2. Financial Services Matter
Employees % of GDP
1.23M
DE
1.2M
UK
871K
FR
634K
IT
451K
ES
7.8%
UK
10.1%
IE
8.7%
NL
25.7%
LU
Source: Eurostat 2015
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3. No of Banks and Insurers in Global Top 50
UK Switzerland Germany France Sweden Italy
Largest Banks ranked by Market Cap.
Source: Relbanks
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4. Harnessing Tech
€
93%
FI
91%
EE
91%
NL
Mobile Banking
2,603 Fintech start-ups on Crunchbase
Fintech investment in Q2 2016 reached $9.4 Bn-
only $2.5 Bn was VC backed
Total Transaction Value in the "FinTech" market
amounts to $2,355,939m in 2016.
Sources: DESI
Crunchbase
KMPG, CB Insights. The Pulse of Fintech Q2 2016
Statista
4
6. Key Drivers
ENABLING
TECHNOLOGIES
NFC
Digital Currencies
Blockchain
Internet of Things
AI
APIs
Cloud storage
REGULATORY
ENVIRONMENT
National ‘sandboxing’
Digital Single Market
Small and Mid-Cap Market
PSD 2
Data Protection
KYC
AML
GEOPOLITICAL Brexit
Refugee crisis
EU Foreign relations
MACROECONOMIC
Economic Growth
National Interest Rates
Rise of other regions
DIGITAL SECURITY Digital Identities
Open Source
Quantum Computing
Open Data
CONSUMER BEHAVIOUR Technology Uptake
Confidence and Trust
Behaviour and Expectations
FUNDING Number of VC Funds
Size of Investments
Perceived Risk
Public Funding
NEW COMPETITORS Internet Giants
Non-Traditional FS
Providers
6
8. A Complex Ecosystem
Tech Companies
Financial
Institutions
Regulators
Infrastructure/Pl
atforms
Customer
Startups
A more challenging competitive
environment
Rapid growth in the availability and
accessibility of financial service
providers
A desire by many consumers to have
more autonomy
Reputational problems
Greater technological opportunities that
can fuel innovation
Legacy systems
Culture
More access to data than ever before
8
10. Staying Relevant
86% 6%
A recent McKinsey report found that 86% of respondents to a recent CEO survey felt that
innovation was absolutely critical to their firms’ futures and fully 80% felt that their business
models were likely to come under some major threat. And yet, in the same survey, only 6%
felt comfortable with their own company’s innovation performance, James Mawson
10
12. Customer-centric innovation is not about
finding that customers want …
Specific
solutions
Specifica-
tions
Quality
High-
level
benefit
12
13. Customers as a Compass
Customers- people and companies- have “jobs” that arise regularly and need
to get done. When customers become aware of a job…they look around for a
product or service that they can “hire” to get the job done. This is how
customers experience life.
Clayton Christiansen
The Innovators Solution
13
14. From Product to Customer
"People don't want to buy
a quarter-inch drill. They
want a quarter-inch
hole!“
Theodore Levitt, 1975
14
17. Access extra capital
when I need it
Make loan providers
understand my real
payback potential
Buy inventory when I
need it
Know how much
money I have to repay
each month
Avoid paying for
other’s lack of
creditworthiness
Feel I am treated on
my own merits Avoid paperwork
Get a quick decision
17
Reverse Engineering Kabbage
Avoid paying overdraft
fees
Pay back when I have
cash coming in
18. Summary
Technology is being harnessed to develop financial products that meet a
market need
The best opportunities come when Customer needs are placed at the
centre of the innovation process
Framing the problem is important but so is the method for sourcing data
and solutions
Always check for confirmation bias
Finally, just because you can, doesn’t mean you should
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19. About us
We’re an innovation agency that helps our clients stay relevant.
We bring fresh perspectives that can help you solve business challenges.
Whether your aim is to digitally transform your organisation, place the
customer experience at the heart of your business, or understand how you
can be disrupted, we help you build on market-driven insights that make
the difference between success and failure.
19
Strategy Innovation Co-creation
