Fintech is more than disruptions of banks, it is also about the complete change in how CFOs will add value.

1. 1
How can technology help the CFO?
Keynote Duco Sickinghe
June 2017

2. 2
AGENDA
A
B Perspective on FinTech landscape & relevance for CFO
Fortino Capital at a glance

3. 3
Fortino Capital focuses on technology and digital
Software-
as-a-
service
Applied
Technologies
Digital
Transformation
• Standardized software
• Lower cost of ownership
• Centralized, secure cloud hosting
• Often matter of survival
• Business & operational transformation
• Network wins effect (e.g. e-commerce)
• = Horizontal innovation (Peter Thiel)
• IoT, robotics, data analytics, AI and blockchain (AI)
• Rather software and applications than hardware

4. 4
AGENDA
A
B Perspective on FinTech landscape & relevance for CFO
Fortino Capital at a glance

5. 5
Fintech is not so new as one might think
The (19)80’s 1990 - 2000 2010 - now
Source: “Fintech: Digital Innovation in the Financial Industry (07/01/2016)”

6. 6
But term “FinTech” has only become hot in last few years
Source: Google Trends

7. 7
Biggest FinTech activity mainly concentrated on banking services
40% of all FinTech start-ups were active in payments space in 2015
Source: Mckinsey, 2015

8. 8
With ambition to “unbundle the bank”
Source: “Fintech: Digital Innovation in the Financial Industry (07/01/2016)”, Jean-Michel Pailhon

9. 9
Many FinTech verticals are relevant for CFOs, i.e. CFO-Tech
Source: Finovateeurope-2016

10. 10
Also in Belgium, full spectrum of FinTech players emerged…
Today’s Belgian Fintech landscape
IOTAccounting & Expense
Management
Banking Business (financial) tools
Crowdfunding/
Alternative Investments
DataAnalytics&
ComparisonPortals
Insurance
Payments
Wealth Management
Infrastructure
Security & Identity
Management
Source: B-HIVE

11. 11
…where many can be categorized as CFO-Tech
Today’s Belgian Fintech landscape
IOTAccounting & Expense
Management
Banking Business (financial) tools
Crowdfunding/
Alternative Investments
DataAnalytics&
ComparisonPortals
Insurance
Payments
Wealth Management
Infrastructure
Security & Identity
Management
Source: B-HIVE
Relevant for CFOs

12. 12
Role of CFO is changing, to be successful in future, need to adopt innovation & technology
More strategic responsibilities, while maintaining standard role requirements
Vastly increasing reporting needs, both financial and non-financial
Push for real time data availability, authenticity and integrity of data
More stringent risk and compliance requirements (of people and machines)
Innovative / network organizations lead to many more reporting entities
Many more counterparties (customers, suppliers, employees, consultants)
Need to reduce costs

13. 13
To be successful in future, CFO needs to adopt innovation & technology
Work more efficiently and free up resources by (robotic) process automation1

14. 14
Process automation: digitalization impacts all dimensions of doing business, also finance
Source: Getapp.com; PwC Private Equity & Digital Transformation – A European survey among 100 mid-to-large cap PE houses on their views
on the potential of digitization, November 2016
LogisticsOperations Marketing Sales Servicing
Bamboo HR
Halogen Talentspace
iCIMSApplicant Tracking
Personalized HR software
for SMBs
Performance and talent
management
Applicant tracking and
recruiting software
Datadog
ManageEngineDesktop
Pulseway
Monitoring service for IT
Desktop, mobile device &
patch management
IT management system
eMaint CMMS
Liquidplanner
Statii
Computerized
maintenance management
software
Dynamic project
management software
Cloud bases enterprise
resource planning software
Shippingeasy
Shipstation
Fleet manager
Shipping software
Shipping platform
GPS tracking and fleet
management
SAP Digital CRM
ZohoCRM
Insightly
CRM management
Multichannel CRM for all
businesses
Online CRM & project
management for SMBs
ZohoDesk
ManageEngine
SupportCenter
TeamSupport.com
Context-aware helpdesk
software
Web bases customer
support
B2B customer support
software
1
Supply
chain & procurement
Accounting
Treasury
Payments
Lending
Reporting & business
intelligence
Travel & expense
IT
Procurement
Finance
HR
Seismic
Showpad
Datahug
Enterprise-grade sales
enablement
Sales enablement platform
Sales preedictive analytics
tool for sales reps
Shortlist
Procurify
Netsuite
Freelancer + vendor
management system
Purchasing application
Inventory management
Capix
Canopus Treasury
M2M
Cloud-based treasury
software
Automation software for
treasuries
Portfolio valuation
software for treasuries
XpenditureExpenses
Expensify
Concur
Business expense solution
Cloud-based receipt &
expense management
Business travel & expense
management software
Paypal
Intuit Gopayment
Ingenico ePayments
Payment management
Payment management and
mobile payment gateway
Online payment solutions
LendingCLub
My Microinvest
Invoicesharing
P2P lending platform
Crowdfunding platform
Document digitalization
& WC pre-financing
Tableau
Netsuite
Domo
Business intelligence &
analytics software
Cloud business
management software
Business intelligence
software
Zoho Books
Online accounting software
VersAccounts
Cloud accounting & ERP for
SMEs
FreshBooks
Cloud accounting software
for SMEs

15. 15
Process automation: example an end-to-end automated billing platform, replacing
previously tedious process
Traditional
process
Simplified
process with
Key Benefits
✓
✓
✓
✓
1
Replace excel & manual data entry into accounting system
Go paperless
Improved compliance / audit trail
Improved reporting functionality
AvidSuite simplifies ingestion, automates approval, and integrates with 100+ ERP/Accounting systems,
allowing clients to complete a 30-45 day process in only 2-3 days
Source: Bain Capital Ventures

16. 16
To be successful in future, CFO needs to adopt innovation & technology
Work more efficiently and free up resources by (robotic) process automation
Add more strategic value through enhanced use of data & artificial intelligence2
1

17. 17
2Advanced data analytics allow CFOs to add more strategic value
More data…
Better analytics…
Internal + External
Structures + Unstructured
Historical + Real-Time
Social Media
Text / Video
Market data
3rd Party Data
Statistics
Machine Learning
Predictive Models
Prescriptive
…enables… …more value creation
Business Insights
Ability to Challenge
Forward Looking
Agility
Optimize the business
Grow the business
• Decision support (reporting & monitoring)
• Forecasting
• Risk & Compliance management
• Resource allocation
• Pricing
• Cost management
• Capital allocation
• Investment decision
Artificial Intelligence
IoT
Source: MIT CFO Summit, State Street, McKinsey

18. 18
Internet of Things will further boost proliferation of data2
Source: The Connectivist based on Cisco data, i-scoop.eu

19. 19
Non-Financial KPI tracking is on the rise
Nearly twice as many CFOs expect to track 30% or more non-financial KPIs by 2018
2
Source: “CFO indicator report Q3 2016”, Adaptive Insights
2018
41%2016
24%

20. 20
To be successful in future, CFO needs to adopt innovation & technology
Work more efficiently and free up resources by (robotic) process automation
Move to cloud, which will be cheaper more secure IT environment (paradox)
Add more strategic value through enhanced use of data & artificial intelligence
2
1
3

21. 21
3
of finance software is
customized&
inflexible
75%
of CFOs have allocated
budget for cloud-related
IT spend
73%
Oracle’s cloud ERP suite
bookingsdoubled each
quarter in ‘15
x2
Projected market size of
cloud-based ERP by 2020;
growing at 10% CAGR
$18B
1. “The TCO of Cloud Computing in the SMB and Mid-Market Enterprises”, Hurwitz & Associates
Source: Accenture, Piper Jaffray, Allied Market Research, Forbes, CFO.com, Gartner, PWC
Cloud: You will all move to the cloud - cheaper and more secure (paradox)
lower total cost of
ownershipfor SaaS ERP
packages1
Up to 50%

22. 22
Cybersecurity has landed on CFO’s desk – are you ready to handle it?3
Source: Glasbergen.com

23. 23
To be successful in future, need to adopt innovation & technology
Work more efficiently and free up resources by (robotic) process automation
Move to cloud, which will be cheaper more secure IT environment (paradox)
Embrace blockchain to deal with changing world of more complex relationships
Add more strategic value through enhanced use of data & artificial intelligence
2
1
4
3

24. 24
Embrace blockchain to deal with changing world of more complex relationships
Blockchain technologies have multiple use cases moving beyond payments and even banking
4
Source: Peter Hinssen, IBM
World is getting more complex and
interconnected Blockchain further enables and reinforces network logic
• Whenever the outside world transforms itself
into a network, then organizations must
become a network
• Agility is the only true competitive edge
Transactions are complex
• Each party has own, separate ledger
• Reliance on intermediaries for
validation
• Paper-laden process
As-is To-be
Blockchain makes it better
• Single shared ledger
• All parties must give consensus before
transaction is launched
• Eliminates & reduces paper processes

25. 25
Example: Blockchain in Trade Finance, how smart contracting will streamline processes
Source: IBM
• Manual, paper-based process
• People to carry documents to authorities for stamps
• Air Courier expense and delays
• Digital Documents
• Trusted Data Exchanges
• Trusted Workflows
• Instant Secure Access
TomorrowToday
4

26. 26
To be successful in future, CFO needs to adopt innovation & technology
Work more efficiently and free up resources by (robotic) process automation
Move to cloud, which will be cheaper more secure IT environment (paradox)
Embrace blockchain to deal with changing world of more complex relationships
Add more strategic value through enhanced use of data & artificial intelligence
2
1
4
3
Shift to lighter finance department with more analytical & forward looking skill set5

27. 27
Finance department will become a smaller team of highly qualified professionals
✓ Reconciliation work
✓ Accounting
✓ Controlling cash flows
✓ Reporting
✓ Analysing data
✓ Generating business insights
✓ Formulating actionable advice
From… To…
Need for finance professionals with strong soft skills and a broad knowledge base
5
Source: “Artificial Intelligence opens the door to the creative CFO”, KPMG

28. 28
Shift skill set mix in team will require ability to interpret large sets of data and to translate
insights into strategic advice
5
Source: ‘CFO EvolutionTM’: Elevating the strategic leadership of the CFO organization, Armanino (consulting firm)

29. 29
Final thought: CFO will have bigger scope, but supported by plenty of tools

30. 30
Thank you