HUN FIN tecH 25HUN FINTECH25 - T-Systems · zsombor Imre, ádám farkas, márton báti aFFECTED...

HUNFINTECH 25HUNFINTECH25

2016

2016 HUNFINTECH25 -54

“Banks need innovative projects

more than ever; solutions that meet the

expectations of the Digital First - Mobile

Only generation.”

DEar rEaDEr,It Is aN ofteN-repeated fact tHat dIgItalIzatIoN Is aN UNstoppable process

tHat sHapes oUr preseNt aNd fUtUre. We Have seeN several examples of

INfocommUNIcatIoNs dIsrUptINg eNtIre INdUstrIes. baNkINg aNd fINaNce caN

also feel tHe effect, forcINg decIsIoN-makers to pay closer atteNtIoN to

fINtecH compaNIes aNd tHe NeW fINaNcIal solUtIoNs It brINgs.

BuT wHaT is FinTECH?We believe it is an opportunity to make banks and financial institutions more open to digital transformation. In this sense, we are not talking about distinct players competing but rather about potential partnerships that form around the shared aim of improving customer satisfaction by creating a digital customer experience. both parties are aware of the strengths of the other. banks increasingly need innovative projects, solutions which meet the expectations of generations y and z, the “digital first - mobile only” generations.the majority of fintech companies, especially in Hungary, are young and small. they use digital technologies natively, which makes them innovative and flexible. this is how they find simple and fast financial solutions that meet the expectations of the future today.being market leader in infocommunications and a digital transformation partner partner, t-systems Hungary can build on its deep industry knowledge and extensive system integration expertise to bring these two worlds closer together.my colleagues and I work closely with financial institutions, and we engage ourselves in solving digital transformation problems every day. What will the banking architecture of the future look

Tibor Rékasi

like? How can fintech solutions, targeting the perfect digital user experience, work together with the traditional banking system?as a step in our forward thinking, we have created this publication to showcase the best fintech solutions available today, and also to provide an insight into defining trends and data about the banking industry’s digital future.


8 10

12

Digitalization: user demand driving digital transformationkrIsztINa HorvátH

The Jury

HUNFINTECH25

44

24 25

40

46HOTFINTECH75 Trendsetting FinTech companies around the world

DigiTal TransFOrMaTiOngabrIella csaNak

THE gaME is On in THE FinanCial sErviCEs MarkET balázs rakovszky

nEOBank, MODulariTy, aPi-Bankingákos kalmár

a snapshot of digital finance in Hungary INfograpHIc

about

published by: T-Systems Hungary Coaddress: 1117 budapest, budafoki út 56. publisher: Tibor Rékasi, chief executive officer

editor: FinTech Group Ltdeditor in chief: Gábor LemákIn partnership with: GKI Digital Ltd

42How big is the FinTech universe? INfograpHIc

48a snapshot of digitalization in Hungary INfograpHIc


DigiTalizaTiOn: usEr DEManD Driving DigiTal TransFOrMaTiOnaccording to a digitization study of the

digital vortex, about 40 percent of traditional

companies will suffer significant losses in

their position or find themselves completely

out of their respective markets within the next

five years. Digitalization is reshaping markets

faster than any previous force and has a major

effect on traditional companies. The rapid

pace of change is dictated primarily by well-

funded startups, digitally active competitors,

and players reaching over from other markets.

The study was published by the global Center

for Digital Business Transformation, a joint

initiative by switzerland-based iMD and Cisco.

the researchers believe that finance is one of the five industries most affected. banks who refuse to utilise digital tools and solutions opt out of the estimated Usd 405 billion digital value at stake that is created through digitalization, leaving it to new or more innovative competitors to take. the same applies to Hungary. over the past few years, around 50 fintech enterprises took off in Hungary, aiming to reinvent banking processes; this poses a challenge for traditional financial institutions. most of these companies are startups offering cash flow services, prepaid banking solutions, mobile payment, bitcoin-based banking transactions, or crowdfunding. larger banks with more complex service portfolios are much slower to switch to digital, in part due to the obligation to comply with legislation. at the same time, international players have also entered the Hungarian market in addition to local fintech companies.

sOCiETy is rEaDy FOr DigiTalizaTiOnseveral surveys, including the World economic forum global Information technology report 2016, have found Hungarian society to be relatively ready and open to use digital services. a comparatively large proportion of individual users are using digital technology, and while banks focus on legal compliance and capital requirements, fintech startups offer simpler and more accessible alternatives to customers open to digital solutions.

“ with the right investment in

technology, traditional players can

modernise their operation.”THE rising ExPECTaTiOns OF CusTOMErsIn addition to transparency and reliability, customers increasingly expect innovative, user-friendly, secure, and regularly updated banking solutions to be available on various devices. the fintech models offer the opportunity to banks and financial institutions to meet customer demand. However, to do this, one must understand how fintech companies work and study and apply the latest technologies. Investing in the right technology allows traditional players to modernise their operation and offer real-time financial consulting, a simpler and more flexible virtual customer service from home, or a more creative and cooperative digital working environment for employees.

In every industry, the greatest added value comes from those digital solutions which establish an efficient business flow between It and operations. cisco offers a digital platform that includes not only network and security solutions but can also support digital business models. cisco’s innovative solutions help banks and finance enterprises translate their digital capabilities into a competitive advantage.

krIsztINa HorvátH managing director, cIsco Hungary


The Jury

isTván lEPsényi

State Secretary

Ministry for National Economy

PéTEr szilágyi

Associate Professor of Finance

CEU

laJOs BarTHa

Director

Hungarian National Bank

ágnEs süTő

Director

Hungarian Banking Association

kriszTina HOrváTH

Managing Director

CISCO Hungary

TiBOr rékasi

CEO

T-Systems Hungary

lászló MOlnár, Dr

CEO

GKI Economic Research Co.

áDáM Pál Turzó

Analyst

Portfolio On-Line

gáBOr lEMák

Managing Director

FinTech Group


HUNFINTECH25

aDDED FinTECH valuE PrOPOsiTiOnpayment services to everyone

TargET MarkETcommercial companies

liFE CyClEactive in the market for over 1 year

PEOPlE BEHinD THE sOluTiOnzsombor Imre, ádám farkas, márton báti

aFFECTED COMMErCial Banking aCTiviTycash transactions

aFFECTED Banking sEgMEnTcard payment

is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE? yes, and the company has them

unDErlying DisruPTivE innOvaTiOnoptimised contracting and customer service, innovative and robust payment transaction market solutions

n a M E O F T H E F i n T E C H s O l u T i O n

B-Payment www.b-payment.hu

b-payment co

we believe this is a promising fintech solution because• as an independent service provider, it offers commercial

(online) and physical (pos) banking services, along with the necessary devices;

• free plugins, well-documented, fast and quick integration for e-commerce vendors;

• offers novel services (e.g. “internet banking” for card transactions, settlement in 13 currencies) with a novel business approach (e.g. no loyalty plan or startup fee).

CarD aCCEPTanCE inDEPEnDEnT POs OnlinE PayMEnT sOluTiOn

FinTECH - THE DEFiniTiOnBy international understanding, FinTech companies are:• mainly,butnoexclusively,startups;• usethelatest technologies,ornovel

digital approachesbasedonsuchtechnologies,inthefinancialservicesmarket.

sHOrTlisT CriTEriaForourHUNFINTECH25publication,wewerelookingforcompanieswithaHungarian backgroundwhoprovidesapromisingfuturesolutioninthefinancialservicesvaluechainbyapplying novel digital models or using novel digital approaches to offer or mediate financial servicesintheretail and/or business segment,ormakefinancialservicesmoresecureorefficient,andtypicallyfitthefollowinggeneraldescription:

• theservicewaslaunchedafter 2010,buthasbeenlive-testedforatleast6monthssinceitsintroduction;

• thecompanyqualifiesasamicroorsmallenterprise,andhasastaff of less than 50dedicatedtothefinancialserviceinquestion;

• revenuecollectedfromthefinancialservice/solutionistypicallyunder HuF 300 million;

• accordingtoofficialrecords,thecompanyisnot subject to liquidation and has not filed for bankruptcy;

• thecompanyisnotalarge and long life supplier.

sElECTiOn PrOCEss• Inthesummerof2016,FinTech

Groupmappedoutthelocal FinTech ecosystemandidentified75players.

• 34 companies were shortlistedfromtheHungarianFinTechecosystem.

• Apanelof9 independent expertsactedasjurytoselectthe25mostpromisingHungarianFinTech(andInsurTech)companies.Thejurylookedatwhetherthesolutionisorwillbeviableinthelocaland/orinternationalfinancialmarketsinthenext2-3years.

• Rankingtheselectedcompanieswasnottheaimoftheprocess.Rather,itwastoshowcasethewidestpossiblerangeofpromisingsolutions.


aDDED FinTECH valuE PrOPOsiTiOnmobile banking revolutiontargeting spending behaviours

TargET MarkETWishes to sell the solution to banks

liFE CyClEactive in the market for just 1 year

PEOPlE BEHinD THE sOluTiOnattila ráczpop septimiu


aFFECTED Banking sEgMEnTretail bankingcommercial banking

is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE? No

unDErlying DisruPTivE innOvaTiOnNot only categorises purchase transactions automatically, but also creates customer profiles which allow service providers to target users with personalised offers, coupons and discounts.


Banchwww.banch.co•MagicSolutions

PFM PErsOnal FinanCEs TraCking aPP

aDDED FinTECH valuE PrOPOsiTiOncomparing banking products

TargET MarkETretail and sme markets; financial services market through mediation


PEOPlE BEHinD THE sOluTiOnbalázs sándorfi

aFFECTED COMMErCial Banking aCTiviTysales

aFFECTED Banking sEgMEnTretail bankingcorporate banking


unDErlying DisruPTivE innOvaTiOnpresales for financial services in the digital spacedigital intermediary solution


Bankmonitorwww.bankmonitor.hu

bankmonitor ltd PriCE COMParisOns aggrEgaTOr

we believe this is a promising FinTech solution because• it reinvents the business approach to personal finance

management (pfm), a way of tracking personal spending;• offers a new approach to customer data, card usage data

management;• its platform is valuable to banks, vendors and users alike,

and it maximises revenue by tailoring personal offers after card-based transactions.

we believe this is a promising FinTech solution because• it reinvents the sale of financial products in the digital

space. the digital marketplace has created a demand for searchability and comparability in the financial services market;

• puts client acquisition in a new context by inserting itself into traditional sales value chains;

• has a novel digital intermediary approach, which follows the logic of the marketplace and helps users quickly find the financial product that is most suited to their individual needs.


aDDED FinTECH valuE PrOPOsiTiOnthe offers of 30+ banks in one place

TargET MarkETretail market; financial services market through mediation

liFE CyClEactive in the market for over 5 years

PEOPlE BEHinD THE sOluTiOnpéter gergely

aFFECTED COMMErCial Banking aCTiviTysales



unDErlying DisruPTivE innOvaTiOnpresales for financial services in the digital spacedigital intermediary solution


Bankráció.huwww.bankracio.hu•BankrációLtd

PriCE COMParisOns aggrEgaTOr

aDDED FinTECH valuE PrOPOsiTiOnsmartest payment. Quick, convenient and secure online payment at market leader pricing, due to its special business model.

TargET MarkETcard payment solution for webshops (b2b)p2p money transfer for retail clients


PEOPlE BEHinD THE sOluTiOnTamásBírósándor kiss




unDErlying DisruPTivE innOvaTiOnpayment services might even be available free of charge; revenue is generated from advertising. Quick contracting, convenience and pricing are their key strengths.


BariOnwww.barion.com

barion payment co

PayMEnT gaTEway MOBilE PayMEnT sHaring ECOnOMy C2C P2P E-MOnEy

we believe this is a promising FinTech solution because• it reinvents the sale of financial products in the digital

space. the digital marketplace has created a demand for searchability and comparability in the financial services market;


• has a novel digital intermediary approach, which follows the logic of the marketplace and helps users quickly find the financial product that is most suitable to their individual needs.

we believe this is a promising FinTech solution because• Has e-money license (for issuing electronic currency),

based on which the company can quickly acquire retail (e.g. mobile payment) and corporate (e.g. online card payment) clients for various cash transaction services through e-kyc ( electronic know-your-customer process)

• barion smart gateway can be set up within a minute• they have created a novel business model for vendors, part

of which is making use of big data.


aDDED FinTECH valuE PrOPOsiTiOnoffers a comprehensive solution to bank and asset manager clients by letting them share well-diversified and personalised portfolios with a wider audience in a fully automated way, one that also allows for social and environmental considerations.

TargET MarkETbanks, asset managers, financial consulting, retail


PEOPlE BEHinD THE sOluTiOnMiklósKovács,FerencSzalai, GergelySzántó,BalázsFaluvégi

aFFECTED COMMErCial Banking aCTiviTysavings

aFFECTED Banking sEgMEnTretail bankingprivate banking

is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE? yes, but the company has not obtained them yet

unDErlying DisruPTivE innOvaTiOnsecure, automated, customised and cost-effective portfolio management to the wider public, available even for accounts worth only a few thousand euros. Uses the latest achievements in modern finance theory, technology, and user experience design.


BlueOpeswww.blueopes.com•BlueMorphoInvestmentsCo

assET ManagEMEnT rOBO-aDvisOrsOCially anD EnvirOnMEnTally rEsPOnsiBlE invEsTMEnT

aDDED FinTECH valuE PrOPOsiTiOnbuxa is a turnkey mobile payment application and an underlying service, which allows for the smartphone to be used as a wallet.

TargET MarkETfinancial institutionsvendors, service providers


PEOPlE BEHinD THE sOluTiOnmárton zimmer


aFFECTED Banking sEgMEnTretail bankingcard operations


unDErlying DisruPTivE innOvaTiOnInstead of a costly infrastructure, anyone with a smartphone or a com-puter in a store can accept buxa payments. buxa payments immediately appear on the smartphone of the receiver, and can be used to make other buxa payments or can be transferred to an own bank account.


Buxawww.buxa.eu•E-MoneyClearingSystem

P2P PayMEnT MOBilE PayMEnT ClEaring HOusE

we believe this is a promising FinTech solution because• they provide the latest technologies, from digital

onboarding through portfolio setup and risk assessment to consulting, in their robo-advisor;

• when creating an investment portfolio, options can be ranked based on sustainability; this allows investors to scale their portfolios by social or environmental responsibility and sustainability;

• their turnkey solution maximises conversion at every step of the digital customer journey.

we believe this is a promising FinTech solution because• buxa is a turnkey mobile payment solution that offers

cashless payment based on the latest technologies;• in the process of testing buxa mobile payment, an

electronic clearing solution emerged which executes cash payments in real time;

• the buxa-based clearing solution can be integrated with banks’ current account management systems; this allows for the quick setup and launch of real-time p2p cash transfer services.


a FinTECH-MEgOlDás érTékaJánlaTaxxx

a FinTECH-MEgOlDás CélPiaCal

a FinTECH-MEgOlDás élETCiklusat

a FinTECH-MEgOlDás MÖgÖTTi szEMélyEkl

érinTETT kErEskEDElMi Banki TEvékEnységp

érinTETT Banki szEgMEnsEkl

FElügyElETi EngEDélyN

a FinTECH-MEgOlDás MÖgÖTTi“DisruPTivE” innOváCióxxx


Card Fraud Preventerwww.initon.com•InitonLtd

aDDED FinTECH valuE PrOPOsiTiOnlocation-based fraud prevention for card transactions

TargET MarkETfinancial institutions

liFE CyClEmarket testing in progress

PEOPlE BEHinD THE sOluTiOnszilvia HorváthTamásKókai


aFFECTED Banking sEgMEnTbanking securityfraud detection/prevention


unDErlying DisruPTivE innOvaTiOntransaction authorization based on mobile phone location and the location where a transaction is initiated

Bank CarD FrauD PrEvEnTiOn lOCaTiOn CHECk

we believe this is a promising FinTech solution because• it uses a novel, mobile location-based approach to detect

bank card fraud;• financial institutions can automatically ensure that a client’s

account is only charged if the location of the card payment is the same as the location of the client. If these criteria are not met, the client can authorise a transaction via sms;

• the solution has the potential to make use of data (cell data from mobile providers) to make cash transactions safer.

aDDED FinTECH valuE PrOPOsiTiOnconnecting cars with each other and smart cities to save lives and make traffic more efficient

TargET MarkETvehicle manufacturersroad operators


PEOPlE BEHinD THE sOluTiOnJózsefKovács,LászlóVirág, andrás takács, szabolcs patay

aFFECTED insuranCE aCTiviTyNon-life

aFFECTED insuranCE sEgMEnTliability insurancecomprehensive car insurance

is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE?No

unDErlying DisruPTivE innOvaTiOnUsing Internet of things technology, a new business model for insurance products can be developed


Commsigniawww.commsignia.com•CommsigniaLtd

COnnECTED Car v2x (vEHiClE-TO-x) COMMuniCaTiOn

we believe this is a promising FinTech solution because• its traffic optimisation communication system can advise

the creation of new insurance products;• the combination of software and hardware in the solution

may make road accidents less likely to happen, and make driving safer and more efficient;

• the technology gathers data (e.g. driving style) that allows for a more accurate risk assessment, and, consequently, customised pricing.


aDDED FinTECH valuE PrOPOsiTiOncommunity funding for creative initiatives

TargET MarkETretail

liFE CyClEactive in the market for more than 5 years

PEOPlE BEHinD THE sOluTiOnolivér szarvas

aFFECTED COMMErCial Banking aCTiviTycash transactionssavings

aFFECTED Banking sEgMEnTretail banking


unDErlying DisruPTivE innOvaTiOnalternative community finance platform. In addition to donating money, a cause can be supported by doing flash Work for the project.


CrEaTivE sElECTOrwww.creativeselector.hu

Newtones Nonprofit ltd CrOwDFunDing

we believe this is a promising FinTech solution because• it offers alternative funding, typically for community and

awareness-raising events or creative endeavours. the platform brings projects that need funding and donors together in the digital space;

• it lays the foundations of donation-based crowdfunding in Hungary by digitalizing the entire customer journey;

• one of the few Hungarian crowdfunding sites that are still running.

aDDED FinTECH valuE PrOPOsiTiOnWe deliver an app as if it had been borne of your own creation/inspiration.

TargET MarkETvendors, service providersend-users


PEOPlE BEHinD THE sOluTiOnbalázs Inotay


aFFECTED Banking sEgMEnTcard operations


unDErlying DisruPTivE innOvaTiOncloud-based, real-time preprocessing solution for value exchange transactions… mobile, web environment… Qr, Nfc, ble


EM3www.eclectiqminds.com

ecleqtic minds

FunCTiOnal COMPlEx aPi inTErFaCEs MOBilE MOnEy ManagEMEnT Qr nFC BlE

we believe this is a promising FinTech solution because• they are building a cloud-based solution for card

transaction settlement, which allows for the simple and quick creation of web and mobile front-ends for the apI supplied by the processor, for example to program managers organising prepaid card issuance;

• they have created a missing layer by building on the processor and third party service provider apI;

• they offer plug&play value-added services using processor apI.


DigiTal TransFOrMaTiOnFinTECH OPPOrTuniTiEs

FOr Banks

NokIa ceo stephen elop published a memo at the beginning of 2011 titled “burning platform”. It has a lesson for all of us about how even the strongest and most innovative compa-nies can fail. If the company culture is not up to the latest challenges, it will react too slowly, and that has irreversible consequences. In 2011 NokIa’s leader realised that in only 4 years apple and google had become a threat to their posi-tion as market leader, but it was too late, nobody could stop the process. an open innovation culture and cooperation with startups that bring in new perspectives can set the foundation for long-term advantage in the market.digital transformation is an opportunity for financial institu-tions to establish a new organisational culture, a framework of cooperation with the most innovative and most creative minds. some of these minds are already there within the organisation, and others are in the market as fintech companies. the largest international banks like barclays, bbva or Wells fargo have already started down the path towards open innovation, and actively seek partnerships with fintechs. they have realised that growth comes through learning from companies which, in a few years’ time, may threaten their market share and revenue through technology and the ability to attract capital.

THE gaME is On in THE FinanCial sErviCEs MarkET PsD2 OPEns THE way TO innOvaTiOn anD THE sPrEaDing OF DigiTal FinanCial sErviCEs

regulatory frameworks increasingly encourage cooperation as well. New legislation on cash transactions and payment services (psd2) as well as the open apI platforms’ standardi-zation create alternative uses of the incumbent infrastructure. We believe this is an opportunity for banks to attract fintech with the best innovation. regulators create the framework for a bank-as-a-service (baas) model, which essentially means that banking and financial services become modular. this shift is part of the digital transformation as it creates opportunities to establish alternative sources of revenue and capitalise on fintech knowledge and skills originating from outside of the organisation. t-systems has serious foot print in Hungary’s banking It Infrastructure and is ready to lead its digital transfor-mation by building apI Infrastructures and business ecosys-tems that integrate fintech companies. as system integrator, t-systems Hungary helps banks and fintech companies find each other and overcome their technological, business and regulatory differences to create a new essence.

gabrIella csaNak, senior Industry lead, t-systems Hungary, financial Institutions division balázs rakovszky, director, t-systems Hungary, financial Institutions division

a well structured and up-to-date iT infrastructure is the prerequisite of a successful digital transformation. it is, however, not enough by itself to maintain a competitive advantage in a constantly changing market environment. Digital success comes through the right mindset, a “fit” company culture. How can large organisations respond to innovation challenges, introduce efficient innovation practices and set up an entrepreneurial culture while managing everyday operation?

FrOM rEgulaTiOn TO BusinEss OPPOrTuniTythe banking industry is on the verge of a revolution – the european commission is opening up the financial services market on January 13, 2018. In the future, banks will have to compete with digital technology companies, online marketplaces and, of course, each other, in consumer markets. the psd2 directive creates a regulatory, business and technology framework which compels new market players and traditional banks to cooperate. psd2 is a regulation that leads to structural changes in the banking sector. banks will be obliged to offer a defined group of new market entrants free access to certain types of data in their current account systems. the directive sets out registration and license requirements for new market entries, and defines a set of rules under which banks will be obliged to grant service providers access while keeping systems secure. Under the directive, common rules will be established for open banking apI standards, and registration and technology requirements. In this environment, banks and financial institutions can gain an advantage in a changing market if they realise the potential in regulatory changes and technological development. those left behind may lose their greatest market value: direct access to customers. some banks will become infrastructure providers; others will offer bank-as-service or bank-as-platform backgrounds to fintech companies. this in itself might prove to be a viable business model, or become a new source of income for banks.

compliance means a cost to the bank and responsibility towards the clients. as a third-party service provider, banks can also acquire new clients in this way. mandatory access means that aIsps (account Information service providers) and pIsps (payment Initiation service providers) have to be granted regulated access to individual consumer account information, and use it to create value added services through digital technologies, e.g. Iot, predictive analysis, risk assessment. the content of accessible data will define the type of services to be created. as in every networked industry, the success of a service will depend on whether different infrastructures can be connected and coordinated. the european banking authority describes responsibilities and the rules of cooperation in its regulatory technical standards. at present, it is the source of some confusion as to whether the pds2 directive will enter into force on January 13, 2018. However, the open apI standards, related measures and the setting up of regulatory institutions will only have to be finished by october 2018; as more details of the regulations are revealed, the picture will clear. the playing field is being created in a year or two, which means that banks and financial institutions must think of their competitive strategies, development directions, and create promising partnerships now.


aDDED FinTECH valuE PrOPOsiTiOnoffers a comprehensive, cashless payment service for festivals both locally and internationally; offers prepaid solutions.

TargET MarkETb2b and b2c payment solutions

liFE CyClEthe prepaid solution has been live for almost 1 year, the cashless payment service has been active for more than 5 years

PEOPlE BEHinD THE sOluTiOnLászlóMárki


aFFECTED Banking sEgMEnTcard operations


unDErlying DisruPTivE innOvaTiOnfull-service cashless solution to festivals, a prepaid solution for both festivals and everyday life.


Festipay www.festipay.com

festipay co

PayMEnT sOluTiOnsPrEPaiD DisTriBuTiOn MOBilE PayMEnT POs inFrasTruCTurE sErviCE

we believe this is a promising FinTech solution because• it offers a full-scale cashless payment infrastructure

including card issuance, acceptance, payment settlement;• in addition to closed-loop pay cards, it now offers open-loop

prepaid pay cards with a mastercard logo, contributing to the establishment of independent banking in Hungary;

• prepaid pay cards can be obtained without visiting a branch office or signing a current account agreement. the customer journey is entirely in the digital space.

aDDED FinTECH valuE PrOPOsiTiOnforex broker company performance comparisons

TargET MarkETretail

liFE CyClEHas been active for just 1 year

PEOPlE BEHinD THE sOluTiOnDávidBajor,JenőJójárt

aFFECTED COMMErCial Banking aCTiviTysavings



unDErlying DisruPTivE innOvaTiOnmathematical-statistical algorithms analyse the activities of individual fx brokers to filter out suspicious activity and assess overall performance.


Forex Broker stars

www.forexbrokerranking.com•DivamiraLtd Fx TraDing COMParisOns

we believe this is a promising FinTech solution because• it offers a novel approach to selecting a forex broker by

making comparisons available between the performance of various brokerage companies;

• helps make sense of so-called tick data by offering visualisation;

• offers a way to assess the real yield on a portfolio and the real cost of the forex broker in a decentralised market.


aDDED FinTECH valuE PrOPOsiTiOnloans, credit online, directly from banks, take your pick!

TargET MarkETretail


PEOPlE BEHinD THE sOluTiOnbalázs pap

aFFECTED COMMErCial Banking aCTiviTyother/financial consulting


is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE? complies with the regulations

unDErlying DisruPTivE innOvaTiOnbanks’ products are displayed in a uniform structure and are comparable


Frix.Huwww.frix.hu•ComparitOnlineCo

OnlinE PrODuCT COMParisOn

HUNFINTECH25

we believe this is a promising FinTech solution because• comparison based market place of financial productsnin

the digital space. the digital marketplace created a demand for searchability and comparability in the financial services market;


• a novel digital intermediary approach that follows the logic of the marketplace and helps users quickly find the financial product that is most suitable to their individual needs.

aDDED FinTECH valuE PrOPOsiTiOnr infrastructure for your businessWe know the risk you take

TargET MarkETInsurance companies


PEOPlE BEHinD THE sOluTiOndávid kun, gergely márk, csongor somogyi

aFFECTED COMMErCial Banking aCTiviTyrisk assessment, actuary tasks, capital adequacy

aFFECTED Banking sEgMEnToperation


unDErlying DisruPTivE innOvaTiOnIn the past, we helped major dutch insurers rewrite their prototype quant models from excel, access and vba to r, as well as improve the already r-based solutions to take advantage of parallel programming and deployment to a server grid.


FunctionalFinances

www.ownr.io

functional finances ltd.

risk ManagEMEnT - sTaTisTiCs

we believe this is a promising FinTech solution because• they develop novel risk management solutions based on the

latest mathematical-statistical and computer procedures;• help financial institutions, investment banks and insurers

further develop their risk management solutions by creating quantitative models, validating risk models, and optimising algorithms;

• develop reporting systems to go with their risk management solutions.


aDDED FinTECH valuE PrOPOsiTiOnthe perfect solution to raise money for gifts, events and noble causes

TargET MarkETb2c: everybody online, b2b: smes, webshops, Ngos

liFE CyClEactive in the market for almost 1 year

PEOPlE BEHinD THE sOluTiOnzoltán kaprinay, gábor Heller, fruzsina donáth

aFFECTED COMMErCial Banking aCTiviTycash transactionssavings



unDErlying DisruPTivE innOvaTiOnalternative crowdfunding platform


gOOOD www.goood.hu•SkoopyLtd

CrOwDFunDing, FunDraising

we believe this is a promising FinTech solution because• it offers alternative funding for individual and

community events and projects. the platform brings projects that need funding and donors together in the digital space;

• it lays the foundations of donation-based crowdfunding in Hungary by digitising the entire customer journey;

• one of the few Hungarian crowdfunding sites that are still running.

aDDED FinTECH valuE PrOPOsiTiOndon’t let your money disappear!

TargET MarkETretail mobile application


PEOPlE BEHinD THE sOluTiOnMártonSzabó


aFFECTED Banking sEgMEnTretail bankingIt and operation


unDErlying DisruPTivE innOvaTiOntracking income and spending through an intuitive dashboard.


koinwww.koin.hu•KoinFinancesLtd

PFM PErsOnal FinanCEs TraCkEr

we believe this is a promising FinTech solution because• it helps us track our spending;• offers easy interpretation of our finances through its intuitive

dashboard, both on mobile and desktop;• one of the few applications with over 100 thousand

downloads in Hungary; the most popular non-bank finance mobile app among Hungarian users.


aDDED FinTECH valuE PrOPOsiTiOnour credit risk management software riskaware is based on experience gathered in london; it improves the efficiency of risk management and the use of capital by the continuous monitoring and stress-testing of bank assets; it also informs compliance with the basel Icaap requirements.



PEOPlE BEHinD THE sOluTiOntamár várkonyi

aFFECTED COMMErCial Banking aCTiviTyretail bankingcorporate banking

aFFECTED Banking sEgMEnTrisk management


unDErlying DisruPTivE innOvaTiOn


riskawarewww.riskaware.info

Qcr Quantitative credit research ltd.

risk assEssMEnT CrEDiT sCOring

we believe this is a promising FinTech solution because• it offers faster and more reliable credit risk assessment than

the other available solutions;• its novel approach features analysing the future earning

potential and bankruptcy risk of the applicant using various macroeconomic predictions and industry indicators. the method allows for the continuous monitoring and stress-testing of individual loans and bank portfolios;

• in 2015, the solution was featured among the 70 most promising fintech solutions in europe at the finovate conference.

aDDED FinTECH valuE PrOPOsiTiOnmetapay is an independent, individually developed transaction system, which can handle payments and other transactions (loyalty systems, coupons, entry, etc).

TargET MarkETfestivals, events


PEOPlE BEHinD THE sOluTiOngábor lévai


aFFECTED Banking sEgMEnTcard operation


unDErlying DisruPTivE innOvaTiOna single metapay card can be matched to several cash and point balances, which means that hundreds of different loyalty programs can be managed from a single card, with each balance kept separately.


Metapaywww.metapay.hu•innoRFIDLtd

CasHlEss PayMEnT sOluTiOns

we believe this is a promising FinTech solution because• it was the world’s first cashless solution to cater to a festival

with several thousand visitors;• it was the first in europe to introduce the Nfc mobile

payment option in festivals;• it was the first to launch cafeteria card acceptance that

allows multi-pocket pos sharing;• it was among the first companies to set up a closed-loop

and open-loop acceptance system.


aDDED FinTECH valuE PrOPOsiTiOnfraud prevention made simple



PEOPlE BEHinD THE sOluTiOntamás kádár


aFFECTED Banking sEgMEnTIt security


unDErlying DisruPTivE innOvaTiOndetecting card fraud using big data


seonwww.seon.io•SeonTechnologies

FrauD DETECTiOn

aDDED FinTECH valuE PrOPOsiTiOnbuy bitcoin for HUf, quick and easy, in 2 hours during working hours

TargET MarkETretail and small enterprise bitcoin trading


PEOPlE BEHinD THE sOluTiOnbarnabás debreczenidávid debreczeni

aFFECTED COMMErCial Banking aCTiviTysecurities tradingcurrency exchange


is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE? No, but has supervisory approval

unDErlying DisruPTivE innOvaTiOntrading in Hungary through a simplified customer interface, using electronic customer identification


shinraiwww.mrcoin.eu/hu•ShinraiLimited

TraDing in BiTCOin anD OTHEr DigiTal CurrEnCiEs

we believe this is a promising FinTech solution because• their big data-based solution can identify online card fraud

and username fraud (e.g. phishing);• their novel approach supports electronic client identification

(kyc), which can be a tool for digital onboarding;• financial institutions can make customer identification (e.g.

for internet banking or mobile banking) more comfortable and safer this way.

we believe this is a promising FinTech solution because• they were the first to offer bitcoin trading in Hungary, and

today almost all of Hungary’s bitcoin trading takes place here;

• to simplify trading, and in line with anti-money laundering legislation, they introduced a novel electronic customer identification solution;

• the entire customer journey, from onboarding to trading, is 100% electronic.


aDDED FinTECH valuE PrOPOsiTiOnthe co. In pay!

TargET MarkETbitcoin and litecoin acceptance for retail vendors, online stores


PEOPlE BEHinD THE sOluTiOnandrás lőwy & the drukka startup studio


aFFECTED Banking sEgMEnTcard division

is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE? No, has the official position of the Hungarian National bank

unDErlying DisruPTivE innOvaTiOnbitcoin and litecoin-based payment solutions for vendors through an easily integrated apI


TheCoinPay.comwww.thecoinpay.com•CoinPayCo

PayMEnT gaTEway sOluTiOn

aDDED FinTECH valuE PrOPOsiTiOnsimple card acceptance solutions for online vendors. free testing option, customer support.

TargET MarkETonline vendors, bricks-and-mortar stores, donation systems, Ngos


PEOPlE BEHinD THE sOluTiOnJános thaler


aFFECTED Banking sEgMEnTcard operation


unDErlying DisruPTivE innOvaTiOnpayment gateway aggregator that lists all Hungarian payment/card acceptance services and offers consulting


Transgatewww.bankkartyas-fizetes.hu

transgate Network ltdPayMEnT sOluTiOns FOr OnlinE sTOrEs CarD aCCEPTanCE

we believe this is a promising FinTech solution because• it was the first to introduce a bitcoin and litecoin-based

payment gateway in Hungary for stores and online vendors through an easily integrated apI;

• it was the first to offer bitcoin payment in taxis, which contributed significantly to the spreading of the acceptance of bitcoin;

• in 2015 it was best Hungarian fintech startup at the central european startup awards.

we believe this is a promising FinTech solution because• it aggregates card payment solutions by online store type

so that online vendors can quickly choose the best card acceptance option for their business;

• helps online vendors customise their payment solution.


aDDED FinTECH valuE PrOPOsiTiOnNontraditional bank accounts with no fine print!

TargET MarkETretail banking (domestic, international)corporate banking (domestic, international)


PEOPlE BEHinD THE sOluTiOntamás vizi


aFFECTED Banking sEgMEnTretailcorporate (sme)


unDErlying DisruPTivE innOvaTiOnIndependent online banking with no monthly fee, transaction-ba-sed pricing, no special hardware requirement, real-time, 24/7 night time and weekend settlement for internal transfers. one-time cash transfers without opening an account.


virPaywww.virpay.eu•CashTransactionServicesLtd

CasH TransaCTiOns virTual wallET FOrEign ExCHangE CurrEnCy ExCHangE 7/24 TransFErs

aDDED FinTECH valuE PrOPOsiTiOnget the full picture of your monthly finances easily and automatically, in 5 minutes

TargET MarkETWish to sell the solution to banks


PEOPlE BEHinD THE sOluTiOntamás gémes, györgy mudri

aFFECTED COMMErCial Banking aCTiviTyother/financial consulting


is THE sOluTiOn suBJECT TO FinanCial sErviCEs liCEnsE?? No

unDErlying DisruPTivE innOvaTiOnmay qualify as an aIsp under psd2 with their personal finance management solution. they claim to be able to automatically visualise customer transactions from certain Hungarian banks’ data.


wyzewww.app.wyze.me•Wyze.me

wyzE.MEPFM, PErsOnal FinanCEs TraCkEr

we believe this is a promising FinTech solution because• it is the first independent account management service

provider in Hungary approved by the Hungarian National bank;

• they recognised gaps in the Hungarian cash transaction services market;

• they are planning to introduce a novel business model based on transparent pricing.

we believe this is a promising FinTech solution because• you can use it to track your spending;• you can easily analyse your finances through an intuitive

mobile and desktop dashboard;• can automatically process bank account transactions

through an online bank access and smart sort items.


nEOBank, MODulariTy, aPi-Banking

bancorp, primarily in the United states, provides payment infrastructure to third party service providers to create payment products in a modular infrastructure built from standardised parts. a modular infrastructure allows for the creation of new business models, from transaction-based through flat-rate to freemium, or any combination of these. modularity and the apI-based architecture provide an opportunity for the banking sector to keep up with the pace of rapid digitalization, even while keeping its existing core systems. the new architecture shifts the current product-based operation towards a more customer-based appro-ach by offering mass customization. this process is regulated by the european commission’s psd2 directive, which requires open access and open, standardised apIs.

We all know LEGO; for many of

us, they were the ultimate toy.

LEGO uses small, functional

elements to build a new essence,

which is a close analogy to how

API infrastructures work. “API

infrastructure” is perhaps the most

discussed, and most controversial,

topic in the financial sector these

days.

We currently hear a lot about apI banking and open apI, which signals a transition towards modularity in financial services. some experts view this as the democratisation of incumbent infrastructures; others believe it will bring economies of scale to niche markets. banks react differently to the challenge. several international banks realised the significance of digitalization and apIs in rebuilding banking architectures. an often cited example is bbva bank’s apI marketplace, where third party service providers and devel-opers are offered a chance to create alternative uses to the banking infrastructure and the data value in it. also, the who-lesale bank role is gaining a new meaning in europe thus the b2b infrastructure provider behind banks. fidor bank in germany, for example, is a retail bank, wholesale bank, and It developer in one. fidor has apI connections with banks, on the one hand, and fintech startups, on the other.

ákos kalmár, director, t-systems Hungary, corporate division


sinCE 2010, alMOsT

HuF 13,000 BilliOnwEnT TO FinTECH COMPaniEs

HOw Big is THE FinTECH univErsE?

HuF 7000 billion

HuF 6000 billion

HuF 5000 billion

HuF 4000 billion

HuF 3000 billion

HuF 2000 billion

HuF 1000 billion

0

1200

1000

800

600

400

200

0

2010 2011 2012 2013 2014 2015

FinTech guru Brett King believes that there are about 30,000 FinTech companies in the world

338459

610772

871

1108

investment

number of companies

6056

3451

1248864690487

glOBal FinTECH snaPsHOT

source: accenture: “global fintech Investment growth continues in 2016 driven by europe and asia” – april 2016

brett king, australian futurist, opinion leader in the finance sector – the number of fintech companies: Novathon speech, budapest, June 2016

yOung TiTanspromising solutions

uniCOrnsworth min

usD 1 Billion

PiOnEErsappeared 6-10 years ago

HOTfINtecHTHE MOsT iMPOrTanT FinTECH

COMPaniEs in THE wOrlD

1. lEnDing, lOan, insTallMEnT

2. PayMEnT, PayMEnT gaTEway

3. savings, wEalTH, invEsTMEns

4. MOnEy TransFEr, P2P PayMEnT

5. CryPTOCurrEnCy & BlOCkCHain

-4544source: citigroup, citi gps – “digital disruption – How fintech is forcing banks to a tipping point” – march 2016

2016 HunFINTECH25


TOP10 Banks7 OuT OF 10 HavE a MOBilE

aPPliCaTiOn

TOP10 insuranCE COMPaniEs

7 OuT OF 10 HavE a MOBilE aPPliCaTiOn

1. OTP Bank

2. uniCredit Bank

3. k&H Bank

4. raiffeisen Bank

5. MkB Bank

6. Erste Bank

7. CiB Bank

8. Budapest Bank 9. Takarék Bank 10. FHB Bank

1. nn

2. alianz

3. groupama

4. generali

5. aEgOn

6. Posta Biztosító

7. k&H Biztosító

8. uniQa 9. grawE 10. Cig Pannónia

Hungarian MOBilE PayMEnT

aPP rankings(byGooglePlaydownloadandratings)

simple - vedd egyszerűen [100–500K/4,3]

iCsekk [50–100K/4,1]

OTPay [10–50K/3,3]

Erste MobilPay [10–50K/2,9]

axa Bank MobilosOké [10–50K/4,6]

Telekom MobilTárca [10–50K/3,8]

Barion [1–5K/4,4]

Telenor wallet [n.a./3,6]

vodafone wallet [n.a./3,3]

Hungarian DigiTal

FinanCE snaPsHOT

TOP3 Banking aPP(byGooglePlaydownload)

1. OTP SmartBank (100–500K)2. k&H mobilbank (50–100K)3. raiffeisen Mobil(50–100K)

TOP3 insuranCE aPPs(byGooglePlaydownload)

1. allianz XJátszma (10–50K)2. Telekom Utasbiztosítás (10–50K)3. aegon AngyalPro (5–10K)

a fintech company today will use

mobile only approaches to create the

digital financial service of the future.

therefore, it makes sense to look at

the maturity of the largest players in

the Hungarian financial sector through

their mobile solutions.

THE Hungarian FinanCial sECTOr’s PrEParEDnEss FOr

THE sMarTPHOnE Era

bank and insurer rankings: Hungarian National bank – golden book of 2015 – balance sheet data from assets

download and ratings: google play store, september 2016

-4948

MOsT POPular MOBilE PayMEnTs

(by frequency of use)

48% parking

45% online shopping

43% pay roads, tolls

40% account and balance queries

40% cash transfers

29% prepaid phone payments

27% tickets, entrance fees

25% utility bills, check transfers

20% food orders

9% coupon programmes

8% taxi fares

4% vending machines

4% payment in stores

MOMENTUM:

The digital space requires new Financial

products. Digital Financial products require

a new culture and new approaches.

DigiTal usE Hungary

• ~8 million adult residents

• ~5,5 million daily adult internet users

• of which 45%, ~2,5 million purchased products online in 2015, they are considered “mature” digital users.

• ~1,8-2 million online buyers have smartphones.

• the majority, ~1,5 million, uses android.

• only about a third, ~600-660 thousand smartphone owners made a purchase with their smartphone in 2015.

• Within online buyers, only about ~280-290 thousand fusers paid through mobile in 2015.

2016 HunFINTECH25

source: gkI digital consumer survey, January 2016. data was gathered through an online questionnaire from 3000 respondents. the target group and the method of data collection ensure that the information is representative of Hungarian online consumers.

HUN FIN tecH 25HUN FINTECH25 - T-Systems · zsombor Imre, ádám farkas, márton báti aFFECTED...

Documents

Transcript of HUN FIN tecH 25HUN FINTECH25 - T-Systems · zsombor Imre, ádám farkas, márton báti aFFECTED...