping in between banks and their
customers.
2. Robo-advisors are replacing human wealth advisors.
3. Fintech startups are distributing insurance plans without
the use of agents.
4. POS technology is going mobile.
5. Blockchain is streamlining processes throughout
financial institutions.
FINTECH IS LEADING FIVE
UNSTOPPABLE TRANSFORMATIONS
52. FINANCIAL TRANSACTIONS INVOLVE COMPLEX
STEPS WITH MULTIPLE VERIFICATION POINTS
Example: Securities settlement
Matching Clearing
Life cycle
management
Collateral
management
and valuation
Settlement Custody
Source: Santander, Eureka Financial
Clearinghouse sets up
the trade
All parties have to confirm
terms and conditions
53. THE BLOCKCHAIN USES A GLOBAL NETWORK
TO VERIFY TRANSACTIONS
Sources: Business Insider, Barclays
Current blockchain 1) Bundle recent
transactions into a block
Updated chain
Transaction 996
Transaction 995
Transaction 994
Reference to Prior Block
Transaction 999
Transaction 998
Transaction 997
Reference to Prior Block
Transaction 999
Transaction 998
Transaction 997
Reference to Prior Block
Transaction
1,002Transaction
1,001Transaction
1,000Reference to Prior Block
Transaction
Transaction Reference to
prior block
Transaction
2) Verify block using
cryptography and
computing power
3) Add to chain and
distribute block over
the network
54. IT COULD REDUCE BANK PAYMENTS, SECURITIES
TRADING, AND COMPLIANCE COSTS
Source: Santander
$15 billion-$20 billion in potential annual savings
by 2022
55. OVER 40 BANKS ARE ALREADY TESTING
BLOCKCHAIN APPLICATIONS WITH R3 CEV
56. BANKS WILL BENEFIT THE MOST
Banks face the highest operating costs
and are already jumping on the trend.
Companies that function solely as intermediaries
could be in trouble.
57. 1. Fintech startups are stepping in between banks and their
customers.
2. Robo-advisors are replacing human wealth advisors.
3. Fintech start-ups are distributing insurance plans without
the use of agents.
4. POS technology is going mobile.
5. Blockchain is streamlining processes throughout
financial institutions.
ALL OF THESE TRANSFORMATIONS
ARE WELL UNDERWAY
59. INCUMBENTS RISK REDUCED PROFITS
AND MARKET SHARE
What Are The Threats Related To The Rise Of Fintech Within Your Industry?
Source: PwC Global FinTech Survey 2016
67%
59% 56% 53%
Pressure on margins Loss of market share Information
security/privacy threat
Increase of customer
churn
60. THESE THREATS ARE PUSHING INCUBMENTS
TO ACQUIRE AND PARTNER WITH START-UPS
How Are You Currently Dealing With Fintech Companies?
Source: PwC Global Fintech Survey 2016
9%
11%
14%
25%
32%
Acquire fintech companies
Launch own fintech subsidiaries
Set up venture funds to fund fintech services
Do not deal with fintech
Engage in joint partnerships with fintech firms
61. THIS COULD BE BENEFICIAL BECAUSE START-UPS
ARE ADDRESSING CUSTOMERS’ NEEDS
Net Promoter Score
(Index Ranging From -100 to 100 That Measures Customer Loyalty)
Source: OnDeck company filings
76
46
19
9
OnDeck Community Banks Regional Banks National Banks
62. BUT ON THEIR OWN, START-UPS
ARE CHALLENGED BY REGULATIONS
Top Challenges For The Fintech Industry
Source: Silicon Valley Bank
43%
24%
18%
15%
Regulation
Companies' reluctance to adopt new technologies
Changing consumer behavior
Access to funding
64. REGARDLESS OF TIMING, THE REALITY
IS THAT FINTECH IS A THREAT
Share Of Business Threatened By Fintechs
Source: PwC Global FinTech Survey 2016
28%
24% 23% 22% 21%
Fund transfer &
payments
Banks Average Asset/Wealth
management firms
Insurance firms
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