Download to read offline
Uploaded byR3
BizDay: Finteum Presentation
Finteum is creating a global intraday borrowing market for banks using distributed ledger technology. They have made progress in their first year, including building an alpha version of their platform and running a successful trial with four large banks. Their goal is to facilitate more robust intraday lending markets to reduce banks' liquidity costs. They plan to generate revenue by charging banks fees for usage of the platform. Finteum is currently seeking partners, additional funding, and banks to participate in a larger pilot of their system.
More Related Content
Similar to BizDay: Finteum Presentation
BizDay: Finteum Presentation
- 1. 1 CordaCon 2019 24 October2019 Finteum is creating a global financial market for interbank intraday borrowing
- 2. Mission, Vision andValues 22 Facilitate robust intraday markets for a lasting positive impact, making the financial system fairer and safer. VisionMission Support banks toward compliant, 24-hour optimisation of available financial resources.
- 3. Big vision, weare a pre-seed startup 3 Stirling Fielding Advisor - Product 20 years in treasury, most recently MD head liquidity, Deutsche Bank James Carlyle Advisor - Technology 25+ years in technology including 9 at Barclays, chief engineer at R3 Zbi Czapran Co-founder Technology Brian Nolan Co-founder Business Andrii Nesteruk Angel Investor 10 years in investment banking, including creating an advisory firm 3 Notes Freelancers are progressing non-core IP (non-Corda, front end) We are hiring our first back end engineer team member 3
- 4. We have madegood progress in a year 4 Regulatory Engagement Industry Organisations Ongoing dialogue Ongoing dialogue Collaborators Entrepreneur in Residence company at R3 Settlement experts leading USC Technology partner in initial build Jan-Feb Graduated F10 Fintech accelerator Zurich Intraday liquidity experts CorDapp Trial May 2019 (4 banks, £1.5trn balance sheet) Potential customers: some promising leads now after discussions with ±40 banks over the last 12 months: Now negotiating commercials for pilot with 3 banks (not the banks above)
- 5. Recent Attention 5 Recent pressfor work we’ve done (but we don’t want to be overhyped) 8 Oct 2019: 2nd place to Nivaura in UBS Future of Finance Pitch 17 Oct 2019: We won ISDA / ICMA / DTCC / Barclays Derivhack for our DvP 24 Sep 2019: Sibos First stage of Corda / USC (Ethereum) interoperability & many others, thank you See finteum.com/press
- 6. The Problem Bank A BankB Payment patterns: banks often need to make large early outgoing payments. Banks and organisations with surplus intraday funds can earn a return on cash held. 6 Required liquidity buffer = expensive one sided measurement Day Starting Cash Balance Day Ending Cash Balance There is no effective interbank market to match lenders with banks that want to borrow for hours at a time. Intraday liquidity costs banks billions in profits every year x Day Starting Cash Balance Day Ending Cash Balance
- 7. Platform and Technology 7 BeforeIntraday Borrowing After Intraday Borrowing Distributed Ledger Benefits Value Delivered Bank A Required liquidity buffer = expensive Start of Day Cash Balance End of Day Cash Balance Borrow Repay Lower required buffer Start of Day Cash Balance End of Day Cash Balance Finteum Platform (’Alpha’ version built)
- 8. 8 Financial Benefit Bank annualbenefit GBP40m 8 Methodology validated with banks Independent validation Problem validation: Oliver Wyman (2018): $100-300m annual cost of intraday liquidity ($25-75m potential annual savings) Solution: Boston Consulting Group (2019): 43% of treasurers expect new intraday liquidity markets in <2 years GBP2bn Industry annual benefit
- 9. Business Model 9 Rationale ‘All-to-all’ platformsoften struggle. We need banks for settlement and for market liquidity. We will help banks to reduce cost, and to solve problems for their clients, without disintermediating or disrupting them. We want to have banks as our customers (only banks) Vendor Relationship Client Success Examples Treasury, Treasury Markets Supporting Synergies Wealth Management Asset Management Investment Bank Operations, Risk, Finance Family office earns extra 20bps on excess cash Pension fund earns 10bps on uninvested AUM cash Prime Brokerage client earns 50bps around year end in dislocated markets Bank owns its client relationships, Finteum can support integration to help improve market liquidity Potential add-ons: Single Dealer Platform integration IB Handoff Cash Man. & Risk modules MTF, or MTF Partner
- 10. Finteum Technology Stack 10 UserInterface (Web based application accessed through browser, e.g. Chrome) Finteum Application Technology Stack Scala Webserver CorDapp - back end application built on R3’s Corda (H2 DB) Cloud Deployment Ubuntu virtual machine Docker containers Node 1 Front End (React) Other Nodes Front End (React) Scala Webserver CorDapp User Interface (UI)
- 11.
- 12. What Next 1212 Banks Ask usabout our pilot, we are still engaging with banks. We would like to run a global 2-4 week product trial for 20+ banks in 2020, after pilot. Let us know if interested. Investors Ask us about our £1m seed round. For UK angel investors with relationships and expertise in markets, we have SEIS and EIS advance assurance. Others We are open to partnerships. We are recruiting a back-end engineer and we will build up a core engineering, operations and business team. Contact us if you want to build the future of financial markets.
- 13.