Managing Partner of Life.SREDA shares key numbers and trends of the Fintech scene for the first half of 2016. Watch the keynote on youtube here: https://www.youtube.com/watch?v=u31ILlyAfuM Slava Solodkiy is one of TOP 35 most influence fintech-persons in the world and TOP 100 fintech leaders in Asia. Interested to get a fintech idea started but don't know how to start? Then join the FREE MDEC Fintech Masterclass on October 3-4. To enter just tell us about your Fintech idea! Apply here: bit.ly/fintech-master More information about the complete Fintech Bootcamp: www.itrain.com.my/fintech-bootcamp/

1. OVERVIEW OF FINTECH IN 1H’2016:
key numbers and main trends
Vladislav Solodkiy
Life.SREDA, Managing Partner
most influential
fintech persons
in the world @SlavaSolodkiy
/VladislavSolodkiy
35

2. Life.SREDA I Life.SREDA II Asia
Banking on
Blockchain Fund
Moscow Singapore London
2012 2015 20162014
13 A new venture fund dedicated to
investing in the blockchain ecosystem
6 6 investments
(South East Asia)
Research & Vision
www.
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exits
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First BaaS-platform for Asia
is very necessary for the future
fintech development
Life.SREDA VC Executive Summary

3. Funding
Total fintech funding includ-
ing activity by angels, corpo-
rates, PE firms, mutual funds
and hedge funds hit 1288
with 41% raised by e-com-
merce startups deals vs 1053
with 48% raised in e-com-
merce during the same period
last year.
Corporates get more active
in local fintech deals.
Corporate participation in
European fintech deals rose
to almost a quarter in H1’16
from just 8% in Q4’15.
Corporates pursue fewer
deals in Asian fintech in
Q1’16. Corporate participa-
tion in Asian VC-backed
fintech deals fell to 31% in
Q1’16, a 5-quarter low.
Asian share of companies in
top financing is growing
steadily
April had the record single
funding of $4.5B (Ant Finan-
cial) - $125M was debt
Insurance Tech takes 3 of 10
largest US fintech financings
in the H1’2016.
Lending takes 5 of 7 largest
Asian fintech financings in the
H1’2016
The global investment in
blockchain has exceeded
USD 1 billion in over a thou-
sand startups and is expected
to increase four-fold by 2019,
growing at a CAGR of 250 per
cent
Financial technology market analysis, H1 2016
Investment in Financial technologies,
Quarterly ($B)
2.6 2.95 2.7
4.05 4.1
6.1
7
3.1
6.7
8.3
2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Investments in fintech
Annually ($B)
Amount of financing deals
& M&A deals (#)
Note/source: Source: Capital IQ, FT Partners, Pitchbook, The Pulse of Fintech, Q1 2016, Global Analysis
of Fintech Venture Funding, KPMG InternaIonal and CB Insights (data provided by CB Insights) May 25th, 2016.
Other fintech
investment ($B)
VC Backed fintech
investments ($B)
2.2 2.5 2.9
0.3
2011 2012 2013 2014 2015 2016 1H
0.4 1.1
5.5
2.6
5.8
6.8 14.5 12.4
100 99
71
82
117
76
121
74
128
93
139
95
109
83
162
111
150
80
114
69
108
59
151
106
128
89
122
82
114
69
103
55
134
93
109
102
Investment traction
in Financial technologies,
Quarterly ($B)

4. Major banks investments
Goldman Sachs, CITI, Barclays
lead pack of banks in fintech investing
in H1 2016
Number of investments to
VC-backed Fintech Companies
– in H1 2016
– in H1 2015
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5. Insurtech takes 3 of 10
largest US fintech financings
Lending takes 4 of 5 largest
Asian fintech financings
Blockchain & bitcoin
for the first time presents
2 companies in top financing
Asian share of companies
in top financing is growing
steadily
Key observations
H1 2016
North America
$1.91B
companies
17
$718M
companies
4
Europe
$182M
companies
2
South America
Note/source: Source: Capital IQ, FT Partners, Pitchbook, The Pulse of Fintech, Q1 2016,
Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) May 25th, 2016.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Ant Financial
Lu.com
JD Finance
Oscar Health Insurance
Ion Investment
CommonBond
Fenqile
Clover Health
Weidai
Lendup
EDM _Group
XP Inves
Kreditech
Belerment
Fractal Analytics
$4.500M
$1.216M
$1.010M
$400M
$400M
$275M
$235M
$160M
$153M
$150M
$145.1M
$130M
$103M
$100M
$100M
Series B
Series B
n/a
Series C
PE
Late
Series D
Series C
Series C
Series B
n/a
PE
C
Series E
n/a
Payments
[4]
Lending
[8]
Insurance
[3]
Financial BPO
[1]
Wealth management
/ Capital Markets
[4]
Banking
[3]
Big Data
[1]
Financial
management
[2]
Real Estate
[1]
Blockchain
[3]
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Affirm
Anaplan
Opendoor
Bright Health
Tradeshift
Personal Capital
Starling
Digital Asset Holding
Circle
Duanrong
Blockstream
Nubank
Licaifan
Mobikwik
Lendup
$100M
$90M
$80M
$80M
$75M
$75M
$70M
$60M
$60M
$59M
$55M
$52M
$51M
$50M
$50M
Series D
Series E
Series C
Series A
Series D
Series D
Venture
Series A
Series D
Series B
Series A
Series C
Series C
Series C
Series B
30 largest fintech deals of H1 2016 received a financing of $13.31B
$7.22B
companies
7
Asia

6. The market doubles every year.
It is neither good or bad - it is normal
At the moment, I would single out three much more important
fintech issues, rather than record volume of deals:
Scaling
as little as 30 companies
worldwide show that they
are able to quickly export their
products and services to
other countries
medium-sized companies face
the future funding problem.
Such companies are already
successful in one market and “burn”
a lot of money, but in most cases,
they are still loss making, and further
need either geographical expansion
or extension of their product range.
At this stage, neither “cash
exit” for founders of acquired
services nor acquisition of a
readymade business is
applicable
Round B problem The growth through M&A

7. This and the next year the major focus
will be on mergers of fintech startups:
They started integrating by
themselves on the partnership
terms;
So far we have seen quite a few M&A
deals but I have no doubt that soon
there will be more and more of them;
Cheap&fast customer
acquisition,
but low margin
High margin,
but expensive CP
Cheap&fast customer
acquisition
High margin
Better tailoring
customerto
More data = low credit risks
Online-trading Online-remittances
Online-bank mPOS
mPOS e-wallets
Online-lending Online bank
Online-lendingOnline bank
Mobile bank Online-remittances

8. Banks
Licensed and regulated
banking back-ends (belongs to banks
in each country in Asia-Pacific region)
based on 40+ universal APIs
100+ fintech-startups
Middleware
provide for them
universal APIs
Fintech-startups do not
need to spend time,
money and human
resources to be integrated
in each Asian country
Banks do not need to
spend their time and
money to create new
APIs and to communicate
with all startups all over
the world
Bank-as-a-service
Ecosystem
Now we see a heavily growing demand from fintech startups for advanced
banking infrastructure to launch and scale faster and more effectively
(Bank-as-a-service)

9. There are a few BaaS-platforms
(in most countries of the world
none at all), and only a small
number of companies in the
market have open APIs - but it
is already clear that the market
has matured, that without solving
these infrastructure problems
further fintech growth
will be very limited
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First BaaS-platform
is very necessary for the
future fintech development

10. Most importantly, the market starts talking about fintech-bank –
a company, providing not one but dozens
of fitnech product and services
Based on BaaS-platform
it would be possible
to create a Fintech-bank
witn Tesla like-UX
Tesla - is not about electric car.
It’s about ecosystem of
services which creates
new user experince.
No dealers
(and middle-men),
only own showrooms
Worldwide network
of chargers
Battery and engine
manufacture
Centralised contact-
center and technical
support
Software&
interface manage
your car through tablet
New car insurance for
electric cars based
on big data

11. Booming fintech trends:
Online-remittances
Almost all major players
successfully raised new
funding rounds in the
past six months
keep growing at a
faster rate
As for social-based remittances,
none of the messengers
(except WeChat) shows any
outstanding performance
in terms of turnover and
number of clients.
have got second wind and
a new growth phase with
the support of the British
regulator.
e-Wallets Neo- and
challenger banks

12. Booming fintech trends:
Explosive growth of
Online- and P2P-loans
Student loans are still popular only in the USA – no other
countries have attained such scope and growth rates.
The borderlines between P2B, SME loans
and crowdinvesting become gradually erased
and provide a huge and fast-growing field
of alternative SME financing.
Big data and online scoring are growing
fastest in the unbanked markets
The maximum number of new players are thinking in terms
of small and medium business loans

13. Booming fintech trends:
mPOS-acquiring
shows that while this business is
mostly lossmaking (being low-margin), but it successfully
(and at low cost) wins SME customers and generates
extensive data on them
Online acquiring
is the same low-margin sphere as mPOS, although
with a higher profit form lower investments
Online-trading and wealth-management
are often brought down to robo-advisory services,
although this is not the case as the industry is much more
versatile and interesting

14. New prospective spheres:
«Fintech for unbanked» solutions
IoT, O2O, big data, chat-bots
Availability of Open APIs to banks and BaaS-platforms
is critical for fintech startups, both for the start and further
international expansion.
Implementation of the Blockchain technology as real
business is curbed by the very blockchain benefit:
the technology is developed for mass use and
has no use without it.
Insurtech is a relatively new development, it has brought
together more than 150 startups

15. Niche developments:
It is still unclear why mPOS companies fail to
develop successful solutions in POS management
systems and tablet-based cash-registers, these sectors are
so close that they are bound to merge eventually
Crowdfunding will grow into a huge industry, unless
it stays only a new version of charity
Personal Financial Management (PFM) has developed
as an independent sector only by a small number of companies
Price-comparison and broker-model sites is a gradually
dying-out model, despite that some companies keep
successfully developing and attracting new rounds
Fintech for SMEs is quite an undervalued sector

16. All you need to know about Fintech
you can find in a new Life.SREDA’s
fintech research
“Money of the Future 1H 2016”
www.fintech-research.com