An introduction to the fintech space, with additional information on the wealth management space. This presentation was made for my team so that they would better understand the industry they are working in and where it is headed.

1. Navigating the Fintech Landscape
+WealthTech
By Jaideep Tibrewala
Head of Product - Glide Invest
2020 Dec | v03

2. Disclaimer
This presentation is meant for private circulation only.
All the content is taken from material that has been made
available to me through various sources, both online as well as
personal network.
All sources are referenced at the bottom of each slide.
Storyline and summaries are mine.
The rest are represented as-is in most cases.

3. Several factors have created opportunities for disruption
in the Financial Services space across the world
Source: Fintech Landscape, Blume, 2018

4. These opportunities enabled Technology companies to
flourish, resulting in the emergence of 8 major segments
Source: Fintech Report Q3 2020, CB Insights, 2020

5. The India Stack also emerged, and as it evolved over the
last 5 years, its promised benefits started to deliver
Benefits include
● lower cost of transactions,
● lower onboarding costs,
● providing a ubiquitous platform
● personalized offerings at scale
enabling everyone to build their
digital footprints in the country.
Source: India Fintech Report, Medici, 2020

6. Fintech in India became a much desired space to be in.
India saw an explosion of players across segments
Source: Unbundling the Bank, CB Insights, 2019

7. By 2019, India started to emerge as an Industry Leader in
the Fintech space for startups and customer adoption
Source: Fintech Lending - Unlocking Untapped Potential, Nasscom, Aug 2019; Telegram

8. One Key Trend in the Fintech space has been the
Unbundling and Rebundling of services
● MONO-PRODUCT to MULTI-PRODUCT
○ Startups move beyond a one-product model and are launching new services to expand
customer’s digital footprint
○ Ex. PayTM expanding into PayTM Money, Insurance, NPS, etc
● LEVERAGING TECH FOR PRODUCT INNOVATION
○ Startups focused on personalization create new methodologies to deliver services more
efficiently and holistically
○ Ex. Blockchain implementations by Banks and Private Institutes
● OPENING NEW INVESTING CHANNELS
○ Startups are creating next-gen investment platforms for new asset classes
○ Ex. Vested for investing in overseas Stocks from India
Source: Fintech Trends to Watch in 2018, CB Insights, 2018

9. Fintech firms are unbundling the paycheck to get access
to younger customers
Source: How do you win the next generation of customers, CB Insights, 2020

10. Open Banking is the key driver for unbundling by the
banking industry
Source: Building the Bank of the Future, CB Insights, 2019
Open banking enables the creation of plug-
and-play fintech APIs by leveraging open
financial data. These APIs enable third-party
developers to build applications and services
around data from financial institution.
● Data aggregation APIs are decentralizing
consumers data – and encouraging
innovation (ex Perfios)
● Lending APIs automate funding and debt
underwriting (ex CreditVidya)
● KYC APIs automate the onboarding
process for fintech startups (ex Signzy)

11. NeoBanking is an example of how an aspirational fintech
bank is rebundling services to be completely digital
● A neobank is a kind of digital bank
without any branches. Rather than being
physically present at a specific location,
neobanking is entirely online.
● Neobanks don’t have a bank license of
their own but count on bank partners to
provide bank licensed services.
● Neobanks are designed to be customer-
centric, and provide personalized
services to their customers that are fired
up via technology.
Source: TheDigitalFifth.com

12. Banking-as-a-Service (BAAS) is enabling companies to
rebundle various banking services at POS
● Banking-as-a-Servie (BaaS) allows companies to add banking services into apps and
products – enabling any startup or company to offer banking solutions directly to
customers at the Point of Sale (POS)
○ Short-term / Long-term / Instant loans
○ UPI for direct payment through bank accounts
Source: Building the Bank of the Future, CB Insights, 2019

13. Today, everyone in the Banking and Financial Services
industry wants to claim to be a tech company
Source: Unbundling the Bank, CB Insights, 2019
??? Fin-Tech OR Tech-Fin ???
“Our mindset is of a
FinTech company,
not a bank.”
Prashant Kumar
MD & CEO
YES Bank

14. Their biggest threat is Amazon and Google.
In the west, Amazon is making deep inroads into BAAS
Source: Unbundling the Bank, CB Insights, 2019
● Amazon Pay’s top priority is reducing
payment friction for customers to buy
goods and services and for merchants
to sell more things.
● For merchants, working with Amazon
means getting access to low fees,
Amazon marketing services, and, in
the future, easy, one-click access to
new tools that capitalize on Amazon’s
large member base.
● For consumers, the focus is on
convenience, speed, and perks that
encourage consumers to use their
Amazon Pay accounts rather than a
debit card.
Just like AliPay and PayTM, Amazon seeks to keep money in its ecosystem

15. WealthTech or
Wealth Fintechs

16. Global WealthTech deal activity has rebounded in FY20 –
62 deals with ~80% increase in value from Q3 last year
Source: Fintech Report Q3 2020, CB Insights, 2020

17. The Investment and WealthTech Market in India has
become very crowded
Source: India Fintech Report, Medici, 2020

18. Key trends in WealthTech has been Democratizing
Investing for customers across the globe
● ALTERNATIVE ACCESS TO INVESTING
○ Early investing apps lowered the barriers for investors to access existing markets with tech
○ Ex. FundsIndia, Scripbox, Clearfunds, Kuvera, Zerodha
● ACCESS TO NEW ASSETS CLASSES
○ Startups are now looking to lower barriers to enter alternative asset classes and creating new
commercially available assets.
○ Ex. US Stocks, Digital Gold, IPOs, ETFs all available on PayTM
● NEW INVESTING MODELS TO TAP EXISTING ASSETS
○ In tandem, startups are creating next-gen investment platforms that are focused on creating
new methodologies to access alternative asset classes.
○ Ex. Impact investing and ESG are on the rise
Source: Fintech Trends to Watch in 2018, CB Insights, 2018

19. As consumers are becoming digitally savvy with investing,
WealthTech startups are expected to grow in the future
Source: Wealth Expectancy Report 2019, Standard Chartered, 2019; Fintechs in India - Key Trends, Deloitte, Dec 2019
Fund flow towards robo advisors have remained muted, as these platforms have not been able
to monetise their product offerings. However, robo advisors are expected to evolve over the
years due to increasing product offerings, higher standardisation and transparency

20. Total AUM in the Indian robo–advisors segment is
estimated to grow at a CAGR of 36.2% over next 5 years
Source: Emerging Technologies disrupting the financial sector, PWC, 2020
● Democratising investment advisory
● Hybrid models with a human touch
● Sentiment analysis
● Payment players moving into the
systematic investment plan (SIP) space
● Life-stage/event/ goal-based
investment advisory
UPI to Act as Key Enabler for WealthTech
The focus is more on ease of investment transaction execution
Account aggregator services will potentially provide a boost to advisory services

21. WealthTechs are driving strategic changes in existing
business model to capture new and old customers
Source: Millenials and the future of Wealth Mgmt, CB Insights, 2018

22. WealthTechs are also rebundling products and services
ahead of their maturing customer base …
Source: How do you win the next generation of customers, CB Insights, 2020
The digital advice industry is maturing and independent players who have
not reached sufficient scale will continue to have an uphill battle

23. … while also undercutting incumbents with competitive &
transparent fees
Source: Millenials and the future of Wealth Mgmt, CB Insights, 2018
In India, we first saw Direct Plan distributors vs Regular Plan distributors. Then came the
next wave of transaction based/subscription fees vs fee-free transactions

24. WealthTechs are focusing on customized long-term
investment planning for their customers
Source: Fintech Report Q3 2020, CB Insights, 2020

25. WealthTechs now want to democratize access to assets
and diversification options for investors ...
Source: CB Insights Fintech Report Q2 2019t, CB Insights, 2019
One of the newer trends in India is giving access to US stocks to Indian investors, be it
through Mutual Funds, ETFs or direct stock trading in Indian Rupees

26. Gamifying goals is another tactic to boost active
millennial engagement on platforms
Source: Millenials and the future of Wealth Mgmt, CB Insights, 2018
Very few Indian players are using Gamification to boost engagement. Kuvera seems
to be doing the best job here. But incentivising investors is banned by SEBI.

27. WealthTechs are also bringing out customer friendly suite
of products that have a highly customizable UI/UX
Source: CB Insights Fintech Report Q2 2019t, CB Insights, 2019
Customer UX/UI is becoming the key differentiating factor as all the apps provide the
same set of services to their customers, esp millenials

28. Incumbents still miss out on UI/UX - a key to acquiring &
engaging next-gen customers
Source: How do you win the next generation of customers, CB Insights, 2020

29. Another classic case study is the difference clean UI/UX
has created for a startup versus a household name brand
Source: Millenials and the future of Wealth Mgmt, CB Insights, 2018
This situation is similar in India. The new UX/UI for Motilal Oswal brokerage site
creates a far superior experience than what they had 6 months ago

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31. What would Dilbert say about blockchain?Scott Adams

32. Jaideep Tibrewala
2020 Dec
jtibrewala
“ Only invest in
businesses that you
understand ”
Warren Buffet