current fintech trends in retail lending
TRANSCRIPT
• Tour of the FinTech Landscape• Industry Developments• “Go To” News Sources
Topics
Tour of the FinTech Landscape
FinTech in Numbers
“The number of fintech startups is difficult to pinpoint, but data sources and industry watchers estimate that Asia has approximately 2,500 fintech startups while the U.K. and the U.S. have a combined total of 4,000” - Falguni Desai, Forbes Asia “Based on assumptions and studies, the figures this year look like they’re heading near $30bn invested in fintech” – Chris Skinner, BankNXT
Last year Anthony Jenkins (Former CEO of Barclays) shared a stark vision for the banking world, predicting that over the next 10 years new technology, and a new wave of fintech startups, will disrupt the sector to such an extent that branches and headcount could decline by as much as 50%.
2,500
30bn
50%
Banking is necessary, banks are not.” – Bill Gates
https://www.cbinsights.com/blog/disrupting-european-banking-fintech-startups/
Unbundling of a European Bank
https://medium.com/@VentureScanner/the-state-of-financial-technology-in-15-visuals-b7cbea4b2b2a
Company Count by FinTech Category
Regulators
Banks
Bank VC Entities
Innovation Accelerators
and Incubators
Venture Capital &
Private Equity
FinTech Startups: Disruptors
Mentors
FinTech Startups: Enablers
Bank Supported
Accelerators
Industry Bodies (e.g.,
Singapore FinTech
Consortium)
Media
Angel Investors &
Groups
Industry Players & Stakeholders
Example disruption models
Outsider Unseats
incumbentExample: Lending
Club
Venture backed
Launch Competing product
Compete with bank
FinTech
Startup
With lower cost and efficiency
Enabler: e.g.,
Omise or
Acquisition: e.g., Simple
Join
Bank Mentor
s
Bank Test and Feedbac
k
FinTech Startu
p Accelerator & Get Funding
Bank Integrates or
purchases
Industry Developments
FinTech to Date• Strengths include better use of data and frictionless
customer experience Impact mainly limited to e-wallets and P2P lending
Current Conditions for Change• Policy shifts towards Open Data & APIs • Enhanced technologies (Cloud Computing) • Changing Customer Dynamics • Cost pressure for banks
Areas to Watch: • Applications for Internet of Things • Smart Data • Distributed Ledger• Frictionless process and products
Past, present and future
1http://www.oliverwyman.com/content/dam/oliver-wyman/global/en/2015/jun/The_Fintech_2_0_Paper_Final_PV.pdf
The Traditional Universal Banking Model
1http://katecarruthers.com/2013/11/future-of-banking/
Customer Front office(distribution)
Back office(manufacturing)
Market (processing)Infrastructure
“Breaking Banks” – The Great Unbundling
1http://katecarruthers.com/2013/11/future-of-banking/
Customer Front office(distribution)
Back office(manufacturing)
Market (processing)Infrastructure
Enter the ‘real’ challengers?
Non-traditional competitors are emerging and they are bypassing traditional banking
systems
NEW ENTRANTS
“Go To” News Sources
Five key trends fuelling FinTech in Asia: Digital Realityhttp://www.mis-asia.com/tech/industries/five-key-trends-fuelling-fintech-in-asia-digital-realty/
Examining the Top 4 FinTech Predictions for this Year an Beyondhttp://techcrunch.com/2016/02/25/examining-the-top-4-fintech-predictions-for-this-year-and-beyond/
Global Regulators Now Eyeing FinTechhttp://fortune.com/2016/02/27/global-fintech-regulation/
The Never-Ending Story: Europe’s Banks Face a Frightening Futurehttp://www.bloomberg.com/news/features/2016-02-16/european-bank-nightmare-far-from-over-as-fines-and-fintech-loom
Socialize and Mentor!SOCIALIZE: Join FinTech and related Tech innovation social mixers. Search for “FinTech”, “Innovation”, etc in:• http://www.meetup.com/• https://www.eventbrite.com/
MENTOR:• Startupfintech Bootcamp • FinTech SuperCharger• Founder Institute
INDUSTRY EVENTS:- https://www.fintechweekly.com/fintech-confer
ences
Read and Listen!NEWS : – http://www.fintechstreet.com/– FINTECHNA: http://news.fintechna.com/– FinTech Finance: http://eepurl.com/bWltz1 – https://twitter.com/ #FinTech– http://dailyfintech.com/– https://nextbank.org/blog/– https://www.cryptocoinsnews.com/– https://medium.com/@BankersLab
PODCASTS : http://fintechnews.ch/2070/fintech/best-fintech-podcasts/ BOOKS : http://fintechnews.sg/1023/fintech/the-10-best-fintech-books-to-have-in-your-library-top-fintech-books/
Points to Remember• DISRUPTOR OR ENABLER? FinTech
innovations are typically a ‘disruptor’ or an ‘enabler’ to your business. Enablers may be platforms, processes or new products which can help you grow revenue or reduce cost. Disruptors may emerge as direct competitors.
• CULTURE IS JOB ONE. Encourage your team to keep an eye on new developments and find ways to test new innovations.
• GET INVOLVED . The FinTech industry wants to work with you. Participate in Industry forums, accelerators, mentorships, etc. You’ll be able to emerge as a thought leader in your country and stay in front of the trends.
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