This document discusses potential collaboration models between fintechs and traditional financial players. It summarizes findings from over 50 interviews and 650 pages of reports on challenges in collaborations. These challenges include outdated legacy systems, a lack of communication between sectors, and difficulties understanding each other's processes and expectations. The document proposes a solution to build innovation bridges in the ecosystem through a non-profit organization that would help connect startups to large entities, improving efficiency and securely implementing innovations. This would help close gaps between "top-down" and "bottom-up" innovation approaches.

1. DEFINING POTENTIAL
COLLABORATION MODELS
BETWEEN FINTECHS AND
TRADITIONAL PLAYERS
MICHAL GROMEK
STHLM FINTECHWEEK
FEBRUARY 11TH 2019

2. 2013 2014 2015 2016 2017 2018
40
30
20
10
0
# Amount of confirmed VC deals
1,500
1,000
500
#GLOBAL FINTECH MACRO-TRENDS REMAIN POSITIVE
Annual VC backed global fintech-deals and financing
2013-2018 YTD (Q3'18), ($B)
$3.9
$8.2
$17.9$16
$19
$32.6
#608
#838
#1071
#1159
#1350
#1164
SOURCE: GLOBAL FINTECH TRENDS Q3 2018, CBINSIGHTS
#(1460)
+1.93B EUR

3. # Author - Stockholm Fintech Report 2018
Co-author:
>> First Nordic Insurtech Review - Q1 2019
>> New wave of Fintech - Regtech and Insurtech Report
>> First Nordic Insurtech Review
>> The Rise and Development of FinTech, Accounts of Disruption from SE and
Beyond,
Head of Compliance - Cryptocurrency Brokerage - Safello.com
Contributor Forbes Magazine - Blockchain, Fintech, Crypto
Co-organiser: Stockholm Fintech Week
One of the coordinators: InnoBridge.tech
Researcher: Stockholm School of Economics + Executive Education
Previously:
# Head. Int. Financial Services - FundedByMe.com
# Country Head - FinTech Rocket Internet (Venture has been sold to ING)
# Trainer Securities Commission Malaysia
## Travel Book author (in the future :)
#GOOD TO SEE YOU
HQ Berlin

4. SOURCE: GLOBAL FINTECH TRENDS Q3 2018, CBINSIGHTS
# Artificial Intelligence and Robotic Process Automation
# Emerging of Insurtech companies
# Mobile Payments
# PSD 2 > API services
# Not ‘if’ but ‘how’ - will we work with Fintechs
# Smart contracts
# Regtech becoming mainstream
# Customers shifting to 'online only'
#INDUSTRY MACROTRENDS 2019
2019

5. SOURCE: GLOBAL FINTECH TRENDS Q3 2018, CBINSIGHTS
# Artificial Intelligence and Robotic Process Automation
# Emerging of Insurtech companies
# Mobile Payments
# PSD 2 > API services
# Not ‘if’ but ‘how’ - will we work with Fintechs
# Smart contracts
# Regtech becoming mainstream
# Customers shifting to 'online only'
#INDUSTRY MACROTRENDS 2019
2019

6. #ONE GOAL DIFFERENT PORTFOLIO OF SKILLS
OUR TEAM, BOARD MEMBERS AND ADVISORS HAVE CONTRIBUTED TO:
YOU?
+ SIX MEMBER AWAIT BOARD APPROVAL
YOU?
SELECTION OF EXPERIENCE:HEAD OF OFFICIAL INSTITUTIONS,
HEAD OF ASIA AND MIDDLE EAST
CHAIRMAN OF NORDIC REGTECH ASSOCIATION
FORMER CEO OF ‘INTERNATIONAL FORUM OF
SOVEREIGN WEALTH FUNDS
CIO OF CENTRAL BANK OF UAE.
(...)

7. #HOW TO WORK TOGETHER?
UNDERSTAND
THE PROBLEM
USE ACADEMIC
SOLUTIONS
DON'T INVENT
THE WHEEL AGAIN
SPEAK TO
INDUSTRY
EXPERTS
STHLM
SECRET
SAUCE
+TRUST
+TRANSPARENCY
+ LOW POWER
DISTANCE

8. #HOW TO WORK TOGETHER?
SOURCE: INSURTECH AUSTRALIA - ENABLER OR DISRUPTER?

9. #HOW TO WORK TOGETHER?
OF STARTUPS DISAGREE THAT TRADITIONAL PLAYERS
ARE DOING ENOUGH TO COLLABORATE WITH STARTUPS
SOURCE: INSURTECH AUSTRALIA - ENABLER OR DISRUPTER? (2019)
81%

10. Banks and Insurance companies don’t
communicate where Fintechs could
provide solutions.
This miscommunication in the market
means that we waste our innovation
potential because we are not able to
channel the noise into productive
innovation funnels.
HTTPS://WWW.FORBES.COM/SITES/MICHALGROMEK/2019/02/01/EXIT-INTERVIEW-WITH-A-FINTECH-REGULATOR-SWEDEN-
HAS-GIVEN-UP-TO-BE-THE-EUROPEAN-FINTECH-LEADER/#58778F4635CA (ACCESSED FEBRUARY 1ST 2019)
Stig Johansson, Former Head of Fintech at Fi.se
SOURCE: FORBES MAGAZINE, EXIT-INTERVIEW WITH
A FINTECH REGULATOR: SWEDEN HAS GIVEN UP TO
BE THE EUROPEAN FINTECH LEADER

11. #50+ INTERVIEWS AND 650+ PAGES OF REPORTS LATER
1. CONTACT - TO WHOM SHOULD WE SEND
THE COOPERATION PROPOSAL? CS?
SOURCE: OWN RESEARCH
WE HAVE DISCOVERED THE FOLLOWING (27) CHALLENGES
2. TIME - IT TAKES AROUND 20 MONTHS TO
COMPLETE A PARTNERSHIP
3. BLACK-BOX PROCESSES - STRUGGLE TO
UNDERSTAND THE INTERNAL
PROCESSES WITH A BANK
4. EXPECTATIONS - DEVELOPMENT,
STAGE NEEDED SOLUTIONS,
COMPLIANCE IMPLEMENTATION

12. Banks and Insurance companies
are willing to take the next steps.
It would be useful to find a way
to inform Startup about internal
processes as well as clarify the
expectation towards them (e.g.
development stage, needed
certificates, and proof of concept)Jason Coombes
Chief Operational Officer
at Zignsec (HQ in Stockholm)

13. #50+ INTERVIEWS AND 650+ PAGES OF REPORTS LATER
1. SOFTWARE LEGACY - OFTEN OUTDATED
CORE SYSTEM WITH LITTLE FLEXIBILITY
SOURCE: OWN RESEARCH
WE HAVE DISCOVERED THE FOLLOWING (57) -CHALLENGES
2. CONFUSING 'TECHNOLOGY' WITH 'SOLUTION'
REPLACING 'A' SYSTEM WITH 'B' SYSTEM
MIGHT RESOLVE THE PROBLEMS.
3. OPENNESS - WILLING TO ACCEPT NEW
SOLUTIONS, LESS PROACTIVE SCOUTING
4. PROVEN DEV PARTNERS - LACK OF TRUST TOWARDS
STARTUP, BUT WILLINGNESS TO ACCEPT NEW SOLUTIONS
WITHIN EXISTING SOFTWARE
TRADITIONAL
FINANCIAL
PROVIDERS
5. LACK OF COMMUNICATION WITH THE ECOSYSTEM -
ABOUT NEEDED SOLUTIONS, COMMUNICATION MOSTLY
WITHIN THE INSTITUTIONS AND CONSULTING COMPANIES

14. #82+ REVIEWED COOPERATION METHODS INTERNATIONALLY
WITH A FOCUS THE 'INCUMBENTS <> STARTUPS' RELATION

15. #82+ REVIEWED COOPERATION METHODS INTERNATIONALLY
AND INVESTIGATED WHAT DIDN'T WORK

16. #PROPOSED SOLUTION V. 1.69 -
SMOOTH USER EXPERIENCE SIGNIFICANT
AMOUNT OF
COMPLEXITY
INVISABLE FOR
THE USER
STHLM
SECRET
SAUCE
FOLLOWING BEST PRACTICES IN USER EXPERIENCE:

18. #PROPOSED SOLUTION V. 1.69:
STHLM
SECRET
SAUCE
BUILDING INNOVATION BRIDGES IN THE ECOSYSTEM - INSURTECH
.tech
TRADITIONAL FINANCIAL
PROVIDERS
USE THE NON-FOR PROFIT
TO RESOLVE PROBLEMS
CALL FOR
INNOVATION
TIME FOR STARTUPS
TO SEND IN PROPOSALS

19. #PROPOSED SOLUTION V. 1.69:
STHLM
SECRET
SAUCE
BUILDING INNOVATION BRIDGES IN THE ECOSYSTEM - INSURTECH
SOPHISTICED DUE
DILLIGENCE AND
SUPPORT PROCESS
DEV. REVIEW
PRODUCT & MARKET FIT
COMPLIANCE
MARKETING ETC
SECURE'
PROOF
STAMP
FROM TRUSTED
PROVIDERS
POSSIBLE INCORPORATION
INTO THE CORE SYSTEMS( )

20. RESULT:
STHLM
SECRET
SAUCE
BUILDING INNOVATION BRIDGES IN THE ECOSYSTEM
STARTUPS WILL RECEIVE THE SUPPORT THEY NEED IN
ORDER TO BE CONNECTED TO LARGE ENTITIES POSSIBLE
VIA CORE SYSTEMS
THE EFFICIENCY IN THE ECOSYSTEM WILL INCREASE
SECURLY - POTENTIALLY CLOSING THE GAPS BETWEEN
'TOP DOWN' AND 'BOTTOM UP' INNOVATION MATRIXES.
TRADITIONAL FINANCIAL PLAYERS WILL BE ABLE TO
DECIDE AND IMPLEMENT INNOVATION IN A SECURE
AND EFFICIENT WAY
CHOICE OF PARTNERS (PENDING)COMPLETE PARTNERS AND SKILLS FOR THE
MINIMUM VIABLE PRODUCT (MVP)

21. "We can not expect different result from
repeating our behaviour that didn't work in
the first place."
When nothing goes right - go left."
Stay connected:
friends@innobridge.tech
Non-for profit

22. DEFINING POTENTIAL
COLLABORATION MODELS
BETWEEN FINTECHS AND
TRADITIONAL PLAYERS
MICHAL GROMEK
STHLM FINTECHWEEK
FEBRUARY 11TH 2019