The FinTech RevolutionDisrupting traditional finance

“Silicon Valley is coming. There are hundreds of startups with a lot of brains

and money working on various alternatives to traditional banking… And we also are

completely comfortable with partnering where it makes sense.”

Jamie Dimon,

Chairman & CEO,

JP Morgan Chase

2014 Letter to Shareholders

March 8, 2016

Marc Hamud & James Healy

USC FinTech course

Intros

Course Overview

Rules of Engagement

FinTech… what is it?

Guest Speakerso Tim Li, CIO & Acting CMO, RealtyMogul

o Elizabeth Braman, CPO, RealtyMogul

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AGENDA

2

PROFESSORS

Marc Hamud James Healy

Experience

FastPay

GE Capital

Ford Motor Company

Education

MBA: Georgetown University

BSBA: Villanova University

Experience

Wells Fargo

GE Capital

United States Air Force

Education

MBA: University of Southern California

BS Mechanical Engineering: United

States Air Force Academy

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Name

Marshall class and year

Current company and role (if applicable)

Post graduation goals

What are you looking to get out of this course

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STUDENT INTROS

4

Course Goals

Rules of Engagement

Deliverables

Syllabus

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COURSE OVERVIEW

5

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COURSE GOALS

6

Introduce students to emerging FinTech models

Expose students to thought leaders in industry

Student engagement

Foster environment of support

Have fun

EXPECTATIONS

Professional environment in class: o Prepared, Punctual, & Participate

o Treat classmates, professors, and speakers with respect

Communication: comments, questions, concerns…

please let us know

Electronic device usage: please leave the room

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COURSE TOPICS

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GRADING

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DELIVERABLES

Mid-term Multiple choice test

Questions based on readings, in-class discussions, and guest

speaker comments

Final – Group FinTech Project Student teams of 4-6

Options

o Choose FinTech company or concept and complete comprehensive

analysis of business model

o Propose business plan for a new FinTech company

o Notify professors of your group & topic on March 29 (at latest)

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WHAT IS FINTECH

Finance TechnologyFinTech

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Industry utilizing technology to enable more efficient & effective financial services

Technological advancements are

enabling more effective & efficient financial

services businesses

• Big data analytics

• System interoperability

• Platform enhancements / availability

• Hardware & software advancements

(particularly in mobile)

Exponential growth in FinTech following

the Financial Crisis can be attributed to a

number of factors including:

• Shifts in consumer behavior

• Sentiment toward banks

• Regulatory constraints

• Low interest rate environment

1 http://fortune.com/unicorns & http://finovate.com/six-alt-lending-unicorns-worth-combined-15-billion-lending-club-prosper-on-deck-sofi-avant-funding-circle/2 http://www.economist.com/news/leaders/21650546-wave-startups-changing-financefor-better-fintech-revolution

EXPONENTIAL GROWTH IN FINTECH… THE TIPPING POINT

Global FinTech investment2

FinTech Unicorns: >$1B valuation1

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UNBUNDLING TRADITIONAL BANK

Source: CB Insights

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COURSE TOPICS

Marketplace lending

• Origination platforms w/

marketplace funding

Payment solutions

• Consumer & commercial

payments ecosystems

Crowdfunding

• Debt, equity & project

funding

Wealth management

• Investment and wealth

mgmt tools / platforms

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Investing in FinTech

• Equity (VC & PE) & debt

investments

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Numerous FinTech segments… many are integrated & overlapping

Big data underwriting

• Utilizing big data &

alternative sources

ADDITIONAL COURSE TOPICS

Banking the underbanked

• Financial products for

underbanked in U.S.

FinTech at Traditional Banks

• Partnering, acquiring,

and/or building in-house

Trade finance

• Integrated models into

transaction systems

FinTech in Developing Nations

• Mobile banking, lending,

payments, etc.

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Student loans financing

• Student loans &

evolution of segment

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Other

• The Tech in FinTech

• Regulation

• Security

• Exchanges

• And more…

FINTECH EVOLUTION CONTINUES

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FinTech still charting course… evolving in real time

Source: NYTimes, The Economist, Tech Crunch, WSJ

Today’s Recap

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FBE 599 introduction… we’re excited to get started!!!!!

Course objectives:o Introduce students to emerging FinTech models

o Expose students to thought leaders in industry

o Student engagement

o Foster environment of support

Establish expectations for class and deliverables

RealtyMogul kicks off FinTech Guest Speaker Series!!!