ppt fintech julie 2017 - swiss finance · embassy of switzerland swiss business hub russia 16th...

Embassy of SwitzerlandSwiss Business Hub Russia

16th February 2017 in ZürichJulie Bächtold, Deputy Head, Swiss Business Hub Russia

BUSINESS OPPORTUNITIES FOR SWISS FINTECH COMPANIES IN RUSSIA

2Swiss Business Hub Presentation / RussiaEmbassy of Switzerland | Swiss Business Hub Russia


Business Opportunities for Swiss FinTech Companies i n Russia

Content:

1. Main Characteristics of the Russian FinTech Market

2. FinTech Sectors

3. Business Opportunities for Swiss Companies

4. Fact Finding Trip to Moscow andNovosibirsk




Content:


2. FinTech Sectors





Target Customers for FinTech Products

• 2/3 of Russians use bank cards.

• Internet penetration is around 50% of households.

• Residents of large cities increasingly make purchases over the Internet.

• Increasing number of non-cash payments. However, the starting point is much lower compared to matured markets.

FinTech users penetration

Source: Base: EY FinTech Adoption Index 2015-2016

Analysis of FinTech use by product type



Heterogenous Supplier Landscape

• Suppliers include all sorts of companies from established large banks to start-ups andindividual enterpreneurs.

• A growing number of freelancers and socially active intellectual workers are active in this sector.



Lack of funding and investment in FinTech

• Lack of investment into institutional infrastructure.

• Lack of support for FinTech projects from business angels.

• The economic crisis reduces demand, increases volatility and anxiety.



Traditional banks offer very competitive services

• In the USA and Europe, interest rates on bank savings accounts are about 1-2% per annum, in Russia up to 20% in RUR and 7-8% in foreign currency.

• The high level of technological "advancement" of Russian banks also makes life hard for FinTech start-ups.



Areas of Disruption in the Next 5 Years

Banking in all the segments, wealth management, brokerage and exchanges – are the areas that will be the most disrupted by FinTech in Russia, according to the PwC survey.




Content:


2. FinTech Sectors





Most Developped Subsectors



Online-Lending &P2P Finance

• Online-lending penetration by the end of 2015 is estimated close to 10%

• According to NAFI, the industry’s association, online-lending growth was two-fold compared to offline in 2015

• Perspective areas: Crowdfinancing, lending for SMEs, linking different stakeholders, managing information, non-cash payments

The microloans volume issued by members of self-re gistered organization MIR, 3 Q 2015 (RUR bln)

Source: NAFI, The Bank of Russia



Payments

Source: PayPal, Cominfo Consulting

An n u a l gro w th , %

P en etra ti o n , %

O ffl i n e c a rd s

O n l i n e c a rd s

I n tern et-

Ba n ki n g

SM SM o b i l e a c c o u n t

M o b i l e B a n k Ap p l i c a ti o n

E-w alle t s

Segment of payments

• Ассording to J’son & Partners, digital payments market size in 2013 reached EUR 57,7 billion. Some experts estimate this market to be close to EUR 40-45 bln in 2016.

• Mobile operator assisted transactions – less than 1%.

• Perspective areas: Mobile payments and P2P transactions, integration and security.



Cryptocurrency

According to present view of Russian Authorities, a nonymous payment systems based on cryptocurrency, including Bitcoin, are mon ey substitutes and can not be used by Russian citizens and business.



Online Banking

• Online banking is overwhelmingly related to payments, 40% of all payment transactions going through banks.

• Value-added services are not yet present in Russian market.

• Perspective areas: Services and solutions for underserved consumers, simplification and integration of operations, social media banking apps, advanced analytics, emergence of self-service tools



Online Insurance

• Direct insurance market size grew by EUR 18,1 mln to reach EUR 121,5 mln in 2015.

• Perspective areas: Supplying services for Russian insurance companies, due tomarket protection measures against foreign insurance providers, aggregators, compulsary third party insurance, big data, wearables.



Online Wealth Management

• No figures available concerning the volume.

• Open-Architecture investment solutions are the most represented in Russian wealth management market

Source: EY analysis, Cominfo Consulting

Emerging trends

Mobile computing

Mobile-first development . User experience is designed for mobile first, then permeated to other channels Relationship orientation. Tablet form factor shifting client experience from transactional focus towards stronger relationship orientation

Social media

The social CEO . Senior executives use social media to interact effectively with clients and engage within community Social media as service channel. Divert customer service requests from costly call centers towards social media interactions

Advanced analytics

360° client profile. Customer analytics that combines internal with external data sources to create real-time and holistic view on clientsPeople analytics. Determine new approaches to attracting and retaining talent base through advanced analytics

Cloud computingPay-as-you-go cloud models. Ability to apply browser-based technologies for non-core business applications, such as enterprise content management, performance management cycle and recruitment




Content:


2. FinTech Sectors





Swissness as Point of Attraction

Many people do not trust the Russian finance system and prefer to use the services of foreign banks

• The most trustworthy European jurisdictions are Switzerland, Liechtenstein, Austria.

The main trust reasons for foreign banks in Russia:

• Financial protection from the risks associated with RUR exchange rate and changes in Central Bank policy.

• Foreign banks are more reliable

• Image component



Challenges on the Russian Market

Instabile situation

Scarce information

Logistics

Business partner search

Cultural differences



Report

BUSINESS OPPORTUNITIES FOR SWISS FINTECH COMPANIES IN RUSSIA

Available on http://www.s-ge.com/en/blog/opportunities-russian-fintech-market

Published in November 2016




Content:


2. FinTech Sectors


4. Fact Finding Trip to Moscowand Novosibirsk



Program Draft

1. day: Transfer to Moscow

Evening reception with briefing and networking

2. day: Visit of Skolkovo

Visit of the IT department of a big Russian company (bank)

Roundtable with Russian IT companies

3. day: Transfer to Novosibirsk

Swiss evening

4. day: Meeting with the governor

Company visit

Visit of an incubator or university

IT round table with local IT specialists and entrepreneurs

Dinner

5. day: Transfer to Zurich via Moscow

THANK YOUFOR YOURATTENTION!

Julie BächtoldDeputy HeadSwiss Business Hub RussiaTel: +7 495 642 64 [email protected]

ppt fintech julie 2017 - swiss finance · embassy of switzerland swiss business hub russia 16th...

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