Post on 23-May-2020
Fintech – Open Lecture – 21.02.2020
João Freire de Andrade Portugal Fintech
Agenda:
1. Introduction
2. What to expect from the course
3. What is Fintech?
4. Key thematic areas
5. Pitch Deck
6. New Banking Reality
7. Technology recreating the
Financial Sector
Introduction
Introduction
4
What to expect from the course
Motivation
6
Motivation
7
ARTIFICIAL
INTELLIGENCE
AUTOMATION OF
JOBS
VS.
HUMAN
AUGMENTATION
Motivation
8
Content
9
Content
10
S U P P O R T T H E E C O S Y S T E M
The F in tech House
S U P P O R T T H E E C O S Y S T E M
The F in tech House
What is Fintech?
What is Fintech
16 Links to documents: The articles with more academic references according to Google Scholar, at 31-12-19.
[…] it is concluded that Fintech is a new financial industry that applies technology to improve financial activities.
Definitions from the Academia
FinTech covers digital innovations and technology-enabled business model innovations in the financial sector. Such innovations can disrupt existing industry structures and blur industry boundaries, facilitate strategic disintermediation, revolutionize how existing firms create and deliver products and services, […].
“FinTech”, a contraction of “Financial technology”, refers to technology enabled financial solutions. It is often seen today as the new marriage of financial services and information technology. However, the interlinkage of finance and technology has a long history […].
What is Fintech
17
Definition: Summary
• Contraction of “Financial technology”.
• Technology-enabled business model innovations.
• Has a long history.
• Facilitate strategic disintermediation.
• How existing firms create and deliver products and services.
• Applies technology to improve financial activities.
• Ideas could also lead to new business models or even new
businesses.
• Used on computers and, increasingly, smartphones.
• Advancements include the use of Big Data, artificial intelligence
(AI), and machine learning.
• Startup or a company.
• Challenging the market dominated by the big incumbent players.
• Described as “disruptive”.
• Independently of the nature or size of the player that is providing
the service.
What is Fintech
18
Fintech is using technology for finance.
Is the transformation technology is bringing to finance and
it is much more than just the fintech startups ( which are
also part of the fintech ecosystem). Banks, e-commerce,
asset manager, insurers, etc.
History and context
What is Fintech
19
Major Areas
Fintech Trends
20
Fintech Startups’ relation with the main stakeholders in the ecosystem
B2C
B2B
Regulation
Incumbents
Clients
Regulators
Fintechs
Investors
Talent
Infrastructure
Legal Firms
Consulting firms
• E-commerce • Makert places • Content producers
Drivers and Trends
Fintech Trends
22
Fintech Trends
23
Fintech Trends
24
The world has changed. In 5 years the smartphone financial applications are
now dominated by Fintechs.
Fintech Trends
25
Fintech Trends
26
Alibaba surpasses the AUM’s of J.P. Morgan
Drivers
Major Drivers for the Fintech Revolution
• Trust: Financial Sector Image ( Crisis and Prices).
• Talent: Leaving BiG banks, entering fintechs.
• Demography: More and more digital natives.
• Technology:
• Cloud Computing ( 2006): frees financial providers from having
fixed-location IT/ comoputing / data services. No legacy systems.
• Smartphones ( 2007): free the users from having go move.
• Blockchain ( 2008): frees both users and providers from having
multiple ledgers of transactions / records / contracts.
27
Drivers
Talent: Leaving BiG banks, entering fintechs.
28
Drivers
Demography: More and more digital natives.
29
Drivers
Cloud Computing ( 2006)
30
Drivers
Cloud Computing ( 2006) – enable the use of data
31
Drivers
Smartphones ( 2007):
32
People are really moving mobile:
• More than 50% of digital media consumption accounts for
mobile apps;
• Ninety percent of the time smartphone users spend on their
mobiles goes to mobile apps;
• A typical user has about 30 apps installed on his mobile and
spends more than 35 hours a month using them;
• Forty-two percent of the mobile purchases were completed from
mobile apps;
• 2bi Unbanked, but 1 Bi has smartphone.
Drivers
Smartphones ( 2007):
33
Key thematic areas
Key thematic areas
35 Source: MiT Fintech Course
Key thematic areas – Infrastructure
36
Content
38
Infrastructure
Privacy
Identity
Security
Systems
Key thematic areas – Money and Payments
39
Key thematic areas – Money and Payments
40
Definition:
History and evolution of payment methods: Link
A payment is the trade of value from one party (such as a person or company) to another for goods, or services, or to fulfill a legal obligation.
Key thematic areas – Money and Payments
41
Definition:
The Payment Cards’ value chain: Core stakeholders and value-added service providers
Key thematic areas – Money and Payments
42
Definition: A fragmented Market
Key thematic areas – Money and Payments
43
Definition: A fragmented Market
Key thematic areas – Market Places
44
Key thematic areas – Market Places
45
Exploring: Non-traditional capital raise
Crowd Funding
Key thematic areas – Market Places
46
Exploring: Non-traditional capital raise – Segmentation of Alternative Lenders
Key thematic areas – Market Places
47
Examples:
Equity crowdfunding case studies: Link
Key thematic areas – Market Places
48
Examples:
Key thematic areas – Market Places
49
Examples:
Key thematic areas – Financial Markets
50
Key thematic areas – Financial Markets
51
Exploring Automated advice ( Robo-Advisor):
• Automated advice ( Robo-Advisor): Artificial Intelligence has allowed
mass market have access for an affordable price investment advice.
52
Exploring Automated advice ( Robo-Advisor):
Key thematic areas – Financial Markets
53
Exploring Automated advice ( Robo-Advisor):
Key thematic areas – Financial Markets
Key thematic areas – Financial Markets
54
Exploring:
• Social Trading: Allows investors to copy in real time traders or decision-
making groups actions.
Types of Innovation
Types of Innovation
56
Definition:
Disruptive innovation encompasses any innovative
concept, product and service that create new markets
by applying new sets of rules, values and models which
ultimately disrupt and/or overtake existing markets by
displacing earlier technologies and alliances.
Source: European Commission.
Types of Innovation
57
Definition:
Innovation is not necessarily effective due to a singularly
ground-breaking product or even new technology, but
through the fundamental change in the way the
company does business.
Eg: Although Blockchain is revolutionary, the
corresponding logic of value creation, capture and
delivery enables its disruptive potential.
Eg: Banks typically call innovation, “a new app” or
something similar.
Types of Innovation
58
Better vs Different
Better, cheaper and faster:
This types of innovation as a
known customers and what
they are demanding. Knows
the competitors and their
prices. It is about the better
service and price, less
unknown factors means
higher CAC, demands an
high initial investments. Re-
bundling is a possible way of
increasing the value.
Better Traditional competition
Known demand
Known business models
High CAC ( Customer Acquisition Cost)
Low profit, capital intensive
Types of Innovation
59
Better, cheaper and faster
This type of players are unbundling every incumbent’s core activities and every
startup is doing that specific feature very “better, faster and cheaper”
Types of Innovation
60
Better, cheaper and faster
1. Customer Acquisition is very expensive, you have low revenues since you are
fighting on tight margins.
2. But the example of Amazon “unbundling” and re-bundling with “books,
electronics, groceries” could be a way.
Types of Innovation
61
Examples
Foreign Exchange: • Transfer Wise • Azimo • World remit
Pre-paid card: • Revolut • Loot • Neat • Tide
Payments: • Apple or android pay • We chat pay
Types of Innovation
62
Better vs Different
Type of Innovation: Different:
Unknown demand, unknown
business model, little
competition. Incredible growth
or zero growth, if it doesn’t
work. It is very binary. It
means an higher risk/ reward
type of innovation.
Different Real Disruptive innovation
Unknown demand
Unknown business models
Really hard to forecast future growth, and impact.
Types of Innovation
63
Better vs Different
Incremental thinking is more natural. It will be what ( typically) incumbets do but it has almost neutral value. Neighter “better” innovations nor “different” are an incremental type of innovation.
Types of Innovation
64
Better vs Different
Disruptive thinking is harder but can bring more impact:
Types of Innovation
65
Better vs Different
Disruptive thinking is harder but can bring more impact:
Types of Innovation
66
Better vs Different
Disruptive thinking is harder but can bring more impact:
Types of Innovation
67
Better vs Different
Disruptive thinking is harder but can bring more impact:
Types of Innovation
68
What is disruptive in finance now:
Blockchain, the internet of Value: The technology is still in the stage of R&D. It is like the begging of the internet. Disintermediation: P2p lending and crowdfunding. Data: This might be the future of finance, of course, with lots of ethics and privacy issues. Eg: Alibaba created a credit score, that take information from you, your friends, what you are socially doing.
Pitch Deck Creation
• Single source of all information
made available to the investors
• Supporting material for the
investment analysis and
decision
• Clear and detailed content,
describing the startup’s main
characteristics, business model
and competitive advantages
• Main promotion vehicle of the
startup next to potential
investors
Why is it important?
70
Pitch Deck
The structuring and development of the Pitch Deck and Business Plan will be
of key importance and the basis of future analysis and decision by potential
investors
• Supports the Pitch Deck
• Critical to quantify objectives
and set goals
• Fundamental tool for startup
founders and potential
investors, allowing the
validation of assumptions and
business model
• Supporting tool to justify the
amount to be raised in the
investment round
Business Plan
Pitch Deck content
I. Mission Statement
II. Problem / Market gap
III. Market size
IV. Product / Service overview
V. Product / Service features
VI. Competitive advantage
VII. Business model
VIII. Team
IX. Traction / Achievements
X. Investment
XI. Milestones
XII. Appendix
71
I. Mission Statement
• What is the startup purpose and objectives?
• What is the founders‘ vision and mission?
• It is important to start the Deck with an immediate statement of the vision and mission of the startup
in order to provide the necessary background to the envisaged investment round.
>>> Investors should be able to understand immediately, from slide 1, the startup’s sector of
activity and what aims to solve or deliver.
Examples:
72
• To allow every SME to manage their FX risk in just 5 daily minutes
• We want to bring online traditional offline banking services and help consumers to
find the best banking offers
• Our goal is to democratize the access to renewable energy, offering a low-cost
solution to every household
FOCUS: Target client, Sector,
Solution
II. Problem / Market gap
• What is the start-up target market?
• What does the market work currently and what are the main problems identified.
• Present the startup products / services as the solution to the identified problems.
73
SUPPL
Y
DEMAN
D MARKET GAP
• #1
• #2
• #3
SOLUTION
Startup
1. Define markets (ex. countries or sector / segments)
2. Estimate market value (ex. Use market reports produced
by consultants)
3. Obtain total market / sector transaction volume (ex.
divide market value by the average sales price of the
product / service in the market)
Market #1 Market #2
Total Market Service (€ M) 100 1.500
Average Price Service (€) 0,3
Total Volume Transacted Service (million) 333 5.000
III. Market size
• Once identified the market gap / problem to solve, it is necessary to estimate the market size of that
market.
• An estimation of the market size is key to understand the company’s growth potential and
investment return.
• The market size is equally relevant for the elaboration of the Business Plan and to understand the
limits of the business model and its viability.
• Nevertheless, it is important to work with realistic figures; large figures may discredit the Business
Plan.
74
Estimating market size
ILLUSTRATIVE
IV. Product / Service overview
• Explain product / service
• To whom is the product directed?
• Solves what?
• Graphical and descriptive presentation of the service / product.
• By now, it should be absolutely clear to the potential investors what is the product / service of the
product.
Examples:
75
Airbnb
Seed ($ 600k, 2009)
Pendo
Serie B
($20M,
2016)
V. Product / Service features
• Description of the products / services’ features.
• Graphical presentation or in table.
• All features should be clearly indicated in order to ease any comparison with competitors’ similar
services that the investor may wish to do.
Examples:
76
Feature Product #1 Product #2
#1 xx xx
#2 xx xx
#3 xx xx
#4 xx xx
Product
#1
Product
#2
Features
• xx
• xx
• xx
Features
• xx
• xx
• xx
ILLUSTRATIVE ILLUSTRATIVE
VI. Competitive advantage
• “Why is the featured product / service better than the competition?”
• Highlight the advantages of product / service vs. competitors.
• This analysis is important to prove the startups’ deep knowledge regarding its market and the peers
products / services.
Examples:
77
Feature Startup Peer #1 Peer #2 Peer #3 Peer #4
#1
#2
#3
#4
ILLUSTRATIVE
VII. Business model
• Explain the business model.
• What is the revenue model and forecasted gross margin?
• Breakdown the business model in product / service, market and client segment.
Examples:
78
Client /
Product
#1
Client /
Product
#2
Subscription fee €xx
Transaction fee xx%
Gross margin xx%
Subscription fee €xx
Transaction fee xx%
Gross margin xx%
Client /
Product
#3
Subscription fee €xx
Transaction fee xx%
Gross margin xx%
ILLUSTRATIVE
VIII. Team
• Introduce the team / founders that are backing the startup.
• Highlight their experience and execution capacity.
• Simple and direct description.
• Define role for each team element and add any additional relevant information regarding a possible
advisor.
Examples:
79
Crew
Seed
($ 2M,
2012) Airbnb
Seed ($ 600k, 2009)
IX. Traction / Achievements
• Opportunity to prove to the potential investors the execution capabilities of the startup / team.
• Fundamental to present evidence of traction to increase investors’ confidence regarding the
investment in the startup.
• If applicable, present figures / data to support traction evidence (sales evolution, number of users,
number of customers, etc.).
• Explain where you are: from starting point and what you have achieved so far.
Examples:
80
Crew
Seed
($ 2M,
2012)
Buffer
Seed ($ 500k, 2011)
X. Investment
• What is the amount to be raised from potential investors?
• Do not reveal the stake you are willing to give out in exchange for the investment!! This is
part of the negotiation process
• Describe and detail the use of funds:
o Marketing
o Human resources
o Capex / investment on equipment; etc…
• “What are our goals and what do we want to achieve once we are funded?” Important to set goals
and clear milestones regarding number of user, sales, new markets, etc.
Examples:
81
Airbnb
Seed ($ 600k, 2009)
XI. Milestones
• Define roadmap for the use of funds raised, with clear milestones.
Examples:
82
M1 M2 M3 M4 M5 M6 M7 M8 M9 M1
0
…
New server
Payment system
Security
System
Digital Marketing
Business
Development
DevOps
Number of
employees 5 5 5 7 7 8 8 8 8 10 10
…
ILLUSTRATIVE
Appendix
• The appendix should include all additional information that may be considered relevant to the
investment decision making process.
• Example of information to include follows below:
o Business Plan summary
o Revenue assumptions
o Costs assumptions
o Competitive landscape
o Exit strategy
83
Appendix – Business Plan
summary
84
ILLUSTRATIVE
Business Plan Summary
Euro 1 2
Revenue 5.443.089 14.403.090
COGS 4.626.626 12.242.626
Gross Margin (%) 15,0% 15,0%
Gross Profit 816.463 2.160.463
0 0
Employee expenses 233.017 429.799
SG&A 42.583 57.400
Sales & Marketing 128.400 128.400
Operating result 412.463 1.544.865
Operating margin (%) 7,6% 10,7%
Year
Appendix – Revenue assumptions
(1/2)
• Bottom-up method: projection of sales considering the maximum production capacity and the
number of clients acquired in certain moment, assuming the sale of a set of products / services at
determined price.
85
ILLUSTRATIVE
Bottom-up Method
Sales volume - Base Scenario
units 1 2 3 4 5 6 7 8 9 10 11 12
Client Segment A
Number of clients 1 1 1 3 3 3 3 3 3 3 3 3
Sales volume per client 1.000 1.001 1.002 1.004 1.005 1.006 1.007 1.009 1.010 1.011 1.012 1.014
Total sales volume 1.000 1.001 1.002 3.011 3.015 3.019 3.022 3.026 3.030 3.034 3.037 3.041
Client Segment B
Number of clients 1 1 1 3 3 3 3 3 3 3 3 3
Sales volume per client 3.000 3.004 3.007 3.011 3.015 3.019 3.022 3.026 3.030 3.034 3.037 3.041
Total sales volume 3.000 3.004 3.007 9.034 9.045 9.056 9.067 9.079 9.090 9.101 9.112 9.124
Client Segment C
Number of clients 1 1 1 3 3 3 3 3 3 3 3 3
Sales volume per client 5.000 5.006 5.012 5.019 5.025 5.031 5.037 5.044 5.050 5.056 5.062 5.069
Total sales volume 5.000 5.006 5.012 15.056 15.075 15.093 15.112 15.131 15.150 15.168 15.187 15.206
Total
Number of clients 3 3 3 9 9 9 9 9 9 9 9 9
Total sales volume 9.000 9.011 9.022 27.101 27.134 27.168 27.202 27.236 27.269 27.303 27.337 27.371
Month
Appendix – Revenue assumptions
(2/2)
• Top-down method: sales projections result from the company’s capacity to capture a share of the
value of the target market.
86
ILLUSTRATIVE
Sales Volume - Base Scenario
1 2 3 4 5 6 7 8 9 10 11 12
Target Market SaaS 20 20 20 20 20 20 20 20 20 20 20 20
Capture rate (%) 0,5% 0,5% 0,5% 1,0% 1,0% 1,0% 1,5% 1,5% 1,5% 2,0% 2,0% 2,0%
Target Market Hardware 12 12 12 12 12 12 12 12 12 12 12 12
Capture rate (%) 0,5% 0,5% 0,5% 1,0% 1,0% 1,0% 1,5% 1,5% 1,5% 2,0% 2,0% 2,0%
Allocation SaaS 62,5% 62,5% 62,5% 62,5% 62,5% 62,5% 62,5% 62,5% 62,5% 62,5% 62,5% 62,5%
Allocation Hardware 37,5% 37,5% 37,5% 37,5% 37,5% 37,5% 37,5% 37,5% 37,5% 37,5% 37,5% 37,5%
Breakdown %
€ million
Month
Appendix – Cost assumptions
87
ILLUSTRATIVE
Employee expenses
Euro 1 2 3 4 5 6 7 8 9 10 11 12
CEO 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874
CTO 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874 1.874
Dev Ops 6.070 6.070 6.070 6.070 6.070 6.070 6.070 6.070 6.070 6.070 6.070 6.070
Security Engineer 0 0 0 0 3.035 3.035 3.035 3.035 3.035 3.035 3.035 3.035
Business Developer 4.329 4.329 4.329 4.329 4.329 4.329 10.823 10.823 10.823 10.823 10.823 10.823
[staff #1] 0 0 0 0 0 0 0 0 0 0 0 0
[staff #2] 0 0 0 0 0 0 0 0 0 0 0 0
[staff #3] 0 0 0 0 0 0 0 0 0 0 0 0
Employee expenses 14.148 14.148 14.148 14.148 17.183 17.183 23.677 23.677 23.677 23.677 23.677 23.677
SG&A
Euro 1 2 3 4 5 6 7 8 9 10 11 12
Servers 200 200 200 200 200 200 200 200 200 200 200 200
Rent 480 480 480 480 560 560 800 800 800 800 800 800
Insurance 120 120 120 120 120 120 120 120 120 120 120 120
Equipment 500 500 500 500 583 583 833 833 833 833 833 833
Licenses 50 50 50 50 58 58 83 83 83 83 83 83
Staples 120 120 120 120 140 140 200 200 200 200 200 200
Cleaning and maintenance 120 120 120 120 140 140 200 200 200 200 200 200
Accounting, legal, other 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500
SG&A expenses 3.090 3.090 3.090 3.090 3.302 3.302 3.937 3.937 3.937 3.937 3.937 3.937
Sales & Marketing
Euro 1 2 3 4 5 6 7 8 9 10 11 12
Conferences / fairs 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000
Transportation 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500
Marketing material 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000
Travel stay 600 600 600 600 600 600 600 600 600 600 600 600
Digital Marketing 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000
PR 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500
Communication 100 100 100 100 100 100 100 100 100 100 100 100
Sales & Marketing expenses 10.700 10.700 10.700 10.700 10.700 10.700 10.700 10.700 10.700 10.700 10.700 10.700
Month
Month
Month
Appendix – Competitive landscape
88
Peer Year of
foundation
Funding Strengths Weaknesse
s
#1
#2
#3
#4
…
ILLUSTRATIVE
Appendix – Exit Strategy
89
ILLUSTRATIVE
Strategic
incumbent
Strategic
challengers
Private Equity IPO
Quem?
Porquê
?
Potential buyers
Finance in Entrepreneurship
90
Be Lean, Don’t Burn
Finance in Entrepreneurship
91
Investors Economics
Valuing Pre-revenue Companies: Link
Technology recreating the Financial Sector
Technology recreating the financial sector
93
The impact of technology
Technological advances that improve production efficiency will shift a supply curve to the right. The cost of production goes down, and consumers will demand more of the product at lower prices. Computers, televisions and photographic equipment are good examples of the effects of technology on a supply curve. AI and DLT applied to the financial in the right use case have the same effect.
Technology recreating the financial sector
94
DLT context: Technologies influencing the Financial Sector
DLT is one of many transformative new technologies that will shape the future financial services infrastructure and should be seen as part of a toolbox.
Technology recreating the financial sector
95
Technologies influencing the Financial Sector: Mutually reinforcing.
Emerging technologies are mutually reinforcing, and the abilities of any one new technology are influced by its interactions with other technologies. Example: AI will enable increasingly complex and automated smart contracts to be executed, increasing the use-cases of blockchain. Cloud will provide both the data storage and the processing power necessary to train new AI models.
Technology recreating the financial sector
96
Technology priorities for 2020 in the financial services
1 Update your IT operating model to get ready for the ‘new normal’ 2 Slash costs by simplifying legacy systems, taking SaaS beyond the cloud, and adopting robotics/AI 3 Build the technology capabilities to get more intelligent about your customers’ needs 4 Prepare your architecture to connect to anything, anywhere 5 You can’t pay enough attention to cyber-security 6 Make sure you have access to the necessary talent and skills to execute and win
New Banking Reality
Classic banking business
98
A bank
A bank is a financial
institution that accepts
deposits from the public
and creates credit. Lending
activities can be performed
either directly or indirectly
through capital markets.
Due to their importance in
the financial stability of a
country, banks are highly
regulated in most
countries.
Classic banking business
99
Current Status: The crisis
Classic banking business
100
Current Status: The crisis
Classic banking business
101
Current Status: Disruption
The layers of banking
The layers of banking
103
Current State:
The horizontal layers can be defined in two major layers, the Infrastructure layer (commonly called “White Label Bank”) and the front end layer (commonly called “Neo Bank”).
The layers of banking
104
Current State:
Etc.
Bundlers ( PFM's)
CreditWealth
SolutionsTransfers
The layers of banking
105
Current State:
The layers of banking
106
MB WAY CASE
Open Banking
Open Banking
108
Definition:
White Label banks are financial institutions which use their banking license and their systems to allow brands and new providers to get into the banking market quickly. These new providers of banking services offer their customers branded banking services that are actually supported by the white label bank.
Open Banking
109
Open Banking:
External
Frontend 1
External
Frontend 2
External
Frontend 3Frontend
CreditWealth
SolutionsTransfers Etc.
Open
Infrastructure
The open banking is a situation that improves the banks in several vectors: Profitability: Banks can easily “on board” new products, which means new revenue streams . Costs: By opening the banking infrastructure to third parties, the bank is monetizing a sunk cost that was created to its own operations. Adaptation: With a standard development process it is easier to adapt to new reality by integrating external solution or even internal developments. Attraction: By providing an open infrastructure the bank can attract talent to co-create solutions to different problems of the customers.
Open Banking
110
Example: Solaris Bank
Neo-Bank’s
Neo-Bank’s
112
Definition:
Neo banks, which actually don’t possess a banking license, act as an
interface, mainly in the form of a mobile app, and rely on traditional banks to
provide the bank services, from the issuance of debit cards to saving the
customers’ funds. This type of institutions focus on providing a revolutionary
user experience that goes far beyond of what its standard in the industry. As
the majority of them are branchless and very tech-savvy, they have been
edging their flexible structure and low operating costs to rapidly expand into
new markets and/or provide new services.
Challenger banks are very similar to neo banks in terms of the value
proposition that they offer, but unlike neo banks, they have a banking license.
That gives them an advantage over neo banks as they have greater degree of
flexibility on the rates and services that they can offer.
Big players main figures
Neo-Bank’s
114
Sector Figures: Global Downloads
Neo-Bank’s
115
Sector Figures: Funding
Neo-Bank’s
116
Sector Figures: Deposits
Neo-Bank’s
117
Sector Figures: Neo-Banks inside the +1M customers Fintechs
Examples: Details & Differentiation
Neo-Bank’s
119
Number 26:
Neo-Bank’s
120
Growth
Tech Giants & GAFA Banking
121
Future State: Google Banking Mock-ups tests
Micro-advice Recent transactions Running queries
Tech Giants & GAFA Banking
122
Current State:
GAFA Banking
123
Current State:
Amazon’s strategy in financial services has been focused on supporting its
core strategic goal: increasing participation (both from buyers and sellers)
on its platform.
GAFA Banking
124
Current State:
Facebook is pulling away
from its ambitions to provide
peer-to-peer money transfers
via Messenger in Europe.
Tech Giants & GAFA Banking
125
Current State: In the Mobility space
• Lyft is offering several perks to drivers to be competitive with Uber and other ride-hailing platforms.
• The financial services offering includes a free checking account and a debit card.
• The debit card offers some compelling rewards including 4% cash back at restaurants, 2% on gasoline and 1% on groceries.
• The issuer is Stride Bank, NA, a $660 Million asset-sized bank in Oklahoma.
Fintech and the emerging markets
Fintech and the emerging markets
127
Introduction
McKinsey & Company calculates a wide range of potential gains, that could be captured by 025, such as: 1. Boosting global GDP by US$3.7 trillion 2. Liberating US$4.2 trillion in new deposits 3. Extending US$2.1 trillion in additional loans 4. Reducing government leakage by US$110 billion.
Fintech - Financial Markets
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Fintech and the emerging markets
Fintech and the emerging markets
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Introduction
Re-Creating the financial sector:
Fintech and the emerging markets
131
Case Study- Africa: M-Pesa
https://www.youtube.com/watch?v=nEZ30K5dBWU
Fintech serving Investors?
Field for content.
Fintech and the emerging markets
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Case Study- Africa: M-Pesa
Fintech – Financial Markets Fintech and the emerging markets
Fintech – Market Places Fintech and the emerging markets
Fintech – Em Moçambique Fintech and the emerging markets
Fintech – Em Moçambique Fintech and the emerging markets
40 microinsurance
& mobile Health
produc
Fintech serving the UN’s Sustainable Development Goals (SDG’s).
Fintech and the emerging markets
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UN’s Sustainable Development Goals (SDG’s)
Fintech and the emerging markets
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UN’s (SDG’s) | ACRE AFRICA: Crop insurance
Fintech and the emerging markets
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UN’s Sustainable Development Goals (SDG’s)
BIMA
M-PESA
SOMA