Transforming how people invest

Presented at the event

FinTech, Platforms & Wraps – The Future of Wealth Management Technology

by Dilip Sankarreddy

August 4, 2016 Event location: New South Wales, Australia

www.QuietGrowth.com.au

What is the distinguishing power of fintech startups? ●  How fintech startups established success

●  How they differentiate from traditional wealth management

●  Can effective collaboration with fintech firms drive innovation?

●  Looking into the future of fintech – the next steps and opportunities

For discussion

●  Focus Address a specific need. Outperform the traditional incumbent in that area of focus.

●  Better customer engagement Understand the expectation of the target customer better. Engage better with that specific customer segment. Better user experience.

●  Smarter use of technology Better designed product for customer delight. Experiment with the latest technologies for better delivery of value/service. Rapid improvement iterations based on customer feedback.

●  Passionate founder-led teams Life goals of founders are aligned with the value created for the customer. Team members are usually incentivised to outperform.

How fintech startups established success 1/2

●  Freedom to do the right thing Lesser pressure from stakeholders to compromise on thinking on behalf of the customer.

●  Embracing the long term approach Visualise the future and build it. Incumbents fear cannibalisation, and less likely to adopt new business models.

●  Complacency of incumbents Incumbents ignored adopting technology to serve customers better. Less attention to reinventing self. Left the door wide open for fintech startups to capture mindshare and earn goodwill from customers.

●  Increasing support to implement the vision Increase in investor community whose goals align with the ambition of the startup founding teams.

How fintech startups established success 2/2

●  Lower fee significantly increases the investment returns for the clients, especially in the era of low returns

●  Algorithms eliminate the prospect of human errors in providing investment advice ●  Superior online interface eliminates the need for human interaction for advice

and investing

●  Automated investment managers, such as QuietGrowth, are also gaining customer goodwill by offering highly diversified portfolios of lower cost funds

How fintech startups differentiate from traditional wealth management

By automating. To enable providing a superior service at a lower fee.

Can effective collaboration between banks and fintech firms drive innovation?

Yes!

What banks can offer What banks can get

●  Funding to enable aiming for moonshots

●  Distribution muscle for proven models to scale

●  Insights into a new world ●  Hedge against their current

verticals becoming irrelevant ●  Learnings from execution

machines (that is, successful startup founding teams)!

Looking into the future of fintech ●  Traditional incumbents will accept the significance of fintech startups.

Some incumbents will resist the change and might fail. The rest will collaborate.

●  Four horsemen of fintech: Payments, Lending, Investing & Insurance.

●  Artificial intelligence, machine learning and various automation technologies will become mainstream.

●  Emergence of a handful of fintech hubs across the world.

●  Significant productivity increases in economies that embrace fintech.

●  Competitive advantages will be enjoyed by nations that promote fintech.

Hong Kong

Sydney

London

Bay Area

Berlin New York

Looking into the emergence of fintech hubs Regional fintech hubs will dominate the innovation, create new specialised jobs, and lead the transformation of the financial world

Singapore

Over the next 10 years, at least one in four working professionals in certain developed nations will be investing part of their savings in an online automated investing service.”

“

- Derived from QuietGrowth analysis and various sources including AT Kearney 2015 Robo-Advisory Services Study

Looking into the future of Automated Investment Managers