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2020 FinTech Vs BanksGlobalisation of the FinTech industry

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About Us

Welcome

Tim Poultney CEO at Veber

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Agenda

Welcome 19:00. Compare the Cloud 19.20 10 lessons from a Silicon Valley Start up 19.30 Veber survey results & Currency Cloud 19.50 Networking 20:00 Let’s Eat 21.00 Networking & Coffee’s

The FinTech versus Banking debate agenda

The Future of FintechNeil Cattermull

Director, Compare the Cloud

The Future of Fintech

The current trend is more of a decentralisation of access to create opportunities to for of the banking environments to interact in unprecedented ways!

Digital currency - Bitcoin and others emerging as the de-centralisation of currency transfer and distribution now comes of age

Peer-to-peer lending – matching lenders to borrowers directly

Algorithmic asset management or algorithmic trading – Artificial Intelligence using information management techniques to predict future outcomes within financial trading (BlackRock and Two Sigma, hedge funds that hired two former top Google engineers)

Crowdfunding - raising money/investment from a large number of individuals online

Payments - Specific forms of payment systems are used to settle financial transactions for products in the equity markets, bond markets, currency markets, futures markets, derivatives markets, options markets.

Also to transfer funds between financial institutions both domestically using clearing and real-time settlement systems and also internationally using the SWIFT network

Data collection - Research and compliance purposes

All of the above build and implement technology that is used to make financial markets and systems more efficient!

The Future of Fintech

The Future of Fintech - predictions I

Water and Cash – What do they have in common?

Liquidity

Banks don’t like liquidity – There are many reasons for this (Fees, Compliance etc)

If you have money, cash, you can always find ways around these roadblocks and like water, it can get around any obstacle that’s in its way!

We now have the technical advancements that simply enable this to happen!

Digital currencies will enable liquidity with a degree of traceability and trust!

The Future of Fintech

The Future of Fintech

The Future of Fintech - PREDICTIONS IIYour bank account – where will it be?

We have history/preconceived notions – our children do not and the large retail tech providers – have the reach and the shiny appeal

Google – Innovating with systems such as Google hands free

Apple – Within a few years have become the single largest mobile payments firm

Amazon – Have retail store front, end consumers and the distribution engine

The Future of Fintech - PREDICTIONS III

Your bank account – portable like your mobile number?

With the rise of digital currencies, this will enable true porting from one bank account to another with digital history – No paperwork required!

SUMMARY

Markets are changing and so are the people who use them! Money is going digital – it makes sense

Digital money is liquid – just as cash is today

Banks will become irrelevant - More boutique

Most unlikely companies will provide banking services

We will all be replaced with robots and code?

THANK YOU

Questions?

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Stuart Neal Working with some exciting and innovative start-up organisations

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Tip 1:

Clarity of vision

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Tip 2:

Growth vs Profits

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Tip 3:

Cash is King

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Tip 4:

Focus - don't get distracted

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Tip 5:

Take people on the journey with you 

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Tip 6:

Talk to your investors

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Tip 7:

People vs process

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Tip 8:

Calculated Risks

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Tip 9:

Build a network/distribution is key

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Tip 10:

IP and understanding value (getting the commercial

proposition right)

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FinTech versus BankingVeber consumer survey

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Why & how we did it.Veber consumer survey

Could you describe the following FinTech terms if asked?

Why?We wanted to find out what users felt towards FinTech, the updates to traditional banking and what are their thoughts on the Future of Banking

ScopeWe asked 200 people between the age of 18 - 65 years old across England using Google Surveys

27Could you describe the following FinTech terms if asked?Bitcoin, Blockchain, Crowdfunding, Mobile payment, Payment gateway, Digital wallet

Overall more than 52% of people could not describe the suggested FinTech terms, split almost equally between males and females (51% vs 48%)

Mobile payment was the most commonly recognised term with 32% of those surveyed selecting it

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Which of the following non-bank owned products are you likely to use in the next 12 months?

The findings showed that over 50% of people would not use non-bank owned products. Females were more likely (51%) than men (47%) to opt out of using a non-bank owned product.

Both males and females showed a preference for online payment services, with more females than men (33% vs 38% respectively)

Both males and females chose mobile payment as the 2nd most popular choice (25% and 18% respectively)

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On a scale of 1-5, how comfortable do you feel using non-bank owned products?

Overall 27% of people were uncomfortable in using non-bank owned products, with males more uncomfortable than females (2.7 ave vs 3.0 ave.)

The findings also showed that those between the ages of 55-64 were more comfortable to use non-bank owned products than those aged between 18-24 years (3.6 ave. vs 2.6 ave.)

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What puts you off using non-bank owned products?

53% were put off using non-bank owned products due to security reasons. These findings revealed females showing more concern of security than males (57% vs 50%)

The results also revealed 35-44 year olds were perhaps the age group most comfortable using non-bank owned products, with a majority of 43% selecting ‘none of the above’

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The findings suggest that people generally don’t believe that FinTech will replace traditional banking by 2020 (61%)

Many people thought that this would be replaced by 50% however, with 35-44 year olds selecting this statement the most (30%)

Do you believe FinTech will replace traditional banks by 2020?

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“ Security is the top concern amongst women, however that doesn’t stop them spending online and using FinTech

—

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01 Security Compliance

02 Education

03 User experience

Compliance, regulations

Security

Marketing, advertising, Landing pages, videos, seminars

Education

Speed, data, personalisation, security

User experience

Recommendations

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01 ComplianceDespite Fintech innovation

there are still compliance levels

that need to be met

02 Security

04 Public Cloud

05 Iaas

03 Performance

06 Hybrid Services

Our thoughts at Veber

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FinTech Technology

The highest concern and is an

ever changing landscape and it

is no longer just external threats

Public cloud is an essential part

of the mix it cannot deliver all

the requirements for FinTech

Customised solutions offer the

best of public cloud and private,

secure datacentre environments

Reliable performance is

essential to both start-ups and

mature platforms

IaaS allows solutions to be

hosted or co-located that

cannot be delivered from the

cloud

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01 ComplianceCurrency cloud benefit from

Veber’s ISO/PCI and other

compliance standards

02 Security

04 Private Cloud

05 IaaS

03 Fast Growth

06 Collaboration

Our FinTech experience

With a custom designed secure

infrastructure, Security can be

trusted

Currency Cloud use AWS to

deliver front-end services and

scalability for on-demand traffic

Currency Cloud integrate their

public and private platforms as

well as their dev/UAT to get the

best return

Using the latest generation of

servers they have managed to

reduce their development

spend by £5M

Currency Cloud use Veber for

hosted infrastructure of their

back end services

“At Currency Cloud we have created the world’s most trusted global

payments platform that can be easily integrated into the next

generation of business payment companies.

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Thank you for the opportunity to present to you today. We hope you enjoy your meal