event: "#fintech in asia" - slide deck 2nd of february 2015
TRANSCRIPT
FinTech in AsiaCURRENT REGIONAL LANDSCAPE AND OPPORTUNITIES
Monday, 2 February 2015
Janos Barberis
Organised by: Hosted by:
Contents
1. Regional Landscape
2. China Case Study
3. Hong Kong as a FinTech Hub
Contact: [email protected]: www.FinTech.HK
FinTech Overview and the Asian Market
FinTech Market OverviewGlobal Market
Established Hubs
Investment Levels
US$ 3 Billion
x3 in 2018
LDN1st
Growth
NYC1st
Nominal&
A wide range of applications within Financial Sector:
•Payments
•Lending
•Crowdfunding
•Data and analytics
•Personal Finance
•Money Transfer
•Digital Currencies
• etc …
Contact: [email protected]: www.FinTech.HK
FinTech Market OverviewAsian Opportunities
Selection of Current Market Opportunities
Great but…
Fragmented market: 25 jurisdictions in Asia Pacific
Different levels of development: Infrastructure, Regulation, Behaviour
1.2bnUnbanked
620mDigital Banking
Customers
66%World middle
Class
4.3mHNWIs
US$300bnSME Credit Gap
Contact: [email protected]: www.FinTech.HK
But Why FinTech?Infrastructure mismatch (e.g. ATMs per 100,000)
New Business Models (e.g. Bank + Telco, new licence)
Big Market Growth
Who Will Get the Market?
Is comparing adequate, different models?
Singapore: Off-Shore Financial Centre
Hong Kong: Gateway Financial Centre
Q: Should FinTech start by supercharging existing strengths of financial centres? (e.g. Hong Kong: RMB, Gateway Investment, Payments, Trade?)
12.5Asia
62.5EU
US$ 5bn+Opportunity
SGN HK SDY
1.7bn (x3)Digital Banking Customers by 2020
Contact: [email protected]: www.FinTech.HK
“Payment Banks”
China: Case Study – Reasons behind the growth of Internet Finance
In The News
Alibaba IPO
5 New Private Banks (e.g. Tencent, Alibaba…)
47+ new P2P lending platform in December
US$ 6.5bn available for start-ups
…
Contact: [email protected]: www.FinTech.HK
Digital Banking Trends in China
+111mInternet Banking
Customers
+19%New Bank Accounts
+24%Using Online
Payments
Trends between 2010 – 2013:
Contact: [email protected]: www.FinTech.HK
Why Going Digital?Infrastructure Benchmarking:
Other Market Facts
China USA UK
# Unbanked 432m 10m 1m
% Unbanked 36% 2.7% 2.5%
Branches (per 100k) 7.7 35 25
ATM (per 100k) 37 173 124
China
Phones 1.1 bn
Internet Users
600m
Infrastructure Mismatch + Market Opportunity= fundamental reshaping for finance
(e.g. build financial regulations aroundFinTech, instead of adapting it to currentFramework)
Contact: [email protected]: www.FinTech.HK
Replacing or Fixing Formal Banking?Inefficient formal banking fostered the creation of alternative sectors:
• 20th Century: Shadow Banking• 21st Century: Internet Finance Companies
Internet Finance Companies are performing a useful role:
◦ Fix miss-allocation of financial resources (e.g. SME Funding)◦ Brings efficiency and automates an otherwise discretionary system
Broader Economic Impact:
◦ 400,000 SMEs funded via Alibaba Loans◦ 2.7 million job creations
Contact: [email protected]: www.FinTech.HK
Hong Kong: A financial centre for the 21st Century
Why Hong Kong as a FinTech Hub?Current Importance of Finance for Hong Kong:
15.9%of GDP
6%of workforce
12%of exports
3th
Financial
Centre
What about tomorrow?
Finance and the economy is increasingly digital.
How can we uphold the objective to:
“provide an appropriate economic and legal environment for the maintenance of the status of Hong Kong as an international financial centre” Article 109 – The Basic Law
Leverage on current strengths as a financial centre? Create new sectors? Both?
Contact: [email protected]: www.FinTech.HK
Current TrendsHong Kong has already started to develop its start-up eco-system:
x10More co-working
spaces available
since 2010
43%Increase in
applications for
StartmeUp HK
US$50mAssigned for
social innovation
&
entrepreneurship
1st
In terms of
attractiveness to
launch a start-up
600+Start-ups located
across Hong Kong
70Of the world’s
100 largest banks
are based in HK
HK$ 1BnAlibaba Foundation to
promote
entrepreneurship
FinTech will follow shortly…
Contact: [email protected]: www.FinTech.HK
How to develop the sectorFirst - Set a Strategic Focus for Hong Kong
What is the vision?
What are the markets?
What are the strengths?
Who are the influencers?
Second: Put on the right tracks for a high-growth
market.Human Capital
Financial Capital
MarketOpportunities
Contact: [email protected]: www.FinTech.HK