The Impact of Fintech June 2018 - Macrosource Media...THE IMPACT OF FINTECH ON FINANCIAL SERVICES...

Executive Summary

Industry Overview Pg 1Introduction Market Scope

Market Drivers Pg 3Dynamic Consumer Behaviour and PreferencesUptake of Digital and Mobile DevicesOther Technological DevelopmentsBanks Embrace the Digital Customer ExperienceTapping the Potential of BlockchainAsian Fintech Investment Continues to Grow

Applications Pg 6PaymentsOnline Marketplace LendingRobo-AdvisorsEquity Crowd-funding

Challenges And Opportunities Pg 9Banks Face Challenges but also Opportunities in Digital TransformationFinTech Can Lower Costs

Large Players To Watch Pg 10American Express Company (NYSE: AXP)Global Payments Inc (NYSE: GPN)MasterCard Inc (NYSE:MA)PayPal Holdings Inc (NASDAQ: PYPL)Visa Inc (NYSE: V)Fiserv (Nasdaq: FISV)Tencent Holdings (SEHK: 700)Vantiv (now called Worldpay Inc.) (NYSE: WP; LSE: WPY)Ant Financial (private)

Mid-Sized Players To Watch Pg 29LendingClub Corporation (NYSE: LC)Nets A/S (CPSE: NETS)Aeon Financial Service Co (TYO:8570)Myob Group Ltd (ASX: MYO)ACI Worldwide (Nasdaq: ACIW)

Small Players To Watch Pg 39Futurefuel.io (private)WiseBanyan (private)Lufax (private)Atom Bank (private)AlphaPoint (private)

Key References Pg 44

TABLE OF CONTENTS June 2018

EXECUTIVE SUMMARYThe financial services industry has undergone major changes since the 2008 financial crisis, with most traditional firms, especially those in the banking industry, embracing technology to improve efficiency and streamline business operations. The growth of internet connectivity, broadband speeds and the rapid adoption of mobile devices like smartphones by consumers has also significantly changed consumer behaviour and customer expectations.

In addition, lower barriers to entry to the financial services industry, access to venture capital funding and technological advancements in respect to niche areas like payment technologies has helped merge the financial services and technology spaces, giving rise to FinTech.

The FinTech industry has created a new market for large as well as start-ups technology firms and created new challenges for existing financial institutions. By using technology to speed up financial service delivery, FinTech has improved the way information is collected, managed and to improve the efficacy of a range of financial services products and services. FinTech has become more than a niche market but is evolving into a significant market opportunity and is posing a major challenge to financials services providers globally.

Investing in digital innovation is critical for both FinTech companies and financial institutions to meet changing customer demands in a globalizing world. Digital disruption has changed the competitive landscape by lowering the barriers to entry for new players and created new business models.

With start-ups mushrooming, driving innovation and new initiatives across the lending, credits card and payments markets, existing institutions will continue to be challenged. The threat to their profitability and business models is only likely to accelerate as start-ups gain scale and market penetration. Therefore, partnering with and sourcing capability from FinTech companies is becoming an increasingly important part of the strategic response for established financial institutions.

THE IMPACT OF FINTECH ON FINANCIAL SERVICESMARKET REPORT

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Senior Analyst Garvit BhandariContact Details [email protected] by Macrosource Media Pty Ltd©Macrosource Media 2018www.macrosourcemedia.comISSN: 2206-4052

THE IMPACT OF FINTECH ON FINANCIAL SERVICES

March 2018

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INDUSTRY OVERVIEW

Introduction

FinTech is a rapidly accelerating trend in the financial services industry. In simple terms, FinTech is defined as computer programs, software and other technology that supports, facilitates or delivers both banking and financial services. Also referred to as financial technology, FinTech merges technology and financial services and is being adopted not only by start-ups but also large established institutions companies for the creation, management and the delivery of financial services. FinTech is being applied to most segments of financial services, from insurance brokering to accounting to banking and payments. The mobilization of technology helps maximizes market opportunities, providing better customer experiences and creating new revenue streams. Services like cloud storage and database analytics have changed consumer expectations and behavioural patterns and, with consumers now more comfortable in managing their money and business online, big banks, finance and accounting firms, as well as e-commerce firms are now employing FinTech across their organisations. The trend is heightening the need to make services simpler, easier, faster and safer.

Market Scope

Start-ups: Seizing the Opportunities The FinTech newcomers comprise large established companies, such as Apple, Google, Paypal, Square and Intuit, which have employed new technologies and innovation to compete with traditional financial institutions and intermediaries to deliver financial services, as well as smaller start-ups. FinTech companies are bypassing the typical technological and regulatory constraints of the larger financial institutions to deliver more efficient services, both with financial institution partners, as well as consumers directly. As a result, a vast amount of funding has been pouring into the sector. FinTech continues to attract VC funding. After a robust 2017, the first three months of 2018 saw VC-backed FinTech firms raise more than $5 billion. The first quarter of 2018 also saw the birth of few unicorns in the space such as Affirm and Ui Path. During the quarter, Affirm raised ~$200 million at a valuation of nearly $2 billion. While Ui Path raised $153 million in Series B funding, pushing its valuation to more than $1.1 billion. VC funds deployed ~$16.6 billion across 1,128 fintech companies in 2017. There were 35 mega-rounds of $100+ million investments to established fintech companies. While Asia dipped, Europe saw funding grow 121% year-over-year and the US hit a new annual high. Coinbase entered the unicorn club raising funding at a $1.56 billion valuation, while alternative lender Prosper, previously valued at $1.77 billion, raised a funding round at a lower valuation of $550 million. North America accounted for ~45% of the global VC funded FinTech deals. Payments and lending are the biggest areas of development in FinTech, specifically in countries with large population of unbanked individuals. Countries like India and Brazil, for example, continue to see payments and lending models as key avenues for FinTech growth. However, in the more mature FinTech markets, particularly the US, investors are increasingly becoming hesitant to invest in payments and lending platforms given the proliferation of such offerings over the past 24 months. US continues to be the main global hub leading the FinTech revolution. For 2017, US FinTech companies received investment of $7.8 billion. Asia was second with $5.8 billion in funding, while Europe attracted a capital of $2.7 billion. In 2017, Asia saw 11 $100+ million deals with the majority from China. North America saw 20 $100+ million deals in 2017. In 2017, eight VC-backed fintech companies notched up valuations of more than $1 billion.


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The global FinTech M&A for 2017 produced 336 transactions for a total of $18 billion in associated deal value. Consolidation remains the main driver of overall fintech M&A, as financial services companies look to acquire new technologies in the face of stiff competition from nonfinancial services startups. The launch of PSD2 in Europe in January 2018, which is loaded in favor of consumers, is likely to put further pressure on the bottom lines of banks and, as such, financial services firms are embracing new technologies to boost efficiencies and improve customer service. The B2B market remains a key focus for VC investors. B2B FinTech companies such as payments platforms, SME lending platforms and SaaS solutions aim to make back office processes more efficient and effective, which remains a priority for FinTech investors. FinTech poses an enormous challenge to incumbent financial institutions, attacking their customer bases and offering services that traditional banks have been slow to offer. Non-card transactions, alternative payment service providers, contact less technology, mobile wallets, and real-time payments have become the major drivers in the payments segment and, with smartphone usage continuing to rise, particularly in under-developed markets, new market entrants are likely to continue to take market share from large institutions that are too slow to adapt. Forming alliances will be key for them, as start-ups have the knowledge, the technology and the adaptability to get new services off the ground quickly. While incumbent financial institutions have the customer bases and the capital, they are also encumbered with regulatory burdens, entrenched workplace cultures, a lack of knowledge capital and sometimes an inability to mobilize capital. FinTech companies have a huge challenge in front of them though, needing to adapt to a fast-changing market, develop technology that suits niche customer segments and at the same time provide a return on investment for investors. The smaller players are nevertheless outsiders in a very big and powerful industry and are throwing down the gauntlet. Investing in digital innovation is critical for both FinTech companies and financial institutions to meet changing customer demands in a globalizing world. Digital disruption has changed the competitive landscape by lowering the barriers to entry for new players and created a new business models. With start-ups mushrooming, driving innovation and new initiatives across the lending, credits card and payments markets, existing institutions will continue to be challenged. The threat to their profitability and business models is only likely to accelerate as start-ups gain scale and market penetration. Therefore, partnering with and sourcing capability from FinTech companies is becoming an increasingly important part of the strategic response for established financial institutions. There are distinct economies of scale for FinTech companies and large financial institutions to collaborate on providing a new range of solutions. InsurTech and RegTech Evolving at a Rapid Rate Apart from the B2B space, other areas such as InsurTech and RegTech have gained prominence among investors. InsurTech, in particular, has gained more traction among investors given the operational challenges faced by traditional insurance companies. Traditional insurers have increasingly recognized the importance of digital transformation and have begun making significant investments in FinTech companies and in the development of the InsurTech ecosystem. Germany for instance is seeing numerous advances in the space. InsurTech hubs have started to evolve in different parts of Germany, including Cologne and Munich. RegTech and compliance solutions are another area which is seeing rapid growth as regulatory requirements rise in most countries. For instance, the implementation of PSD2 in Europe has opened a number of opportunities for fintech players. PSD2 requires financial institutions to grant third party providers access to customer account information.


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MARKET DRIVERS

Dynamic Consumer Behaviour and Preferences

Impulsive consumer behaviour and preferences plays a big part in FinTech industry development. Consumers that grasp new technologies are seeking alternative sources and demanding a greater level of personalisation, convenience and immediacy. The rising number of millennials, or Gen Y, a generation born between 1981 to 2000, have been quick to adopt new technologies, given their reliance on mobile devices and their preference for convenience. This group of generation pick their money through applications and online payment systems. Likewise, they are increasingly switching to a cashless society and use their smartphones to do withdrawals, conduct transactions, manage and invest their finances. The Millennial Disruption Index, a study of industry disruption of teens to the 30-somethings, show that this generation are counting on tech starts-up and are more excited about new offerings in financial services, from players like Google, Amazon or Paypal, than from the offerings of traditional banking services providers. Moving forward, financial institutions need to digitally transform and create networked ecosystems that provide the needs to millennials from online transactions, risk management, investment and finance services.

Uptake of Digital and Mobile Devices

In previous decades most people performed their daily tasks in a conventional less technologically complicated manner, but the internet has brought digital platforms and mobile devices to the fore in many aspects of daily life. The internet and mobile devices, notably smartphones, have become a core necessity in the consumer’s lifestyle and making a big impact on financial services. According to research firm eMarketer, there were ~2.4 billion smartphone users in the world in 2017 and by 2018 more than a third of the global population will be using smartphones. It is estimated that there will be ~3.5 billion internet users in 2017 and by 2019 more than half of the world population will use internet. Mobile devices themselves are changing, with smartphone developers like Apple and Samsung offerings updates every few months that have an effect on the way consumers access services. FinTech firms are typically therefore make development on mobile channels a priority, setting a new standard for convenience. This impresses the need for banks to offer more simplified facilities, like easier money transfers, one-click overdraft protections and notifications that help customers manage investment options easier. One mobile application, Moven, for instance, merges personal financial management features with its banking transactions, and uses GPS to offer users real-time overdrafts when a customer’s funds are running low. Ondot System, an application in the payment arena, allows its customers exercise greater control over their cards, including blocking certain types of transactions and limiting its amounts. And Openfolio, an investment management service, lets its customers consolidate their accounts in one place, tracking their portfolio’s performance against various benchmarks. The rise of the mobile-on-demand economy, along with a significant drop in the cost of computing and the greater usage of smartphones, have driven demand for new payment systems that provide greater accessibility and deliver more diverse financial products to consumers.


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Other Technological Developments

Occurring at a rapid rate, innovation plays a big role, with payments industry enhancements being rolled out in most major banking markets around the world, notably the US, Canada, the UK, Australia, Singapore, India, China and Hong Kong, France, Germany and The Netherlands. The availability and lower cost of technologies like data management, security and information technology is notable in this respect. Cloud-based solutions, are more flexible and cost-effective, and are enabling businesses to build and adapt their operations more effectively and efficiently. Application programming interfaces (APIs) are changing the interaction between two or more online connected services, giving the opportunity to build solutions that integrate and combine different services and data sources. Large companies that are focusing on FinTech like Google, Amazon, Facebook and Apple have raised customer expectations by delivering highly efficient personalized and digital customer interaction. Finding digital interfaces easy, customers have become to demand similar levels of experience from their financial institutions. Therefore, the FinTech firms needs to take advantage of the latest technology to deliver better value services to customers. Advancements in technology have significantly improved the storage of access and interpretation of information and data, resulting in commercial benefits, but the needs for greater information protection are also crucial. Developments in bio-metric security like the use of fingerprints, facial recognition, iris scanning and voice recognition as unique identifiers now provide stronger security. This is also changing the way financial institutions roll out new technology. Over the past year, Artificial Intelligence (AI) has become a major driver behind FinTech innovations. AI presents significant opportunities to automate processes such as regulatory compliance and reporting. Even insurance companies are seeing a potential opportunity to use AI in order to make processes such as underwriting more efficient.

Banks Embrace the Digital Customer Experience

Banks globally are increasingly rolling out non-physical channels to develop new ways to engage with and retain customers. As banks increasingly interact with customers on digital platforms, more are engaging FinTech to deliver customer experiences on par with large tech firms and innovative start-ups. By adopting new solutions to improve and simplify operations, banks can foster a move from physical channels and to digital delivery. Open development and software-as-a-service (SaaS) ― a software distribution model in which a third-party provider hosts applications and makes them available to customers over the internet ― along with APIs are helping banks to offer customers a wider array of options, constantly upgrading without having to invest in requisite research, design and development of new technologies. On the other hand, online banks are relying on transparency, service quality and unlimited global access for millennials, accessing multiple service channels.

Tapping the Potential of Blockchain

Blockchain, the technology that stands behind all new cryptocurrencies, helps improve efficiency, transparency and impregnability. A relatively new technology developed in 2008, it combines numbers of mathematical, cryptography and economic principles, to maintain a database between multiple participants without the need for third party reconciliation. In other words, it is a secure and distributed ledger technology. The benefits of blockchain technology in the financial service industry includes simplified ecosystems via common ledger ― a single common ledger can be utilized to share the transaction information across multiple intermediaries, reducing potentially proprietary systems and reconciliation ― security from fraud and tampering of records; decentralized and transparent operations; increased speed; and lower cost of operation. The latter can drastically reduce proprietary implementation and maintenance costs compared to traditional central ledgers.


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The year 2017 saw high interest in blockchain, with VC investment reaching a record high of $512 million. Regulators and governments have been keenly supportive of blockchain efforts, particularly in the Middle East and Singapore. In Singapore, for example, three Asian banks and the Monetary Authority of Singapore worked together to develop a blockchain proof-of-concept aimed at streamlining know-your-customer (KYC) processes. There are signs of more solutions being developed in 2018. For instance, the Australian Securities Exchange plans to replace its equity settlements process in 2018 with a blockchain-enabled solution that it has been pilot testing. A number of big banks including Deutsche Bank, UniCredit, KBC, Rabobank, Société Générale and others announced to work together on a blockchain-enabled smart contracts solution. The intent of this collaboration is to improve cross border trade payments particularly for small businesses.

Asian Fintech Investment Continues to Grow

While the focus of FinTech to date has been in the US, Asia is catching on quickly. According to Frost & Sullivan, the overall FinTech market in the Asia-Pacific is expected to reach $72 billion by 2020, fueled by growth in digital payments. The year 2017 also saw strong activity in the Asian FinTech space. According to CBInsights, Asian fintech companies attracted VC funding worth $5.7 billion. Though it was below the levels seen in 2016. In particular, it is China that is emerging as one of the world’s fastest growing FinTech hubs. In 2017, China continued to dominate the Asian fintech deal activity. Chinese firms were the primary participants in the fintech IPOs in 2017. In 2016 as well, China and Hong Kong accounted for US$10.2 billion or ~91% of the total Asia-Pacific investments. All of the ten largest fintech investments in Asia-Pacific in 2016 were in China and Hong Kong; together those ten deals accounted for 82% of all Asia-Pacific FinTech investment in 2016. Leading the deals was Ant Financial Services Group which attracted ~US$4.3 billion. Further, two more Chinese firms, Lufax and JD Finance, attracted US$1 billion each. Ant Financial plans to expand from online payments into offline, banking and financing services and offer its financial services through Kakao Pay in South Korea. Kakao Talk has offered mobile payments in the country for some time. It is installed on an extraordinary 95% of smartphones in Korea and has 48 million users. The move to spin off its financial services division to the new Kakao Pay division will see it offering over-counter payments, peer-to-peer transactions, bill payments, web banking and possibly lending and financing in the future. This alliance could open the door for Alibaba to push its e-commerce services more aggressively in South Korea, and make it easier for visitors from China to use Alipay. Over the past year, China introduced more stringent controls in order to protect consumers and provide more clarity around fintech. The P2P lending space has been a key target for enhanced controls given its high level of risk. In December, the central government issued a notice outlining future requirements related to P2P lending, including requirements for registration. This process is expected to vastly reduce the number of P2P lenders while enhancing the quality of the remaining companies. Despite regulatory uncertainty around FinTech, China continued to see support for fintech-related innovation during 2017.


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APPLICATIONS Both Chief Financial Officers and the Chief Technology Officers in financial services institutions are key figures in managing cost control initiatives, not only influencing the profitability of an organization but its long-term sustenance and stability. The emergence of FinTech has transform the financial system across a broad range of services, forcing finance and banking institutions to change how they do businesses and posing a major challenge for them to retain their financial stronghold in the market. Most financial services institutions are rapidly embracing FinTech and forming alliances and partnerships with technology firms in an effort to sharpen their operational efficiency and better respond to customer demand for more innovative services. As such, non-bank technology firms, with specialist technical knowledge, experiences, skills in emerging technology and trends are now deeply collaborating with financial institutions to not only gain access to new technologies but innovate. FinTech has thus created significant challenges for the financial industry, changing the nature of customer ownership, as online solutions like payment services become cheaper and as consumers moving into online services. The availability of cloud services such as iCloud and Dropbox has had a big impact on investment costs, with technology companies now able to enter the market without huge investment in technology infrastructure as in the past, as they are flexible, cost-effective and efficient. Developments in FinTech are affecting all sectors in the financial services industry, such as banking, capital markets, payments, insurances, wealth management, real estate, industry platforms, system and infrastructure. The application of information technology to financial services has been present for many decades, typically focused on industry innovation efforts in enhancing the efficiency of technology infrastructure and improving systems stability, resilience and security. However, the banking industry has traditionally been more conservative to change, regarding technology as a necessary part of its services delivery infrastructure. Importantly, however, much of the creation of ideas is coming from technology firms, not with institutions themselves. Increasingly, if banks want to be at the center of the payments industry, they are needing to engage in the full range of FinTech development possibilities in the market and, also importantly, have a deep internal understanding of FinTech technology. Savvy banking institutions are understanding the profound potential of FinTech and are exploring the wide range of possibilities; in many cases changing their business models substantially.

Payments

FinTech industry is rapidly changing the face of global payments as it transforms how transactions are being initiated and processed. Non-bank payment providers started a wave in payments innovation, leveraging into technology to bring advancements to the payments space to established non-payments industry operators such as the Facebook and Apple, with its speed, conveniences, efficiency and multi-channels accessibility. Peer-to-peer (P2P) payment systems, which are online services, allow consumers to exchange money electronically. Millennial may account for the majority of early adopters, however, people across all age groups uses peer-to-peer payment systems as it is more convenient, and relatively lower cost of sending money, particularly important to consumers in today’s financial economy. According to research by Boston Consulting Group, banks have extracted over US$1 trillion in revenues a year from over a US$400 trillion of annual payments, as consumers increasingly pay with credit cards or online services on their mobile phones. According to research form eMarketer, the transaction value of US mobile P2P payments will grow 55.0% in 2017 to ~$120 billion. This figure is expected to double by 2021. In 2017, 63.5 million US adults used a P2P payment app at least once a month, which equates to nearly one-third of smartphone users.


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Online Marketplace Lending

Over the past few years, online marketplace lending companies have evolved from platforms that connect individual borrowers with individual lenders, to sophisticated networks featuring institutional investors, financial institution partnerships, direct lending and securitization transactions. Advances in technology and data availability have changed the way consumers and small businesses secure financing. Online marketplace lending is a segment of the financial services industry that uses investment capital and data-driven online platforms to lend directly or indirectly to consumers and small businesses. Initially, this segment emerged as P2P marketplace, with companies giving individual investors the ability to provide financing to individual borrowers. As products and business models evolved, investors base for online marketplace lenders expanded to institutional investors, hedge fund and financial institutions. The growth of marketplace lending is a way for borrowers to access loans online without the intermediary of a traditional bank and this has been one of FinTech most visible successes. After the financial crisis in 2008, P2P has grown quickly, benefiting from low interest rates, low default rates, as such improved lending process and scarcity of consumer credit during the economic recovery. While, the online lending marketplace industry has its share of regulatory challenges in the past, it is now looking more optimistic for the sector. Analysts predict the online marketplaces could potentially process US$1 trillion in new loans by 2025. China has been experiencing rapid growth in the sector despite its strict regulatory stance. The three Chinese internet giants – Baidu, Alibaba and Tencent are active in the space. Tencent’s WeBank had extended loans valued at $30.1 billion with an average loan size of $1,200 through the first half of 2017. During the same period, Ant Financial loan book was $17.31 billion with the average loan size of $2,560. Digital Mortgages Globally there has been high interest in digital mortgages and is expected to continue in 2018. Until now, much of the online lending marketplace has been focused on unsecured lending; however, FinTech players are now looking to tap into the mortgage market. Mortgages are considered to be an area ripe for digital disruption, given mortgage origination processes are currently cumbersome and labour intensive. Last year, digital mortgage company Blend raised $100 million in funding. It also recently announced new partnerships with Wells Fargo and US Bank. This area is expected to attract attention over the coming years. Consumers seem to be increasingly ready for digital mortgages. According to a Harris poll commissioned by Fiserv, 69% of consumers already research loan options online and 68% said they review loan documents online. Among millennials, 48% said they would be comfortable researching loan options on their smartphone.

Robo-Advisors

The new wave in the FinTech industry currently is robo-advisors, online financial advisory firms that leverage automation and algorithms to manage client portfolios. They offer investment management services to consumers for a fraction of the price of a financial advisor. Such platforms benefit from changing demographics and changed consumer behaviour and favour automated and passive investment strategies. They are characterised by simple and transparent fee structures and have attractive unit economies that allow low or no investment minimums. According to a report by BI Intelligence, robo-advisors will manage around 10% of the overall global assets under management (AUM) by 2020. This will equate to ~$8 trillion. Innovation in the investment technology space is creating a furious race among insurance companies and start-ups, brokerages, wealth management businesses to serve a changing and evolving client base. In 4Q17, Morgan Stanley launched its Morgan Stanley Access Investing platform, a robo-enabled solution designed to help investors with less complex needs.


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Equity Crowd-funding

Equity crowd-funding is defined as the process whereby customers invest in unlisted companies in exchange for shares, helping them to drive fund innovation, thus helping entrepreneurs’ businesses to start and grow. For instance, when offline, it is hard for investors to find and invest in private companies, but with FinTech leveraging in equity crowd-funding, investors can look for opportunities, reviewing company information and engage with its managing team. FinTech platforms therefore allow investors to make their decisions more efficiently. It is empowering networks of people to control the creation of new products, media, ideas and raising funds for charity or venture capitals. Equity crowd-funding is an appealing option for small and medium-sized companies (SMEs), which have struggled to raise capital in recent years as increased capital requirements on larger banks make SME lending less appealing. FinTech companies, however, are able to leverage payment and other diverse data with faster processing, higher approval rates, reduced collateral requirements and lower risk, haven been an attractive source of capital for SMEs that traditionally are neglected by established financial institutions in many markets.


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CHALLENGES AND OPPORTUNITIES

Banks Face Challenges but also Opportunities in Digital Transformation

Despite making headlines about banking profitability, bank and financial institutions are still making inadequate returns on investment, often disappointing the market and investor expectation. They are also disappointing consumers, failing to deliver the level of services that consumers are demanding in regards to wait times, technology and cost. The result is an intensification of the opportunity for FinTech companies — companies that deliver all of these in a more efficient and nimble way. This is creating a big challenge for traditional banks, with many not able to adjust quickly to change, not only in respect to technology, but also in change management and other aspects of internal operations including their work culture. Regulatory pressures are also intensifying the pressure on banks as they need to ensure that any change is fully compliant with the vast plethora of rapidly changing domestic and international financial regulations. Many are spending a large proportion of their discretionary budgets to keep up with escalating requirements. Banks are nevertheless well positioned to keep pace and beat their competitors, with their large customer bases that enable them to own the relationships that generate FinTech revenue. Likewise, banks have well-established product portfolios and trustworthy brands, particularly around asset management, but not all are sufficiently equipped for the new competitive environment, and many don’t have big incentives to push for innovation internally. Even if there is an appetite for innovation it is often not a top priority and change is not always implemented systematically, thus resulting in conflict objectives and sometimes costly outcomes. There are also regulatory barriers to some start-ups entering the market. In Germany, FinTech start-ups are only permitted to offer loans if they collaborate with a partnering bank. Generally, bank have sufficient funds to forge ahead with innovation on larger scale, invest in alliances and acquisitions to overcome technological as well as regulatory barriers. Moving forward, digital transformation will become a key strategic priority for banks and financial institution as customers are demanding simple, seamless and personalized experience at every touch point. Another big opportunity is the vast potential of social and digital communities. Social media provides services, offers insights and engages with consumers and is used by billions of people globally. New channels that engage with customers are also being created. For instance, Under Armour, a widely popular athletic brand that sells shoes and apparel, connects with more than 38 million customers on digital platforms and is poised to become a lifestyle advisor and health consultant by branding into other services. The top-ranking multinational consumer electronics and home appliances company, Haier Asia, has used a two-prong approach to digital transformation, creating a service-based model to seize the potential of changing consumer behaviour and accelerating its product development.

FinTech Can Lower Costs

FinTech firms that are able to acquire customers at a lower cost have major competitive advantages to develop partnership with other players in the value chain. As such, many business lending FinTech players are collaborating with various electronic networks, like e-commerce portals, centralized air-ticketing platforms and credit card transaction processing platforms. These start-ups provide their services with very little physical infrastructure as the online lending platforms conduct most of the processes online in an automated manner, thus taking advantages on traditional banks in serving their customers. Likewise, point-of-sale payment processing platforms provide innovative solutions that significantly reduce the time and cost for small business owners to set-up electronic payment systems at their physical stores and online.


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LARGE PLAYERS TO WATCH

American Express Company (NYSE: AXP)

Headquarters: New York City, New York, United States Address: 200, Vesey Street, 50th Floor New York, NY 10285-3160, United States Phone: +1-212-640-2000 Fax: +1- 212-640-0404 Website: https://www.americanexpress.com/ Company Overview American Express or Amex, an American multinational financial services company, is best known for its charge cards and revolving credit cards; however, it is also one of the world’s largest providers of travel-related services and payment services. The corporation operates through four segments ― US consumer services, international consumer and network services, global commercial services and global merchant services. Amex’s products and services are sold to diverse customer groups including consumers, small businesses, mid-sized companies as well as large corporations. These are sold through channels including online applications, direct mail, in house teams, third-party vendors and direct response advertising. Besides its cards, the company partners with banks and other organizations to issue American Express-branded products. For fiscal 2017 its revenue was $33.5 billion, up 4% YOY. The company has been actively making investments and acquisitions in the FinTech space. Last year, it acquired a FinTech startup Cake Technologies for undisclosed amount. Cake Technologies makes it convenient to pay a restaurant or bar bill. American Express is onboarding this feature for its card members. Key Executives: Stephen J. Squeri Chairman of the Board, Chief Executive Officer (Designated) Jeffery C. Campbell Executive Vice President and Chief Financial Officer Douglas E. Buckminster President, Global Consumer Services Group James P. Bush President, International Consumer Services Group L. Kevin Cox Chief Human Resources Officer Number of Employees: 55,000 employees as of December 31, 2017 Market Capitalization: US$ 85,700 million (as of April 27, 2018) Reporting Period: Fiscal Year Ending December 31 Investor information: http://ir.americanexpress.com/Investor-Relations Email Notification for Company Results: Yes (http://ir.americanexpress.com/Email-Notifications) Exhibit 1: Key Financial Data

(In millions of US$) Three Months Ending Fiscal Year Ending March 31, 2017 March 31, 2018 December 31, 2016 December 31, 2017

Revenue US$8,136 US$8,943 US$32,119 US$33,471 Operating Income US$1,839 US$2,082 $8,096 $7,414 Net Income US$1,251 US$1,634 US$5,408 US$2,736 Total Assets US$161,385 US$179,956 US$158,893 US$181,159 Total Equity US$20,935 US$19,613 US$20,501 US$18,227


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Annual Reports

Fiscal 2017: http://ir.americanexpress.com/Cache/1001233963.PDF?O=PDF&T=&Y=&D=&FID=1001233963&iid=102700 Fiscal 2016: https://materials.proxyvote.com/Approved/025816/20170303/AR_313694/HTML1/tiles.htm Quarterly Financial Statements Fiscal 2018: First Quarter: http://ir.americanexpress.com/Cache/393175051.pdf Fiscal 2017: First Quarter: http://ir.americanexpress.com/file/102700/Index?KeyFile=1500098483 Second Quarter: http://ir.americanexpress.com/file/102700/Index?KeyFile=1500101499 Third Quarter: http://ir.americanexpress.com/file/Index?KeyFile=390753625&Output=3&OSID=9 Fourth Quarter: http://ir.americanexpress.com/Cache/1001230989.PDF?O=PDF&T=&Y=&D=&FID=1001230989&iid=102700 Stock Information Exhibit 2: LTM Price Performance vs. S&P 500

Source: Nasdaq


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Global Payments Inc (NYSE: GPN)

Headquarters: Atlanta, Georgia, United States Address: 3550 Lenox Road, Suite 3000, Atlanta, Georgia, 30326 Phone: +1-770-829-8000 Website: https://www.globalpaymentsinc.com/ Company Overview Global Payment Inc is a leading worldwide provider of payment technology services that delivers solutions driven by customer needs globally. The company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. It targets customers in various industries, including financial services, gaming, government, health care professional services, restaurants and retails. The company’s primary business model provides payment services directly to merchants as its customers. The company also offers integrated commerce, vertically-oriented software, cloud-based point-of-sale, analytic, marketing, payroll, e-commerce and omni-channel solutions through Realex Payments, a European online payment gateway technology. Besides, it also offers gaming solutions to licensed gaming operators. Their technologies, partnership and employee expertise provide a broad range of products and services that allow customers to accept all payment types across a variety of distribution channels in many markets around the world. The company reported adjusted net revenues of $3.52 billion in 2017, up 24% YOY. For 2018, the company expects adjusted net revenue plus network fees to range from $3.88 billion to $3.97 billion, reflecting growth of 12% to 15% over the comparable 2017 results. The company has been listed among the fastest growing 250 companies list by Forbes. Key Executives: Mr William I Jacobs Chairman Mr Jeffrey S. Sloan Chief Executive Officer Mr David E. Mangum President and Chief Operating Officer Mr Cameron M. Bready Senior Executive Vice President & Chief Financial Officer Dr Guido F, Sacchi Executive Vice President and Chief Information Officer Number of Employees: 10,000 employees as of December 31, 2017 Market Capitalization: US$17.72 billion (as of April 27, 2018) Reporting Period: Fiscal Year Ending December 31 Investor information: https://investors.globalpaymentsinc.com/index.cfm Email Notification for Company Results: Yes. https://investors.globalpaymentsinc.com/alerts.cfm? Exhibit 5: Key Financial Data (In millions of US$) 7 months ended

December 31, 2016* 12 months ended

December 31, 2017 Revenue US$2,202 US$3,975 Operating Income US$237 US$558 Net Income US$137 US$494 Total Assets US$10,664 US$12,998 Total Equity US$2,779 US$3,965

* Fiscal Year end has been changed to December 31 from May 31, effective from December 31, 2016.


March 2018

13

Annual Reports

Fiscal 2017: https://investors.globalpaymentsinc.com/static-files/1b38d3df-c8b3-4cf7-b319-52f5fbd31d61 Fiscal 2016: https://investors.globalpaymentsinc.com/common/download/download.cfm?companyid=AMDA-1JAKGZ&fileid=934120&filekey=E6D4EC72-8AFC-4560-91C3-9BEB144B4314&filename=GPN_2016_Transition_Annual_Report.pdf Quarterly Financial Statements Fiscal 2017: First Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=1024737 Second Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=1035836 Third Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=1047695 Fourth Quarter: https://investors.globalpaymentsinc.com/news-releases/news-release-details/global-payments-reports-2017-earnings-establishes-2018-growth Fiscal 2016: First Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=935493 Second Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=947144 Third Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=963733 Fourth Quarter: https://investors.globalpaymentsinc.com/releasedetail.cfm?ReleaseID=981616 Stock Information Exhibit 6: LTM Price Performance vs. S&P 500

Source: Nasdaq


March 2018

14

MasterCard Inc (NYSE:MA)

Headquarters: New York, United States Address: 2000 Purchase Street, Purchase, New York 10577, United States Phone: +1-914-249-2000 Website: https://www.mastercard.us Company Overview MasterCard Inc is a technology company in the global payments industry, operating one of the world’s fastest payment processing networks, connecting consumers, financial institutions, merchants, governments and businesses across the world. One of the biggest players that combines technology and financial services, the company’s products include consumer credit, commercial, debit, prepaid, commercial and digital payments options. Under consumer credit, it offers a range of programs that enables issuers to provide consumers with cards allowing to defer payments, while debit supports a range of payment products and solutions allowing its customer to access to funds in deposit and other accounts. Additionally, its prepaid payment programs support processing products and services focusing on government programs, such as social security payments, unemployment benefits, commercial programs, like payroll, health savings accounts, employee benefits, consumer re-loadable programs for individuals and electronic payments users. MasterCard also offers commercial payment products and solutions, which help large corporations, mid-sized companies, small businesses and government entities streamline their procurement and payment processes, manage information, expenses and administrative costs. Its SmartData tools, provides information reporting and expenses management capabilities and credit and debit programs for small businesses, focusing on offering digital solutions. This allows consumers to use their smartphones to make digital payments through various partnership with mobile companies and digital companies around the world. Moreover, MasterCard competes with American Express, Discover, JCB, UnionPay, Visa Inc, First Data Corporation, FIS, Interac, EETPOS, Bankserv, Total System Services Inc, Paypal, Alipay, and Amazon. Mastercard is working actively to incorporate blockchain technology to improve its services. The company announced launching its own blockchain network to enable partner banks and merchants to make cross-border payments faster and more securely. The company also filed a patent for a blockchain technology system for fighting fake identities. The company has also invested in the Digital Currency Group, which incubates cryptocurrency like bitcoin and blockchain-related companies. In addition, it joined the Enterprise Ethereum Alliance, which connects Fortune 500 companies with FinTech startups, academics and blockchain experts. The sales stood at $12.5 billion in 2017, an increase of 16% YOY. Key Executives: Mr Ajay Banga President and Chief Executive Officer Mr Craig Vosburg President, North America Mr Walt M. Macnee Vice Chairman Ms Martina Hund-Mejean Chief Financial Officer Mr Tim Murphy General Counsel and Chief Franchise Officer Number of Employees: 13,400 employees as at December 31, 2017 Market Capitalization: US$183.82 billion (as of April 27, 2018) Reporting Period: Fiscal Year Ending December 31 Investor information: http://investor.mastercard.com/investor-relations/default.aspx E-Mail Notification for Company Result: Yes. http://investor.mastercard.com/investor-relations/default.aspx


March 2018

15

Exhibit 7: Key Financial Data

(In millions of US$)

Three Months Ended Fiscal Year Ending December 31,

2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue US$2,756 US$3,312 US$10,776 US$12,497 Operating Income

US$1,363 US$1,522 US$5,761 US$6,622

Net Income US$933 US$227 US$4,059 US$3,915 Total Assets US$18,675 US$21,329 US$18,675 US$21,329 Total Equity US$5,684 US$5,497 US$5,684 US$5,497

Annual Reports Fiscal 2017: http://www.ezodproxy.com/mastercard/2018/ar/images/Mastercard-AR2017.pdf Fiscal 2016: http://s2.q4cdn.com/242125233/files/doc_financials/supplemental/2016/Mastercard-2016-Annual-Report.pdf Quarterly Financial Statements Fiscal 2017: First Quarter: http://s2.q4cdn.com/242125233/files/doc_financials/2017/1Q17-MA-Earnings-Release.pdf Second Quarter: http://s2.q4cdn.com/242125233/files/doc_financials/2017/2Q-17-Earnings-Release.pdf Third Quarter: http://s2.q4cdn.com/242125233/files/doc_financials/2017/Q3/3Q17-MA-Earnings-Release.pdf Fourth Quarter: http://s2.q4cdn.com/242125233/files/doc_financials/2017/Q4/4Q17-Earnings-Release.pdf Fiscal 2016: First Quarter: http://s2.q4cdn.com/242125233/files/doc_news/2016/MA-1Q16-Earnings-Release.pdf Second Quarter: http://s2.q4cdn.com/242125233/files/doc_downloads/2016/2Q16-MA-Earnings-Release.pdf Third Quarter: http://s2.q4cdn.com/242125233/files/doc_downloads/3Q16-MA-Earnings-Release.pdf Fourth Quarter: http://s2.q4cdn.com/242125233/files/doc_downloads/2017/4Q16-Earnings-Release.pdf


March 2018

16

Stock Information Exhibit 8: LTM Price Performance vs S&P 500

Source: Nasdaq


March 2018

17

PayPal Holdings Inc (NASDAQ: PYPL) Headquarters: California, United States Address: 2211, North First Street, San Jose, California, 95131 Phone: +1-408-967-7400 Website: https://www.paypal.com Company Overview Paypal is a leading technology platform company that provides digital and mobile payments on behalf of consumers and merchants globally. One of the first companies to merge technology with financial services on a large scale, the company focuses on maintaining its relevance for consumers, merchants, friends and family to access and move their money anywhere in the world, anytime on any platform and through any device. Paypal provides payments solutions for merchant websites, mobile devices and applications, and at offline retail locations through a range of payment solutions across its payment platform. The company operates a two-sided global technology platform that links its customer, both merchant and consumers, around the globe to facilitate the processing of payment transactions, allowing it to connect merchants and consumers. Likewise, it allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds and enables consumers to exchange funds with merchant using a range of funding sources, which include a bank account, a PayPal account balance, a PayPal credit account, a credit and debit card, or other stored value products, such as coupons and gift cards. The company also offers consumers P2P payment solutions through its Paypal website, mobile application as well as Venmo app. Venmo is a social payment app which allows one to share and make payments with friends, family and businesses. The app is particularly popular among millennials. For the full year 2107, Venmo processed approximately $35 billion in payment volume. PayPal has signed a deal with Skype to allow users to send money to other Skype users, in 22 countries. PayPal completed acquisition of Swift Financial and TIO network in 3Q17. For FY17, revenue stood at $13.09 billion, up 21% YOY. PayPal expects revenue to grow 15 - 17% at current spot rates and 14 - 16% on an FX-neutral basis, to a range of $15.00 - $15.25 billion for FY18. Key Executives: Mr John J Donahoe Chairman Mr Daniel H. Schulman President and Chief Executive Officer Mr Bill Ready Chief Operating Officer Ms Wanji Walcott Senior Vice President and General Counsel Mr John Rainey Executive Vice President and Chief Financial Officer Number of Employees: 18,700 employees as of December 31, 2017 Market Capitalization: US$88.02 billion (as of April 27, 2018) Reporting Period: Fiscal Year Ended December, 31 Investor information: https://investor.paypal-corp.com/ Email Notification for Company Results: Yes. https://investor.paypal-corp.com/alerts.cfm?


March 2018

18


(In millions of US$)

Three Months Ended Fiscal Year Ending March 31, 2017 March 31, 2018 December 31,

2016 December 31,

2017 Revenue US$2,975 US$3,685 US$10,842 US$13,094 Operating Income

US$431 US$534 US$1,586 US$2,127

Net Income US$384 US$511 US$1,401 US$1,795 Total Assets US$33,493 US$42,322 US$33,103 US$40,774 Total Equity US$14,626 US$14,641 US$14,712 US$14,712

Annual Reports Fiscal 2017: https://investor.paypal-corp.com/secfiling.cfm?filingID=1633917-18-29&CIK=1633917 Fiscal 2016: https://investor.paypal-corp.com/common/download/download.cfm?companyid=AMDA-4BS3R8&fileid=937412&filekey=D531F529-E134-493F-8330-A41C23E94952 Quarterly Financial Statements Fiscal 2018: First Quarter: https://investor.paypal-corp.com/releasedetail.cfm?ReleaseID=1065039 Fiscal 2017: First Quarter: https://investor.paypal-corp.com/releasedetail.cfm?ReleaseID=1023082 Second Quarter: https://investor.paypal-corp.com/common/download/download.cfm?companyid=AMDA-4BS3R8&fileid=950860&filekey=3C6C19E9-6BF5-468F-9BA6-BEB7F1B9A5BF&filename=PYPL_News_2017_7_26_General_Releases.pdf Third Quarter: https://investor.paypal-corp.com/releasedetail.cfm?ReleaseID=1044634 Fourth Quarter: https://investor.paypal-corp.com/releasedetail.cfm?ReleaseID=1055924


March 2018

19

Stock Information Exhibit 10: LTM Price Performance vs. S&P 500

Source: Nasdaq


March 2018

20

Visa Inc (NYSE: V) Headquarters: California, United States Address: PO Box 8999, San Francisco, California, 94128 United States Phone: +1-650-432-3200 Website: https://usa.visa.com/ Company Overview Visa Inc is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. It operates one of the world’s most advanced processing networks, VisaNet, that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa’s innovations enable its financial institution customers to offer consumers more choices, with pay now with debit, pay ahead of time with prepaid or pay later with credit products. The company’s revenue stood at $18.35 billion, up 22% YOY in the fiscal year 2017. In the first quarter of 2018, Visa acquired Fraedom, a Software-as-a-Service technology company providing payments and transaction management solutions for financial institutions. The acquisition will strengthen and expand Visa’s presence in the B2B payments industry. During the quarter, Visa signed partnership with 14 technology companies across the world for its “Visa Ready for Transit” program, which aims to promote contactless payment in public transportation. Key Executives: Mr Ryan Mclnerney President Mr Alfred F. Kelly Jr Chief Executive Officer Ms Kelly Mahon Tullier Executive Vice President, General Counsel and Corporate Secretary Mr Vasant Prabhu Executive Vice President and Chief Financial Officer Number of Employees: 15,000 employees as of September 30, 2017 Market Capitalization: US$282.23 billion as on April 27, 2018 Reporting Period: Fiscal Year Ended September 30, 2016 Investor information: http://investor.visa.com/ E-mail Notification for Company Report: Yes. http://investor.visa.com/ Exhibit 11: Key Financial Data

(In millions of US$) Three Months Ended Fiscal Year Ending

March 31, 2017 March 31, 2018 September 30, 2016

September 30, 2017

Revenue US$4,477 US$5,073 US$15,082 US$18,358 Operating Income US$2,808 US$3,336 US$7,883 US$12,144 Net Income US$430 US$2,605 US$5,991 US$6,699 Total Assets US$63,227 US$69,042 US$64,035 US$67,977 Total Equity US$30,783 US$34,103 US$32,912 US$32,760

Annual Reports Fiscal 2017: https://s1.q4cdn.com/050606653/files/doc_financials/annual/2017/Visa-2017-Annual-Report.pdf Fiscal 2016: http://s1.q4cdn.com/050606653/files/doc_financials/annual/Visa-2016-Annual-Report.pdf


March 2018

21

Quarterly Financial Statements Fiscal 2017: First Quarter: http://s1.q4cdn.com/050606653/files/doc_financials/2017/Visa-Inc.-Q1-2017-Financial-Results.pdf Second Quarter: http://s1.q4cdn.com/050606653/files/doc_downloads/2017/Q2/Visa-Inc.-Q2-2017-Financial-Results.pdf Third Quarter: http://s1.q4cdn.com/050606653/files/doc_financials/2017/Q3/Visa-Inc.-Q3-2017-Financial-Results.pdf Fourth Quarter: https://s1.q4cdn.com/050606653/files/doc_financials/2017/Q4/Visa-Inc.-Q4-and-FY-2017-Financial-Results.pdf Fiscal 2018: First Quarter: https://s1.q4cdn.com/050606653/files/doc_financials/2018/Q1/Visa-Inc.-Q1-2018-Financial-Results.pdf Second Quarter: https://s1.q4cdn.com/050606653/files/doc_financials/2018/Q2/Visa-Inc.-Q2-2018-Financial-Results.pdf Stock Information Exhibit 12: LTM Price Performance vs. S&P 500

Source: Nasdaq


March 2018

22

Fiserv (Nasdaq: FISV) Headquarters: Wisconsin, United States Address: 255 Fiserv Drive, Brookfield, Wisconsin, 53045, United States Phone: +1-262-879-5000 Website: https://www.fiserv.com/ Company Overview Fiserv is a leading global provider of financial services technology. The company provides various services including debit and credit card processing, electronic bill payment, internet & mobile banking software, account processing, investment services, risk management solutions, item processing and lending services. The company serves banks, thrifts, credit unions, investment management firms, leasing and finance companies, retailers, merchants, mutual savings banks, and building societies. The company recently completed the acquisition of Monetise Plc, thereby further expanding its digital technology suite to provide next-generation digital banking solutions. Fiserv was named among 2018 Fortune magazine “World’s Most Admired Companies” for the fifth consecutive year. In 2017 its sales were $5.7 billion, up 3% YOY. For the year 2018, Fiserv expects revenue growth of 4.5%. Key Executives: Mr Jeffery Yabuki President, Chief Executive Officer Mr Robert Hau Chief Financial Officer and Treasurer Mr James Cox Executive Vice President, Corporate Development Mr Mark Ernst Chief Operating Officer Mr Jim Grech Chief Information Officer Number of Employees: 24,000 employees as of December 31, 2017 Market Capitalization: USD 29.38 billion as of April 27, 2018 Reporting Period: Fiscal Year Ended December 31 Investor information: http://investors.fiserv.com/ E-mail Notification for Company Result: No Exhibit 13: Key Financial Data

(In millions of USD)


2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue $1,431 $1,516 $5,505 $5,696 Operating Income

$375 $425 $1,445 $1,532

Net Income $215 $546 $930 $1,246 Total Assets $9,743 $10,289 $9,743 $10,289 Total Equity $2,541 $2,731 $2,541 $2,731

Annual Report Fiscal 2017: http://files.shareholder.com/downloads/FISV/6232682852x0x972647/CF17F7B2-1E07-4274-92AE-AC77C425D5BA/SEC-FISV-798354-18-5.pdf


March 2018

23

Fiscal 2016: http://investors.fiserv.com/common/download/download.cfm?companyid=FISV&fileid=929748&filekey=A530F2BE-5974-477E-A825-8F8F910218EC&filename=FISV_12.31.2016_10-K_FINAL_with_Exhibits_.pdf Quarterly Financial Statements Fiscal 2017: First Quarter: http://investors.fiserv.com/common/download/download.cfm?companyid=FISV&fileid=939364&filekey=58FB928D-4DEE-4E62-9ED1-F1876CC57F6A&filename=FISV_News_2017_4_26_Earnings.pdf Second Quarter: http://files.shareholder.com/downloads/FISV/5325315983x0x951774/1EC42ECF-669F-427C-8816-88B52495F897/FISV_News_2017_8_1_Earnings.pdf Third Quarter: http://files.shareholder.com/downloads/FISV/5943578855x0x961854/BABB5C54-6A08-4EF3-BDE8-D6C58363CE9C/FISV_News_2017_10_31_Earnings.pdf Fourth Quarter : http://files.shareholder.com/downloads/FISV/6232682852x0x970791/80E6E579-2742-494C-8A77-2CD86EFAFA22/FISV_News_2018_2_7_Earnings.pdf Fiscal 2016: First Quarter: http://investors.fiserv.com/releasedetail.cfm?ReleaseID=969519 Second Quarter: http://investors.fiserv.com/releasedetail.cfm?ReleaseID=982444 Third Quarter: http://investors.fiserv.com/releasedetail.cfm?ReleaseID=995664 Fourth Quarter: http://investors.fiserv.com/common/download/download.cfm?companyid=FISV&fileid=927124&filekey=600FC213-27E2-47DA-8CCC-D756EFC55507&filename=FISV_4Q16_Earnings_Release_FINAL.pdf Stock Information Exhibit 14: LTM Price Performance vs. S&P 500

Source: Nasdaq


March 2018

24

Tencent Holdings (SEHK: 700)

Headquarters: Guangdong Province, China Address: Tencent Building Kejizhongyi Avenue Hi-tech Park Nanshan, Shenzhen, Guangdong Province 518057, China Phone: +86-755-8601-3388 Website: https://www.tencent.com/ Company Overview

Tencent is an investment holding company, providing internet value added services and online advertising services in China and internationally. The company also provides payment related cloud services through TenPay which supports B2B, B2C, C2C payments. The company also operates WeChat Pay, a payment solution which enables users to make quick payment transactions on their mobile phones and QQ wallet which provides multiple payment methods such as bank card payment, QR Code payment and NFC payment. In 2016, the sales stood at RMB 151.9 billion. Its revenue for 3Q17 was RMB 65.21 billion an increase of 61% over the third quarter of 2016.

The company is planning to setup a fintech lab in the Xiongan province in China. Earlier, the company stated its intention of boosting its investment in financial technologies such as payment solutions. In the first quarter of 2018, Tencent invested in a German FinTech startup, N26, an online only bank allowing customers to conduct payments and other banking transactions through its mobile phone app. Key Executives: Mr Ma Huateng Co-Founder, Chairman and Chief Executive Officer Mr Lau Chi Ping Martin Executive Chairman, President Mr Xu Chenye Co-Founder, Chief Information Officer Mr John Lo Senior Vice President, Chief Financial Officer Number of Employees: 44,796 employees as of December 31, 2017 Market Capitalization: RMB 3,688 billion as of April 27, 2018 Reporting Period: Fiscal Year Ended December 31 Investor information: https://www.tencent.com/en-us/investor.html E-mail Notification for Company Result: No Exhibit 15: Key Financial Data

(In millions of RMB)


2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue 43,864 66,392 151,938 237,760 Operating Income

13,930 25,724 56,117 90,302

Net Income 10,523 21,622 41,447 72,471 Total Assets 395,899 554,672 395,899 554,672 Total Equity 186,247 277,093 186,247 277,093

Annual Report Fiscal 2017: https://www.tencent.com/en-us/articles/17000391523362601.pdf Fiscal 2016: https://www.tencent.com/en-us/articles/17000341491836558.pdf


March 2018

25

Quarterly Financial Statements Fiscal 2017: First Quarter: https://www.tencent.com/en-us/articles/15000611495014502.pdf Second Quarter: https://www.tencent.com/en-us/articles/15000631502937074.pdf Third Quarter: https://www.tencent.com/en-us/articles/15000651510741924.pdf Fourth Quarter: https://www.tencent.com/en-us/articles/15000671521633395.pdf Fiscal 2016: First Quarter: https://www.tencent.com/en-us/articles/1500491464665482.pdf Second Quarter: https://www.tencent.com/en-us/articles/1500541477476593.pdf Third Quarter: https://www.tencent.com/en-us/articles/15000551479986174.pdf Fourth Quarter: https://www.tencent.com/en-us/articles/15000591490174029.pdf Stock Information Exhibit 16: LTM Price Performance vs. HangSeng Index

Source: MarketWatch.com


March 2018

26

Vantiv (now called Worldpay Inc.) (NYSE: WP; LSE: WPY)

Headquarters: Ohio, United States Address: 8500 Governors Hill Drive Symmes Township, Cincinnati, Ohio 45249, United States Phone: +1-513-900-5250 Website: https://www.vantiv.com/ Company Overview Vantiv (now Worldpay) is a leading payment processing service provider to merchants and financial institutions in United States. It was formed as a result of the acquisition of Worldpay Group Plc by Vantiv Inc completed on January 16, 2018 (deal was closed for ~$10 billion). The combined company was named “Worldpay Inc” with headquarters in Cincinnati, with a primary listing in New York and a secondary one in London. Worldpay processes over 40 billion transactions annually through more than 300 payment types across 146 countries and 126 currencies. The company’s growth strategy includes expanding into high-growth markets, verticals and customer segments, including global eCommerce, Integrated Payments and B2B. The company operates via two segments: Merchant Services and Financial Institution Services. Merchant Services segment revenues are primarily derived from processing credit and debit card transactions. Financial Institution Services revenues are primarily derived from debit, credit and ATM card transaction processing, ATM driving and support, and PIN debit processing services. For year 2017, the company reported revenues of $3.6 billion. The merchant client base includes merchant locations across the United States and is heavily-weighted in non-discretionary everyday spend categories where spending has generally been more resilient during economic downturns. In 2017, the company processed approximately 23 billion transactions for these merchants. The financial institution client base includes regional banks, community banks, credit unions and regional PIN debit networks. In 2017, the company processed approximately 3.5 billion transactions for these financial institutions. Key Executives: Mr Charles Drucker Executive Chairman and Co-Chief Executive Officer Philip Jansen Co-Chief Executive Officer Ms Stephanie Ferris Chief Financial Officer Mr Mark Heimbouch Chief Operating Officer Mr Ron Kalifa Executive Director Number of Employees: 3,661 employees as of December 31, 2017 Market Capitalization: USD 23.91 billion as of April 27, 2018 (Now Worldpay, Inc.) Reporting Period: Fiscal Year Ended December 31 Investor information: http://investor.worldpay.com/phoenix.zhtml?c=250843&p=irol-irhome-wp E-mail Notification for Company Result: Yes (http://investor.worldpay.com/phoenix.zhtml?c=250843&p=irol-irhome-wp)


March 2018

27




2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue $955 $1,066 $3,578 $4,026 Operating Income

$152 $125 $568 $521

Net Income $62 -$46 $280 $182 Total Assets $7,044 $8,667 $7,044 $8,667 Total Equity $1,607 $600 $1,607 $600

Annual Report Fiscal 2017: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjkxMzM1fENoaWxkSUQ9NDAyNjExfFR5cGU9MQ==&t=1 Fiscal 2016: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjYzMTgyfENoaWxkSUQ9MzcwNDc4fFR5cGU9MQ==&t=1 Quarterly Financial Statements Fiscal 2017: First Quarter: http://investor.worldpay.com/phoenix.zhtml?c=250843&p=irol-newsArticle&id=2265720 Second Quarter: http://investor.worldpay.com/phoenix.zhtml?c=250843&p=irol-newsArticle&id=2292837 Third Quarter: http://investor.worldpay.com/phoenix.zhtml?c=250843&p=irol-newsArticle&ID=2311525 Fourth Quarter: http://investor.worldpay.com/phoenix.zhtml?c=250843&p=irol-newsArticle&id=2335240 Fiscal 2016: First Quarter: http://investors.vantiv.com/phoenix.zhtml?c=250843&p=irol-newsArticle&ID=2161685 Second Quarter: http://investors.vantiv.com/phoenix.zhtml?c=250843&p=irol-newsArticle&ID=2189343 Third Quarter: http://investors.vantiv.com/phoenix.zhtml?c=250843&p=irol-newsArticle&ID=2215922 Fourth Quarter: http://investors.vantiv.com/phoenix.zhtml?c=250843&p=irol-newsArticle&ID=2241178


March 2018

28

Ant Financial (private) Headquarters: Hangzhou, China Address: Building B, Huanglong Times Plaza, NO 18, Wantang Road, Hangzhou, China Phone: +86 571-2688-8888 Fax: +86 571-8815-7868 Website: https://www.antfin.com/ Founded In: December 8, 2004 Key Executives: Ms. Lucy Peng Executive Chair Mr. Eric Jing Chief Executive Officer Mr. Cheng Li Chief Technology Officer Mr. Douglas Feagin Senior Vice President of Global Business Company Overview ANT Financial Service Group, originating from Alipay, is a world-leading third-party payments platform founded in 2004. With its vision of “bringing small and beautiful changes to the world”, ANT Financial is dedicated to creating an open ecosystem, providing inclusive financial services to small and micro enterprises and individuals consumers. The company operates an online payment platform that offers mobile payment services, selling insurance products online, small loans to business that set up virtual storefronts on Alibaba’s retail websites. Businesses operated by ANT Financial includes Alipay, Ant Fortune, Zhima Credit, MYbank and Ant Financial Cloud, covering payments, wealth management, independent credit scoring and reporting, private banking and cloud computing services. In January 2017, the company announced plans to acquire MoneyGram International for $880 million. However, in January 2018 the US government denied approval for the merger. Ant Financial subsequently must pay a $30 million termination fee for the breakdown of the deal. Alibaba and MoneyGram have proposed to instead form a “new strategic business cooperation” to expand its remittance and digital payments services internationally. The company is eyeing more opportunities internationally via acquisitions or JVs. It announced a JV with CK Hutchinson Holdings to provide its services in Hong Kong. The company is planning to reach 2 billion consumers by 2025. According to reports, the company is looking to raise $9 billion in private funding round, which could value the firm at close of $150 billion. The company has been expanding aggressively outside China into Europe and other parts of Asia. Ant has struck deals in Europe with major institutions such as BNP Paribas to help more merchants accept Alipay, mainly for Chinese visitors.


March 2018

29

MID-SIZED PLAYERS TO WATCH

LendingClub Corporation (NYSE: LC)

Headquarters: California, United States Address: 71 Stevenson Street, Suite 300, San Francisco, California, 94105, United States Phone: +1-415-632-5600 Website: https://www.lendingclub.com/ Company Overview Lending Club is the world’s largest online marketplace connecting borrowers and lenders. LendingCLub helps consumers and small business owners borrow, lower their cost of credit and enjoy more transparency than that of traditional banks. The company provides personal loan, education and patient finance loans, auto refinancing loans, small business loans and lines of credits to the borrowers. LendingClub helps investors earn attractive risk-adjusted returns. The investors have an opportunity to invest in a wide range of loans based on term and credit characteristics. The company attracts wide range of investors including retail investors, high-net-worth individuals and family offices, banks and finance companies, insurance companies, hedge funds, foundations, pension plans and university endowments. In 2016, the revenue stood at $500 million, up by 16% YOY. The company reported revenues of $574 million in FY17. The company is targeting total net revenues in the range of $680 million to $705 million for 2018. Key Executives: Mr John Morris Chairman Mr Scott Sanborn Chief Executive Officer Mr Steve Allocca President Mr Tom Casey Chief Financial Officer Mr Sameer Gulati Chief Operating Officer Number of Employees: 1,837 employees as of December 31, 2017 Market Capitalization: USD 1.13 billion as of April 27, 2018 Reporting Period: Fiscal Year Ended December 31 Investor information: http://ir.lendingclub.com/corporateprofile.aspx?iid=4213397 E-mail Notification for Company Result: Yes http://ir.lendingclub.com/email.aspx?iid=4213397 Exhibit 18: Key Financial Data



2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue $130 $156 $500 $574 Operating Income

($32) ($91) ($150) ($153)

Net Income ($32) ($92) ($145) ($153) Total Assets $5,562 $4,640 $5,562 $4,640 Total Equity $975 $922 $975 $922


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Annual Report: Fiscal 2017: http://ir.lendingclub.com/Cache/392292654.pdf?IID=4213397&FID=392292654&O=3&OSID=9 Fiscal 2016: http://ir.lendingclub.com/interactive/lookandfeel/4213397/Lending-Club-2016-Annual-Report.pdf Quarterly Financial Statements Fiscal 2017: First Quarter: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001223608 Second Quarter: http://ir.lendingclub.com/Cache/1001226606.PDF?Y=&O=PDF&D=&fid=1001226606&T=&iid=4213397 Third Quarter: http://ir.lendingclub.com/corporateprofile.aspx?iid=4213397 Fourth Quarter: http://ir.lendingclub.com/Cache/1500107798.PDF?Y=&O=PDF&D=&fid=1500107798&T=&iid=4213397 Fiscal 2016: First Quarter: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001210147 Second Quarter: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001212877 Third Quarter: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001216387 Fourth Quarter: http://ir.lendingclub.com/file.aspx?iid=4213397&fid=1001220110 Stock Information Exhibit 19: LTM Price Performance vs. S&P 500

Source: Nasdaq


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Nets A/S (CPSE: NETS) Headquarters: Ballerup, Denmark Address: Nets A/S, CVR no. 37427497 Lautrupbjerg 10, DK-2750 Ballerup, Denmark Phone: +45-44-68-44-68 Website: https://www.nets.eu/ Company Overview Nets A/S provides digital payment services and related technology solutions. The company provides solutions which enables merchants, corporates, financial institutions and consumers to make and receive payments. It operates via three segments: 1) Merchant Services: offers in-store, online, and mobile payment acceptance solutions; 2) Financial and Network Services: provides outsourced processing services to credit card issuers; and 3) Corporate Services: offers a payment platform for recurring bills and credit transfer transactions for corporates. In 2017, its sales were DKK 7.72 billion, with organic growth of 5% YOY. The company accepted the earlier announced takeover offer from a consortium of bidders, Evergood 5 AS. Subsequently, Nets was delisted from the Nasdaq Copenhagen. Nets has won an international tender to provide an instant payments system to Hungarian ACH Giro. This follows similar deals won for the Italian and Slovenian markets. Key Executives: Mr Bo Nilsson Group Chief Executive Officer Mr Klaus Pederson Group Chief Financial Officer Mr Asger Hattel Group Executive Vice President, Merchant Services Mr Thomas Jul Group Executive Vice President, Financial & Network Services Number of Employees: 2,454 employees as of December 31, 2017 Reporting Period: Fiscal Year Ended December 31 Investor information: https://investor.nets.eu/ E-mail Notification for Company Result: Yes https://investor.nets.eu/email-alerts Exhibit 20: Key Financial Data

(In millions of DKK)


2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue 1,910 1,946 7,385 7,724 Operating Income

399 447 943 1,501

Net Income 203 420 (584) 1,218 Total Assets 28,299 30,247 28,299 30,247 Total Equity 9,806 10,652 9,806 10,652

Annual Report Fiscal 2017: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/annual-report-2017.pdf Fiscal 2016: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/annual-report-2016.pdf


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Quarterly Financial Statements Fiscal 2017: First Quarter: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/q1-report-2017.pdf Second Quarter: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/Nets-interim-report-Q2-2017.pdf Third Quarter: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/Q3_report_2017.pdf Fiscal 2016: Third Quarter: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/interim-report-for-q3-2016.pdf Fourth Quarter: https://investor.nets.eu/~/media/Files/N/Nets-IR/documents/Financial-results-for-Q4-2016.pdf


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Aeon Financial Service Co (TYO:8570) Headquarters: Mihama-ku, Chiba-shi, Chiba, Japan Address: Terrace Square, 3-22, Kandanishiki-cho, Chiyoda-ku, Tokyo, 101-0054, Japan Phone: +81-3-52812057 Fax: +81-3-52812020 Website: http://www.aeonfinancial.co.jp/ Company Overview Aeon Financial Service Co Ltd engages in financial services in Japan and other Asian countries and operates via four different divisions: credit cards, banking, overseas and fee business. The company provides services in credit card, purchase loan and hire purchase contracts, various banking products and services, including fixed deposit account, mortgage loans, insurance products and investment funds as well as in-store branches. The company also offers ATM installation and insurance agency services, online insurance services and short-term insurance products. The company further engages collection agency services such as utility fees, mobile bills, and mail-order fees and provides extensive internet retailing services, like Touch n Go Card, an electronic toll collection card to pay highways tolls, trans and city bus fares. For FY17 its revenue was ¥375 billion, up 4% YOY. For the six months ended November 14, 2017, the company’s revenue was ¥194.5 billion, up 8% YOY. The company is targeting a full year FY2018 revenue of ¥390 billion. Key Executives: Mr. Masaki Suzuki Chairman of the Board Mr. Kenji Kawahara President and Chief Executive Officer Mr. Masao Mizuno Director and Executive Vice President Mr. Hiroyuki Watanabe Director and Executive Vice President Mr. Hideki Wakabayashi Senior Managing Director Number of Employees: 17,340 employees as of March 31, 2017 Market Capitalization: ￥553,571 million (as of April 27, 2018) Reporting Period: Fiscal Year Ending March 31 Investor information: http://www.aeonfinancial.co.jp/eng/ir/ Email Notification for Company Result: No Exhibit 21: Key Financial Data

(In millions of ￥) Year Ended March 31, 2016 March 31, 2017

Revenue ￥359,651 ￥375,166 Operating Income ￥59,380 ￥61,606 Net Income ￥35,785 ￥39,454 Total Assets ￥3,745,546 ￥4,187,263 Total Equity ￥289,296 ￥345,210 Annual Reports Fiscal 2017: http://www.aeonfinancial.co.jp/ir/data/annual/annual_report2017.pdf Fiscal 2016: http://www.aeonfinancial.co.jp/ir/data/annual/annual_report2016.pdf


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Financial Statements Fiscal 2017: First Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/tanshin/tanshin_e170808.pdf Second Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/setsumei/setsumei_e20171114.pdf Third Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/tanshin/tanshin_e180209.pdf Fiscal 2016: First Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/tanshin/tanshin_e160805.pdf Second Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/tanshin/tanshin_e161111.pdf Third Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/tanshin/tanshin_e170210.pdf Fourth Quarter: http://www.aeonfinancial.co.jp/eng/ir/data/tanshin/tanshin_e170511.pdf Stock Information Exhibit 22: LTM Price Performance vs. NIKKEI 225 Index



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Myob Group Ltd (ASX: MYO) Headquarters: Victoria, Australia Address: Level 3, 235 Springvale Road, Glen Waverley, Victoria 3150, Australia Phone: +613-9222-9777 Website: https://www.myob.com/ Company Overview MYOB Group Ltd is a provider of business management solutions in New Zealand and Australia, namely small and medium enterprise (SMEs) solutions, practice solutions and enterprise solutions. Its SME solution segment provides accounting software such as accounting, payroll and tax, while the practice solutions segment offers client accounting, practice management, tax, document management, company secretarial and insolvency solutions to accountants. Meanwhile, its enterprise solutions segments provide enterprise resource planning (ERP) and human resource management software and services to medium and large enterprises. Its products include PayDirect Online, YourPay, PayAgent, MYOB Advanced, MYOB PayGobal and MYOB Greentree, offering to its client in accounting, practice management, tax and document management. For FY17 its revenue was A$416 million, up 12% YOY. The management is guiding for organic revenue growth in the range of 8%-10% for 2018. In November 2017, Myob Group announced plans to acquire Reckon’s accounting business for ~A$180 million. Currently, the acquisition is under review by the Australian Competition and Consumer Commission (ACCC) with a decision expected by late June, 2018. Key Executives: Mr Justin Milne Independent Non-Executive Director and Chairman Mr Tim Reed Executive Director and Chief Executive Officer Mr Richard Moore Chief Financial Officer Mr John Moss Chief Strategy Officer Number of Employees: 1,500 employees as of December 31, 2017 Market Capitalization: AUD$1.93 billion as of April 27, 2018 Reporting Period: Fiscal Year Ended December 31 Investor information: http://investors.myob.com.au/Investors/?_ga=2.147722229.372231158.1500725107-1320557091.1500725107&ajs_aid=3edd1d42-56ac-455a-a1ef-95fce8d8f567 E-mail Notification for Company Result: No Exhibit 23: Key Financial Data

(In millions of AUD$)

Six Months Ended Fiscal Year Ending June 30,

2016 June 30,

2017 December 31,

2016 December 31,

2017 Revenue $178 $203 $370 $416 Operating Income

$42 $48 $95 $107

Net Income $26 $28 $52 $60 Total Assets $1,386 $1,439 $1,386 $1,399 Total Equity $854 $848 $854 $844


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Annual Reports Fiscal 2017: https://2017.myobreports.com.au/ Fiscal 2016: http://investors.myob.com.au/DownloadFile.axd?file=/Report/ComNews/20170223/01831267.pdf Half Yearly Financial Statements Fiscal 2017: http://investors.myob.com.au/DownloadFile.axd?file=/Report/ComNews/20170824/01887351.pdf Fiscal 2016: http://investors.myob.com.au/DownloadFile.axd?file=/Report/ComNews/20160825/01771182.pdf Stock Information Exhibit 24: LTM Price Performance vs. S&P/ASX 200 Index



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ACI Worldwide (Nasdaq: ACIW) Headquarters: Florida, United States Address: 3520 Kraft Road Suite 300, Naples, Florida 34105, United States Phone: +1-402-390-7600 Website: https://www.aciworldwide.com/ Company Overview ACI Worldwide focuses on providing software products and solutions primarily to facilitate real time electronic payments. The company recently acquired PAY.ON, which is a leading ecommerce payment gateway solution provider globally and Retail Decisions, a leader in fraud prevention solutions. In 2016, the sales stood at $1 billion, down by 4% YOY. In 2017, ACIW reported revenue of $1.024 billion, up 3% YOY. For the full year 2018, the company expects revenue to be between $1.05 billion and $1.075 billion, which would represent 3-5% growth over 2017. The company recently won a deal to provide real time payments capability for BMO Financial Group. ACI Worldwide received Frost & Sullivan “2017 European Competitive Strategy Innovation and Leadership Award” in the payment systems market. Key Executives: Mr Philips Heasley President, Chief Executive Officer Mr Scott Behrens Senior Executive Vice President, Chief Financial Officer Mr Craig Saks Chief Operating Officer Ms Eve Aretakis Executive Vice President, Product Development Mr Dennis Byrnes Executive Vice President, Chief Administrative Officer Number of Employees: 4,111 employees as of December 31, 2016 Market Capitalization: USD 2.70 billion as of April 27, 2018 Reporting Period: Fiscal Year Ended December 31 Investor information: http://investor.aciworldwide.com/index.cfm E-mail Notification for Company Result: Yes (http://investor.aciworldwide.com/alerts.cfm?) Exhibit 25: Key Financial Data



2016 December 31,

2017 December 31,

2016 December 31,

2017 Revenue $342 $326 $1,005 $1,024 Operating Income

$120 $108 $221 $84

Net Income $66 $33 $129 $5 Total Assets $1,902 $1,861 $1,902 $1,861 Total Equity $754 $764 $754 $764

Annual Report Fiscal 2016: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=939253&filekey=0EE26335-2405-4FC4-9F93-B3F7C6FA29A3&filename=2016_Annual_Report.pdf Fiscal 2015: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=888859&filekey=360A6B87-837F-480E-B08E-C279EAEF7F37&filename=2015_ACI_annual_report.pdf


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Quarterly Financial Statements Fiscal 2017: First Quarter: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=940963&filekey=72BE2B14-F517-4D0E-83F8-CCAF07124769&filename=170331_Quarterly_Results_Release.pdf Second Quarter: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=950920&filekey=9C004E02-3A44-4126-8E5B-2A279AADE1EB&filename=170630-Quarterly-Results-Release.pdf Third Quarter: http://investor.aciworldwide.com/static-files/c23455c4-9ba3-44f7-9996-3a926eda7e5d Fourth Quarter: http://investor.aciworldwide.com/static-files/40dd10d0-8a07-41f0-bef5-958b36783e79 Fiscal 2016: First Quarter: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=890065&filekey=574EE847-CE1E-4C28-AACF-D559F3E665A8&filename=160331-Quarterly-Results-Release.pdf Second Quarter: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=901814&filekey=66CCBE0B-AB51-4363-9C03-A703941AC0DD&filename=160728_Quarterly_Results_Release.pdf Third Quarter: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=915386&filekey=A04B597B-F801-4BF2-A03C-BBDA1185D01D&filename=160930_Quarterly_Results_Release.pdf Fourth Quarter: http://investor.aciworldwide.com/common/download/download.cfm?companyid=ACIW&fileid=930921&filekey=5F1D76D3-E788-4123-8196-6DBD165263CA&filename=161231-quarterly-results-release.pdf Stock Information Exhibit 26: LTM Price Performance vs. S&P 500

Source: Nasdaq


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39

SMALL PLAYERS TO WATCH

Futurefuel.io (private)

Headquarters: Massachusetts, United States Address: DCU FinTech innovation Center, 9th Floor 695 Atlantic Avenue, Boston, MA 02111, United States Website: https://futurefuel.io/ Founded In: 2016 Key Executives: Ms. Laurel Taylor Founder and Chief Executive Officer Mr. Scott McKay Chief Technology Officer Mr Sergio Pereira Chief Technology Officer, EU Company Overview FutureFuel connects students and growing professionals with top employers offering up to $30,000 of student debt repayment. The enterprise SaaS solution makes the implementation of debt repayment easy. The platform empowers employers to turn-on student debt repayment as an enterprise-wide benefit scheme or only for select special employee populations. The company was launched in 2016 and targets to eliminate more than $1.5 billion in student debt by 2021.


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WiseBanyan (private) Headquarters: Nevada, United States Address: 335 East Bonneville Ave Las Vegas, Nevada 89101, United States Website: https://wisebanyan.com/ Founded In: 2013 Key Executives: Mr. Herbert Moore Co-Founder and Co-Chief Executive Officer Ms. Vicki Zhou Co-Founder and Co-Chief Executive Officer Ms. Kristin Tomasik Chief Technology Officer Company Overview WiseBanyan was the first free robo-advisor to allow users to invest in a managed portfolio for the lowest possible price. The company, founded in 2013, helps people save and invest for their goals for free. The company provides automated goal based investing and automated financial planning. The company serves more than 25,000 people.


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Lufax (private) Headquarters: Shanghai Address: 13-15F, No 1333, Lujiazui Huan Road, Pudong, Shanghai, 200120, China Phone: 400-866-6618 Website: https://www.lu.com/ Founded In: September 2011 Key Executives: Mr. Kui Sheng Chairman Mr Huang Wenxiong Deputy General Manager Mr Mao Jinliang Deputy General Manager Mr Zheng Xigui Deputy General Manager and Chief Financial Officer Mr Li Zhenguang Deputy General Manager and Chief Operating Officer Company Overview Lufax is an internet-based lending and wealth management platform, owned by Ping An Group. Lufax aims to provide efficient and comprehensive wealth management platforms globally. Additionally, to its online lending, its services include providing risk management expertise, financial assets trading information and related consulting services for enterprises, financial services institutions and other qualified investors. Lufax takes advantage of the latest big data and IT technologies, and leverages, the most advanced risk assessment models and risk control systems. Lufax, which is the world’s second largest financial technology firm, is gearing up to launch a platform to facilitate Chinese investors’ asset allocation around the globe. An online platform will be established in 2017, granting wealth mainlanders legal access to foreign capital markets to cater to their surging demands for asset diversification. The company will also leverage on new technologies and models to provide clients internationalized services. According to reports, the company has delayed plans for its IPO due to regulatory restraints on online lending in China. Earlier reports had pointed to a listing on the Hong Kong Stock Exchange in April 2018 at a valuation of $60 billion. The company was valued at $18.5 billion when it raised $1.2 billion from a group of investors in early 2016.


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Atom Bank (private) Headquarters: Durham, Durham, United Kingdom Address: Northumbria House, Aykley Heads, Durham DH1, 5TS, United Kingdom Phone: +44-19-1256-2935 Website: https://www.atombank.co.uk/ Founded In: March 2014 Key Executives: Mr Anthony Thomson Chairman Ms Laurel Powers Freeling Senior Independent Director Mr Mark Mullen Chief Executive Officer Mr Stewart Bromley Chief Operating Officer Mr David McCarthy Chief Financial Officer Company Overview Atom Bank is breathing new life into banking by providing all its services digitally. Atom is an app-based bank that does not have any branches. This mobile banking app offers a range of personal and business banking products, and uses bio-metric security, which uses face and voice recognition. Atom’s innovative banking app appeals to younger customers particularly and the bank can save money by having no branches, potentially helping it to make a profit quickly. The company is closing in on £1 billion in deposits. The company has confirmed it has received more than £900 million in deposits since July 2016 when it launched its first savings accounts.


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AlphaPoint (private)

Headquarters: New York, United States Address: 355 Madison Avenue, 16th Floor, New York, New York 10017, United States Phone: +1-212-256-1231 Website: https://www.alphapoint.com/ Founded In: 2013 Key Executives: Mr Joe Ventura Co-Founder and CEO, CTO Mr Igor Telyatnikov President & Chief Operating Officer Mr Jack Sallen Co-Founder and Vice President Development Company Overview AlphaPoint is a financial technology company which provides an exchange platform to support digital currencies. The platform helps customers to digitize assets and reduce operational costs with its blockchain technology. The company has an experienced team with more than 200 years of combined experience in financial technology. The company also has a Distribution Ledger Platform which helps to digitize, trade and manage assets. The company announced plans to launch a new blockchain network dubbed the AlphaPoint Public Network. It also hired a new CEO, Salil Donde.


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KEY REFERENCES Boston Consulting Group (BCG) The Boston Consulting Group (BCG) is a worldwide management consulting firm. The firm advises clients in the private, public, and not-for-profit sectors around the world, including more than two-thirds of the Fortune 500 and is one of the “Big Three” strategy consulting firms. https://www.bcg.com/ KPMG KPMG is a professional service company and one of the Big Four auditors. The company has three lines of services: financial audit, tax and advisory. http://www.kpmg.com/ Accenture PLC Accenture is a globally management consulting and professional services company that provides strategy, consulting, digital, technology and operations services. https://www.accenture.com/

The Impact of Fintech June 2018 - Macrosource Media...THE IMPACT OF FINTECH ON FINANCIAL SERVICES...

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