Susanne Chishti, FINTECH Circle's CEO on the "Effect of Disruption on traditional Financial Services...
10
Click here to load reader
-
Upload
fintech-circle -
Category
Economy & Finance
-
view
471 -
download
2
description
FINTECH 2014 Conference - Keynote Presentation: FINTECH Circle works with the most innovative and disruptive brands in financial technology and connects them with senior thought leaders and financiers. Banks and insurance companies see technologies emerging that will change their own business for the better. FINTECH Circle will enable emerging financial technology firms to execute their vision and to successfully expand their FINTECH businesses. The most senior Directors and successful entrepreneurs in the Financial Services sector will be empowered to make a real difference by adding strategic value both as angel investors and/or Non-Executive Directors (NEDs) to the game-changing innovators of the future.
Transcript of Susanne Chishti, FINTECH Circle's CEO on the "Effect of Disruption on traditional Financial Services...
The Effect of Disruption on traditional Financial Services Models
Susanne Chishti, CEO
FINTECH Circle www.fintechcircle.com
Fin-Tech 2014 Conference: Modernising Financial Services 9 October 2014 – Edinburgh
Do Banks underestimate the danger from FinTechs?, WSJ 3 Oct 2014
FINTECH Conference
Banking Conference
Which side are you on?
FINTECH Reports & Resources
Disruptive Technologies Examples
• Data & Analytics – collect diverse range of financial data on individuals, corporates and particular market activity ie credit reference
• Platforms – P2P platforms, trading and personal wealth platforms, aggregators
• Payments – online/mobile, FX transfers
Mobile NFC tokenized payments at point of sale
Mobile phone and POS terminal manufacturers have a compelling reason to integrate NFC into their devices now.
Challenges for established Players
• Technology as double-edged sword
• Existing IT infrastructure (legacy systems, …)
• Cost-cutting
• Tougher capital regime leads to drop in revenues
• Regulation (high compliance costs, changes ..)
• Little room left for disruptive technologies
« They all want to eat our lunch! »
Jamie Dimon, CEO, JP Morgan Chase
Cooperate with FINTECH Firms
Emergent FINTECH
Small, innovative firms with disruptive technologies
Accelerator Programs
Venture Capital Funds
Traditional FINTECH
Large tech firms supporting the financial services sector
Existing close partnerships with IT vendors
Tech Giants
Apple, Amazon, Google, Facebook, PayPal etc
Example:
Launch Apple Pay in US
Will they enter banking?
Peer to Peer (P2P) Lending
• UK one of the fastest adopters with more than 40 platforms
• Provide loans and early-stage growth & working capital to over 5,000 start-ups and SMEs (2011-2013)
• Disruptive Model => Dis-intermediation of Banking
Investors
Banks
Businesses or
Consumers
P2P Platforms
But business model is changing ….
• In the US, 80% of loans originated through two biggest P2P lenders (Prosper and Lending Club) are bought by institutional investors rather than the individual investor who once dominated
• While dis-intermediation was original goal, biggest players are teaming up with Wall Street
Investors
Banks
Businesses or
Consumers
P2P Platforms
Securitize loans
Innovative Partnerships are Key
Example: Santander & Funding Circle
Contacts
Susanne Chishti, CEO
Email: [email protected]
uk.linkedin.com/in/susannechishti/
@FINTECHCircle
www.fintechcircle.com
