Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course final report

MiT Fintech: Future Commerce
Capstone Project Group 168
“Fintech Strategic Roadmap for the UK’s Largest Banks”
MODULE 10
7 March 2017
Fintech Strategic
Roadmap

Capstone Project Team
Luis Castejon (PhD Telecom Eng. GMP)
Professor & Consultant, Madrid, Spain.
● Telecom Engineering School, Polytechnic University of Madrid
● Research Director of “The Spanish Yearbook on Digital Transformation of Spanish Banks and Fintech” (IEB)
● Consultant to MNC technology companies in economic regulation, claims and Global ICT procurement processes
● Areas: business model innovation, strategy, technology impact, regulation and investment analysis
Jackie Noakes
Managing Director, Legal & General
● 20 years financial services career within Insurance, Banking and Card Payment Processing
● Senior level roles in Business Management, IT, Change, Procurement and Financial Reporting
● Member of the FAMR Expert Advisory Panel & recognised 100 Women To Watch Female FTSE 350 Board Report 2016
Colin Bennett (BEng, MBCS, CITP)
Head of Digital & Distribution IT, GAM, London
● 20 year financial services career within Wealth and Asset Management sector
● Digital Transformation lead and architect, global technology platforms, business and investment operations. Marketing and Sales.
● Programme manager for post M&A activities, critical projects and target operating models.
● Senior level roles held within FS covering group wide: Change, Governance, Operational Risk, IT, Investment Operations & Compliance
Andrea Monaco
Risk Manager, Citigroup, London. Member of Citi Ventures Monthly Blockchain Working Group
● More than 10 years risk management and internal auditing working for Investment Banking, Consultancy, Tech & Pharma
● Financial, operational and strategic risk assessment, assisting with regulatory and compliance related project work
● Optimisation of existing processes. reporting and control frameworks
● Subject-matter expertise in governance & process organisation, technical knowledge on capital risk, ICAAP, BASELIII/CRD IV regulation
Parrish Pryce-Williams (MSc Finance, MBA Strategy) - Capstone Project Lead
ICB Business Design, Coutts Private Bank, London
● PwC Banking & Capital Markets practice, clients Deutsche Bank, HSBC, Morgan Stanley, RBS & UBS
● Corporate strategy, finance, banking regulation, e-Commerce & post-merger integration
● Co-founder, Travel tech company (PlanetDatcha.com), UK
2
Fintech Strategic
Roadmap

Contents
3
Executive Summary
● Context
● Approach
● The Fintech Strategic Framework
● Key Findings
○ Macro Environment
○ Regulatory Environment
○ Competitive Landscape
● Conclusions
Fintech Use Case: Digitisation of Assets
● The Digitisation of Assets and Buying Personas
● Fintech Use Case Analysis
○ Structure
○ Current State Analysis: Innovation, Blockchain & Business Model
○ Key Drivers for Demand
○ Dependent & Independent Variables
○ Management of the Digitisation of Assets Ecosystem
○ Survey Results: Digitisation of Assets
Recommendations: Fintech Strategic Roadmap for the UK’s Largest Banks
● Fintech Strategic Roadmap to 2050
● Key Success Factors to Advance the Strategic Position of the UK’s Largest Banks
● Successfully Navigating UK Regulation
● Next Steps
Appendices
● Project References
● Acronyms
Fintech Strategic
Roadmap

Executive Summary
4
Fintech Strategic
Roadmap
Use CaseExecutive Summary Recommendations

Context
The purpose of this document is to provide an overview of our Fintech Strategic Roadmap for the UK’s Largest Banks.
According to the Bank of England (BoE), the UK banking industry asset growth is forecast to grow from £5 trillion to £60 trillion by 2050 [32].
The problem is that innovation is at the back of queue because the UK’s largest banking incumbents are fire-fighting a raft of issues from UK ring-fencing
regulation to managing costs of complex global structures. This Strategic Roadmap considers the following influencing factors:
5
Strong capital planning & financial planning
Disruptive ideas that unlock value Innovate fast and fail fast
Customer focused business models Utilise Fintech technologies
1 2
3 4 5
The Strategic Roadmap provides a solution for senior decision makers to understand the opportunities and threats posed by Fintech. Our analysis, has
identified 5 key success factors to Advance the Bank’s Strategic Position:
Customer expectations have changed with the
advent of new technology.
Rapid advancement of technology enables
Fintech firms to re-invent solutions.
Disintermediation by newcomers & PSD2, banks
competing against banks & any FS organisation.
Banking regulations create an unlevel playing
field for incumbent banks.
Market conditions, revenue models and customer
relationships are challenging.
Increased access to VC funding is facilitating big
investments in Fintech start-ups.
This presentation provides an overview of the framework to develop a Fintech strategic roadmap:
● Strategic Framework - Tools to develop a Fintech Strategy for a large Financial Services organisation.
● Market analysis - Summary of the analysis and conclusions relating to trends, customers, competitors and regulations.
● Use Case Study of the ‘Digitisation of Assets’ - Example how Fintech could protect and grow the mortgage lending business using
Blockchain.
● Survey - The key finding included: ‘Education and understanding of the concepts turned out to be the biggest dependency for
adoption’.
The key recommendation is that every banking incumbent requires a robust Fintech Strategic Roadmap.

Approach
Framework - Assessed impact of Fintech on incumbent Financial Services type organisations:
● Banks registered in the UK which are regulated by the FCA and overseen by The Bank of England
● Balance sheet size of £25bn or more and need to comply with UK ring-fencing regulation by 2019
● Home market refers to the UK market
6
Analysis - Our analysis has given due consideration to:
● Fintech start-up velox.RE and how the company is using Blockchain to ’Digitise Assets’ to unlock value
● Local & international regulatory landscape and ways to successfully navigate areas that apply to a Fintech
Start-Up or UK banking incumbent
● Idea creation, innovation and traditional vs disruptive business models
Strategy - Our project is focused on:
● The UK’s 5 largest banks: HSBC, Barclays, Santander, Lloyds Banking Group and The Royal Bank of Scotland [58]
● Threats and opportunities that Fintech poses to these organisations in the UK market
● Analysis and opinion that could contribute towards strategy development and the allocation of resources
SCOPE
Framework
Strategy
Analysis
OBJECTIVES
Strategic Framework - We have developed a framework to develop a Fintech Strategic Roadmap
Analysis - Conducted detailed analysis of the UK’s 5 largest banks in relation to:
● Identify the threats and opportunities that Fintech poses to these organisations in the UK market
● Considered the strengths and weaknesses of the incumbent organisations
● Documented key area of Fintech innovation that could strategically support the UK’s largest banks
● Analysed Fintech start-up, velox.RE that offer specific Use Cases for Blockchain innovation, Distributed Ledger Technology
● Compared the incumbent current/traditional vs disruptive Fintech business models
Recommendation - Fintech Strategic Roadmap for the UK’s Largest Banks
● Evidence that Fintech innovation is central to serving customer needs and delivering profitability
● Recommendations relating to new business models and the potential allocation of resources
● Observations and insights from our survey on UK Banking and the ‘Digitisation of Assets’
2
1
3
1
1
2
3
2
3
Fintech Strategic
Roadmap

Strategy
7
Fintech Strategic
Roadmap
The Fintech Strategic Framework
Fintech Strategic Roadmap
Strategy = Analysis + Framework
NEXT STEPS
The 10 Steps Methodology
Incumbents v DisruptorsUse Case Structure SurveyInnovation
FrameworkAnalysis

Macro Environment - UK Banking
8
Fintech Strategic
Roadmap
Society
Millennials require
something new and
online to solve
society's challenges.
The future challenges
around an aging
demographic and
affordability for all is
driving behavioural
changes.
They want a banking
experience to meet
their life goals, not an
admin burden -
Funanical Services.
Technology
Industrial
Revolution 4.0 -
Major technological
advancements in
hardware, software
and telecomms are
facilitating great
change in the way
people interact with
companies and
services.
Legacy technology
is increasingly
reaching end of life
wrt use and skills.
Economy
BoE forecast asset
growth for UK banks
from £5 trillion to £60
trillion by 2050 [32]
The pool of
prospective savers
has become larger,
older and richer.
Increasing
competition from
Fintech’s and
BigTechs
Environmental
Banking cannot afford
reputational risks
around environmental
issues and must
positively engage in
eco and social matters.
Political
Geopolitical
uncertainty is rising.
Markets, Resources,
legal entities,
locations, products
and services are at
risk of change and
disruption.
The flexibility of
Fintech and Digital
services seem
increasingly appealing
to remain agile in this
uncertain political
environment.
Legal
An increasing
regulatory
compliance burden
and associated fines
on banks.
PSD2 will open up
banking data and
transactions, acutely
drive changes to
products - actively
encouraging
competition.
Ethical
Post 2008 crash
banking trust
hangover.
Globalisation in
question
Core values being
reassessed
Community bonds
strengthening in
light of external
turmoil.
CUSTOMERS:
▸The younger generations increasingly feel they are not catered for, the older
generations need ways to deal with their retirement, care and legacy. Small business’
need increasingly simple, affordable and accessible access to finance to remain agile in
today’s trading environment.
▸Increased demand for new financial products and services to release equity and make
financial life more fluid for individuals, families, communities and business.
▸BigTech’s (Amazon, Google etc) increasingly have all the users and the ‘non banking
credentials’ required for future holistic financial service success.
UK BANKS:
▸With good projected UK growth forecast from the BoE, UK Banks are operating in a
challenging macro environment.
▸Geopolitically and within the UK, markets and regulations are reforming forcing banks to
rethink their legal structure, product distribution and resourcing strategies.
▸Fintech’s with their agility and new technology and millennial appeal are increasingly
providing viable alternatives to the UK top 5 banks who are suffering from the burdens
associated with their legacy, size and scale.

Asset-based lending is a business loan secured by collateral (assets). The loan,
or line of credit, is secured by inventory, accounts receivable and/or other
balance-sheet assets. Loan-by-loan information are required for asset-backed
securities (ABSs) to be accepted as collateral in Eurosystem credit operation.
The eligibility criteria is stated in Decisions ECB/2014/45. Specific requirement
are defined by the EBA on Assigning Risk Weights to Specialised Lending
Exposures, EBA/RTS/2016/02.
Launch of the FCA’s Project Innovate, to seek views about
specific rules and policies that are restricting innovation or
should be introduced to facilitate innovation in digital and
mobile solutions; support firms by ensuring the regulatory
regime promotes the development of innovative products and
services which can improve the lives of consumers. The FCA
intends to work with businesses that have innovative ideas
and to use its expertise to assess if these are compatible with
existing regulation [42].
The asset-backed securities purchase programme (ABSPP)
helps banks to diversify funding sources and stimulates the
issuance of new securities, help banks to fulfil their main role:
providing credit to the real economy [43].
Regulatory Environment - UK Banking
9
Mortgage & Lending
Two parts to mortgage regulation:
- Conduct regulation, administered via the Financial Conduct Authority (FCA)
Mortgage Conduct of Business (MCOB) rules.
- Prudential regulation, administered via the Prudential Regulation Authority
(PRA), determines the level of capital that lenders need to hold to offset their
lending risks and mitigate the risk of instability.
The most recent major regulatory development is the European Mortgage Credit
Directive and Consumer buy-to-let, which affect the rules in the UK.
Increasingly provide
mortgages through the
use of different
technological solutions,
less certain is the
effect of advancing
technology and
regulation to seeking
to develop products
that address
socio-economic
change in the market.
Trend & main effect of the regulation
Asset backed lending
Funding
The funding of lenders consists of two important elements: liquidity to provide loans (mortgages, personal loans etc.) and capital to absorb losses.
The framework for UK capital regulation
[40] is contained within two EU legislative
instruments: the Capital Requirements
Directive (CRD) and the Capital
Requirements Regulation (CRR).
Collectively these are known as CRD IV.
Pillar one details the minimum level
of capital a lender needs to hold.
This focuses on the credit risk of
different assets and a risk weight for
assets.
Pillar two focuses on the
supervisory review of the level of
capital and factors in other risks
lenders have for which capital needs
to be held e.g. systemic risk, but
also reputational, pensions etc.
Pillar three concerns disclosure and
transparency where market
discipline modifies lenders
behaviour and the level of capital
held.
UK likely to
remain largely
a national
market,
relatively little
cross-border
business and
a highly
regulated one.
In the UK, 99.9% of UK private sector
businesses are SMEs that employ 0-249
people, and these enterprises account for
almost half of private sector turnover [20].
However, the majority of SMEs whose
bank loan applications are rejected are
either unable to access other sources of
bank finance or simply do not try and
apply to these alternatives.
The British Business Bank reported that
71% of small firms approach only one
provider of finance [41].
Fintech Strategic
Roadmap

Regulatory Environment - Global
10
Scenario
Global regulations have come into effect to manage liquidity risk and improve
collateral management. Regulations such as European Market Infrastructure
(EMIR) and MiFIDII in Europe, Dodd-Frank in the United States and others have
increased required margin exchanges to ensure that there is sufficient collateral.
As indicated in the 2017 Global Regulatory Outlook published by EY [44] during
2017 banks will have to meet four imperatives: managing tighter capital and
liquidity requirements, making resolvability part of business as usual,
keeping conduct risk under control and embedding good governance.
These imperatives have not changed.
What has changed are the demands of supervisors, the economic and
political environment and the application of technology to finance (FinTech).
These have all lent a new urgency to investor demands that banks have a
sustainable business model, one that will consistently generate a return on equity
in excess of cost of capital.
Technology is creating
new possibilities for
banks to reduce costs,
manage risk, improve
compliance, increase
customer satisfaction and
drive revenues.
>> But technology is also making it easier for criminals and
terrorists to attack banks, as well as for new entrants to
compete with banks <<
|| Global regulation lacks clarity, legislations i.e. to manage risk of New
Technologies ||
Examples include Fintech
The global reform program
enacted in response to the
financial crisis aims to
make banks less likely to
fail and resolvable (without
cost to the taxpayer or
significant disruption to the
economy at large) if they
do fail. Digitisation enables
banks to automate many
internal processes and
interactions with clients
and counterparties.
Better customer
experience, enhance
disclosure, check that
transactions comply with
relevant rules respective
risk appetites.
Going forward, investment
in better data, analytics and
modeling should generate
significant cost savings for
banks.
Governance, appropriate
controls and oversight,
accelerating the adoption of
new technologies more
broadly, enables banks to
improve both risk
management and
regulatory compliance, as
well as to enhance
competitiveness.
With such, banks will be
better placed to meet the
expectations of supervisors
and investors.
Central to this program are
higher capital and liquidity
requirements. These
challenge the predominant
“borrow-short, lend-long”
model underlying
commercial banking, as
well as the
“acquire-to-arbitrage”
model of investment
banking.
Regulators have incorporated the shift to provisioning on the
basis of expected loss into the capital regime, and
supervisors have used stress tests to give a forward look to
overall requirements.
The 4 Global Regulatory Imperatives What's New?
Grey Area
NewTechOffersImproved
RegulatoryOversight
Mandated Regulation
MandatedRegulation
Key Observations
Fintech Strategic
Roadmap

Case study: Ant Financial [51]
A subsidiary of Alibaba.
FS to individuals and SMEs
Payment 451m annual active users
Wealth management 152m clients
SME loans 3m users
Insurance 380m users
Credit reference 130m users.
Alipay: mobile payments platform 450m
users [55]
The BigTech activities in FS
Current competitors: Amazon and
Paypal in consumer lending and payments
Collaboration but potential entry:
Google, Facebook and Apple
The Banks are innovating in their business model, mainly in
the front-office but heavy inertia remains in the back-office
● Provision of a full range of FS
● Multichannel approach: online and mobile services, call center,
branches agents, and client managers
● A large staff base
● Complex legacy IT systems
● Complex operational processes oriented to risk and capital
management and regulatory compliance
● Industrialised approach to mortgage grant
Very commercial market strategies but needing new
business model and more Cx orientation
● Increase customer loyalty
● Increase digital channels use
● Charge attributable direct fees for each product usage
● Improve customer experience
● Monetising from alternative sources
Competitive Landscape - UK Banking
P2P online lending [52]
● The main UK fintech market
● 3.34% market share P2P SME lending
● Loans amounts £3.2bn (▵83%)
● 1.09m investors; 254k fundraisers
● Secured and unsecured SME to RE,
consumer, invoice trading and equity
crowdfunding
Challenger banks provide a limited
range of FS but focusing in top Cx
Atom Bank case study [49]
● App-only bank
● A better value, more transparent and
innovative banking experience
● Constantly evolving and extending
offerings
● Started with offering savings
accounts
● Next offering: current accounts and
mortgages
● App unique features: personal look &
feel, monthly updates
CHALLENGERS BANKS & BIGTECH COMPETITIVE POSITION
● Clarity that helps you manage your money: portfolio
management tools
● Good design matters: Ux, Cx, alerts
● Unsecured loans pre-granting based on data analytics
● Helping small businesses with data analytics
● Artificial intelligence for genuine help and support.
● The omni-channel customer experience. [50]
BANKS ARE DEVELOPING INNOVATIVE PROJECTS
Fintech Strategic
Roadmap
COMPETITIVE POSITION OF THE UK INCUMBENT BANKS
● Santander & Kabbage / Ripple
● Lloyd’s & Halifax video attention
● RBS’s Luvo AI trial
● HSBC biometric authentication
● Barclay’s Eagle Labs & automatic
loans
Banking & FinTech are collaborating
11

Competitive Landscape - UK Banking
The UK banking industry is an attractive opportunity & requires the banks to develop appropriate strategies to meet future
demands. The industry is also attractive for the Fintech start-ups, challenger banks & BigTechs. Doing nothing is not an option.
STRENGTHS
￭Trust factor based on
regulation
￭Large customer base
￭Physical branches
￭Capital base
￭Funding sources
￭Market share
OPPORTUNITIES
￭Growing demand of FS within the population
￭Increase customer loyalty
￭Innovation and development of digital FS
￭Cooperation with Fintech, other banks, and BigTechs, in new business model
based on PSD2, Open Banking and multi-sided platforms
￭Merger and acquisition opportunities as the result of restructuring in the UK
banking sector
STRENGTHS
￭Innovative digital services
￭Intensive use of AI, big data, DLT
￭Lower cost and complexity (no legacy)
￭Innovative culture, tech skills & Ux talent
￭BigTechs: profitable, trust, disruptive,
platforms, Ux & Cx, engagement
WEAKNESSES
￭Monetising model
￭Lack of innovation
￭IT legacy
￭Complexity
￭Regulatory burden
THREATS
￭New banking business models, new challengers, new customer expectations
￭New open financial ecosystem with PSD2 & Open Banking
￭Negative perception about banks, including the Millennials
￭Loss of FS passporting rights to EU and London as FS hub
￭Unlevel playing field due to the asymmetrical regulation
WEAKNESSES
￭Trust to be developed
￭Capital weakness and allocation
￭No human interaction for financial
advice
￭Proof of generating profits
￭Regulatory leveling
DIRECT
Incumbent and Challenger banks,
BigTech, Fintech startups
INDIRECT
Lending specialists; RE
firms
POTENTIAL
BigTech
STRONG, AGILE AND INNOVATIVE COMPETITORS
INCUMBENT BANKS CHALLENGERS AND BIGTECHS
Regulation; customer base; trust; branches; full range
FS technology platforms; capital requirements, banking
knowledge
DIMINISHING BARRIERS TO ENTRY
Fintech Strategic
Roadmap
12

Conclusions
13
Fintech Strategic
Roadmap
Regulatory considerations are critical because Financial Services is the most regulated sector in
the world and applies to a Fintech Start-Up or UK banking incumbent. In the ‘Digitisation of
Assets’ example, the funding of loans consists of two key elements (i) liquidity to provide loans
to customers, and (ii) capital to absorb losses which are regulated by CRD IV in the UK & EU.
‘Real estate (RE) loans circa 56% of UK banks’ profits [1]
UK big 5 banks RE loans decreased 5% & challenger banks grew
RE loans 30% YoY [2]’
‘99.9% of UK businesses are SMEs, majority of rejected SME
loan applications, unable to access other sources of finance.’
‘In banking, strength of the balance sheet is critical to exploiting
future opportunities.’
The next section provides a summary of the Fintech Use Case analysis and explores
Innovation, Blockchain Technology and disruptive Business Models in the context
of the ‘Digitisation of Assets’.
Our analysis concluded that there are 5 key success factors to Advance the
Bank’s Strategic Position of the UK’s Largest Banks and these are
central to the development of the Fintech Strategic Roadmap.
There are drivers that will change the way banking looks by 2050, especially Millennials and how
this generation expects to access banking products and services in the future. Short term
competitive threats come from challenger banks and medium term threats from the 4 A’s*.
(*The 4 A’s = Amazon, Alibaba, Alphabet & Apple). [4]
Disruptive ideas unlock value1 Innovate fast and fail fast2
Customer focused business models Utilise Fintech technologies4
Strong capital planning & financial planning5
3
‘The Top 5 UK Banks require a Fintech Strategic Roadmap to
protect strategic position - doing nothing is not an option.’
THE MARKET LANDSCAPE IS CHANGING
The 4 A’s already offer digital wallets that compete with bank accounts and have already made
a big impact on the $426tn cashless global payments market [3] with ‘frictionless’ payment
apps. From here it is very short step to leverage their technology expertise, access to capital
and customers to launch credit and lending products.
COMPETITORS ARE CHANGING
CAPITAL IS KING
SUCCESS IS CUSTOMER FOCUSED INNOVATION
FAILING TO PLAN = PLANNING TO FAIL

Fintech Use Case:
The Digitisation of Assets
14
Fintech Strategic
Roadmap

15
LoanCapital
Asset Smart Contract**
Lender
Seller Buyer
DLT *
‘Digitisation’
Use Case: the Digitisation of Assets
The Use Case is a practical example of how banking incumbents could apply Fintech themes and trends to re-imagine products and services for UK
customers. We consider how velox.RE is using Blockchain to ’Digitise Assets’ to unlock value and radically change the process of transforming
assets into liquidity using DLT and smart contracts**. Velox’s goal is to overhaul the traditional model of financing real estate and/or releasing equity
from assets to access funding quickly and safely. The downstream benefits are vast, including connecting to land registries and providing the
regulators with a transparent view of a bank’s asset-backed loan book.
This is an area with incredible potential for banking and finance, especially in the area of mortgage lending which represents more than 56% of the
UK bank’s profits [1].
An online survey was conducted to test external views on the ‘Digitisation of Assets’ and the key finding included: ‘Education and understanding of
the concepts turned out to be the biggest dependency for adoption’. Full results of the survey is provided on slide 24.
Fintech Strategic
Roadmap
*DLT - Distributed Ledger Technology | ** A smart contract is a programmable contract capable of automatically enforcing itself upon the occurrence of pre-defined conditions.

Use Case: the Digitisation of Assets
16
Fintech Strategic
Roadmap
The next generation of home buyers need something different:
● 32% believe their bank offers products to suit their needs.
● Online service is more important than customer service
[Uswitch Millennials survey 2015] [34]
● 59% haven’t set foot in a branch in the last 3 months
● 42% believe that BigTech companies (24%) or supermarkets
(18%) would do a better job of offering relevant financial
products for their generation.
buy house
“We are facing an acute housing crisis...The country needs to build 300,000 homes a year for the foreseeable future. The private sector alone
cannot deliver that”Lord Hollick, Chairman of the Economic Affairs Committee, 2016 [38]
Increased demand for new financial products and services to
release equity and make financial life more fluid for individuals,
families, communities and business is underway.
The younger generations are not catered for, the older generations
need ways to deal with their retirement, care and legacy. Small
business’ need increasingly simple, affordable and accessible
access to finance to remain agile in today’s trading environment.
Why choose an inconvenient, slow, expensive and
frustrating chore when you can have a convenient,
fast, low cost and joined up mobile experience?
Digitised Assets could form the future basis for:
● the ‘new secured lending’
● Equity release
● Financial inclusion
● Transfer of value between families,
communities
INNOVATE OR RISK 56% PROFIT
UK Real-estate based loans
representing more than 56% of
UK banks’ profits [1]
Lending assets of UK big 5 banks
decreased 5% YoY, Challenger banks
lending asset grow 30% YoY [2]
FU
T
U
R
E
CH
O
ICE
Retail Loans and Mortgages: Current £300bn lending assets
across big 5 UK banks [35]
UK Real-estate based loans representing more than 56% of
banks’ profits [1]
A loan or mortgage is a key product that captures a client for a
long time and provides cost effective cross selling opportunity.
Commercial Real Estate: There has been a shift towards a
more diverse range of lenders, as UK banks and building
societies’ share of outstanding loans falls to 45% [ 36]

17
Fintech Strategic
Roadmap
Digitised Assets - Buying Personas
Emily: 34, Single female.
Professional, university
educated, successful media
career, loyal, social, paid off
student loans, now cash rich,
time poor, lives in long term
rented flat in London. Loves life
and lives it to the full! Wants
everything online & convenient.
Lives online: Owns an iphone,
Macbook at home and an ipad. Banks
online, amazon prime member,
subscribes to beauty boxes, has
Graze delivered to office for healthy
snacks, keen instagram, facebook
and internet user. All files and admin
stored securely in the cloud.
Occasional use of online dating.
Who am I? Motivations, Goals, Concerns Technology
Motivations: Fulfilment, work life
balance, good friends network online.
Strong family bonds
Goals: Settle down, buy a house, get
married, try for children when the time
is right. Start saving
Concerns: Trust. Buying Products
and services from companies that do
good, settling down too soon
Persona 3 reasons for UK banks to
engage with me
1 - Good credit rating, High regular
salary that will turn to savings soon
2 - Keen appetite for future life goal
Financial Service products (eg
mortgage)
3 - Large social network to advocate
good service and product set
David: 67, Married twice,
retired ex professional, 2 sets of
children to support, reasonable
pension but could do with adhoc
income to top up retirement
income. Enjoys short holidays,
golf with long term mates and
spending time with family.
Fully set up with home office and all
the kit. iPhone, iPad, iMac and a
menagerie of Apple products. Make
him feel connected and social.
Occasional facebook user. Monitors
bank balances and small investments
online. Reads news and shops for
groceries online. Ultrafast broadband.
Motivations: Enjoy retirement,
ensure dispersed family is OK.
Goals: Get everything arranged to
have low effort future as get older.
Release equity in large family house
and assets to fund old age
Concerns: Medical costs rising as
health ails.Wills, inheritance.
1 - Good prospect for retirement
products and insurances
2 - Keen to release equity, move to a
smaller house and fund family futures
3 - High value client but low service
demands, apart from an efficient and
easy to use service
Chris: 25, Single, left school,
straight to work in trades as an
apprentice plumber. Lives with
family, is thinking about setting
up as an independent plumber
to earn more and move out with
long term girlfriend. Hates admin
and long drawn out processes.
Had a phone since the age of 14 to
keep in communication with family.
Runs his life from the phone,
everything is saved to the cloud for
work and leisure, heavy user of
facebook and snapchat. Thinking of
building a wordpress website to
support a new business venture with
a friend.
Motivations: Have fun, be successful
whilsts enjoying life.
Goals: Set up as an independent
tradesman, build company. Buy a first
flat.
Concerns: Service Worth / value.
Won’t be able to leave mum’s house
soon enough. Eco credentials of trade
supply chain important
1 - New corporate business finance
and account candidate
2 - Plumbing is lucrative and a good
steady income should come through
the accounts
3 -Personal accounts and other
services would make sense to be in
one place and connected online to
ease Chris’s admin
Who are the example customers for digitised assets in the UK? The following 3 personas demonstrate the growing market for new, convenient & online products.

Use Case - Structure
This analysis considered how a Fintech start-up, velox.RE, is using Blockchain to ’Digitise Assets’ to unlock value
and radically change the process of transforming assets into liquidity using DLT and smart contracts. Velox.RE’s
goal is to overhaul the traditional model of financing real estate and/or releasing equity from assets to access
funding quickly and safely. The Use Case analysis considers the following in relation to Fintech ‘Disruptors’:
● Innovation
● Blockchain Technology
● Business Model
18
INNOVATION
BUSINESS
MODEL
BLOCKCHAIN
Use Case
Analyse the strategic approaches to innovation utilised by Disruptor(s), in particular:
● If the approach is formalised, e.g. Lean Start-Up
● Identify if the approach to innovation is top-down or team specific
● Document any relevant learnings for UK Banking incumbents
Consider how the disruptor is applying Blockchain or DLT in the ‘digitisation of assets’ in order to make value transfer easy,
quick and cost effective. For example in key banking areas such as asset backed lending, e.g. mortgages & real estate loans,
to improve the process and meet customer requirements for a fast and efficient loan approval process (i.e. reducing the
friction in gaining agreements in principle for a mortgage or asset-backed loan).
Understand the business model that is being used by the Disruptor and relevant organisations in order to innovate and create
a Blockchain or DLT solution. The key considerations are:
● Identify whether the Fintech Disruptors’ business model for innovation challenges incumbent business model
● Consider the relationships Fintech Disruptors’ are utilising to deliver DLT for traditional/complex organisations
● Document the business model that incumbents could consider for corporate innovation, joint ventures and job
creation
A
B
C
Fintech Strategic
Roadmap

Disruptor: Velox.RE [ve·lox (n.
Latin.) /vi’laks/ adjective. Moving fast or
doing something in a short time] [23]
Velox.RE’s vision is to make real
estate liquid and peer-to-peer. [7]
Ragnar Lifthrasir (CEO) is also
Founder and Chairman of the
International Real Estate Association
(IBREA). IBREA has quickly grown to
1,500 member in 17 countries in 24
months. [6]
Chicago’s Cooks county is currently
testing the use of Bitcoin Blockchain
with Velox.RE and IBREA. [15]
Incumbent Banks
Barclays and RBS were founding
members of the R3 consortium. [8]
4 of the 5 incumbent banks had no
reference to Blockchain in their 2015
annual report which reflects this
remains a lower priority.
Santander is developing a public digital
cash system through Ethereum [22]
Barclays is trialling DLT for trade
finance; also working with DWP to
apply to benefits payments. [18]
RBS have developed a distributed
clearing and settlement mechanism
based on Ethereum. [21]
Many of the banks are also exploring
opportunities using AI, IoT,
biometrics and data science. [12][19]
Use Case - Current State Analysis
19
Assess - Current State
Key Observations -
Future State
INNOVATION
BUSINESS
MODEL
BLOCKCHAIN
Incumbent banks are selectively investing in fintech and/or participating in
consortia. Some have established accelerator programmes to explore
innovative ways to meet the needs of customers.
Velox.RE CEO is a pioneer in applying blockchain to real estate (RE). [5]
He has established a mature ecosystem (IBREA) comprised of professionals
in real estate development, investment, escrow, title, law, brokerage,
government, marketing, and technologists across all domain areas.[6]
Innovate by
collaborating and
crowdsourcing ideas
across all parties in
the ecosystem
Open source
platforms are key to
rapid innovation and
the ongoing adoption
of new technology
Business models
innovating through
technology-led value
propositions must
consider how to embed,
share and promote
use
Use Cases
1
2
3
The majority of incumbent banks have started to explore Blockchain
technology through proof of concept projects in areas such as trade finance
and payments.
Velox.RE focus is to make RE liquid and peer-to-peer using open source
Blockchain technology. Bitcoin and other blockchains can reduce costs,
stamp out fraud, speed up transactions, increase financial privacy,
internationalise markets and make RE a liquid asset. [7]
Most banks have established an initial innovation hub or are partnering
with fintech entrepreneurs to source ideas. The majority of banks have
started to strengthen technology leadership on their Board or have set up a
separate Advisory Board comprising CEOs, scientists, entrepreneurs
Velox.RE collaborates extensively with IBREA Slack community which seeks
to drive the adoption of Bitcoin and Blockchain. Their goal is to implement
technology, build the RE community and set industry standards.[24]
Fintech Strategic
Roadmap
IncumbentsDisruptorIncumbentsDisruptorIncumbentsDisruptor

DIGITISED ASSETS | BLOCKCHAIN | SMART CONTRACTS
Customers are demanding change in the way they finance housing, the demand will extend far beyond mortgages to
include the research, purchase, financing, insuring and ongoing upkeep of the home. Fintech challengers are delivering
what customers want and are winning market share. The Fintech challenge is real, it is critical to act now.
Key Drivers for Demand
20
The UK’s younger generations have been excluded from the housing market, constrained between spiraling home prices and stagnating incomes.
First-time buyers are unable to gain access to mortgage financing, stalling the future housing market growth. The digitisation of assets can provide
the liquidity and agility required to unlock UK banking’s future asset growth by providing future generations new ultra-connected ways to secure
lifetime credit lines and innovative new banking products.
The value of UK dwellings was
estimated at £5.5trillion at the
end of 2015 [33]. By 2030 the
av. cost of a home will rise by
84%.[60]
BoE forecast asset growth for
UK banks from £5 trillion to £60
trillion by 2050 [32]
UK Real-estate based loans
representing more than 56% of
UK banks’ profits. [1]
The Lending assets of UK big
5 banks decreased 5% YoY,
Whilst the Challenger banks
lending asset grew 30% YoY
[2]
42% of millennials believe
BigTech would do a better job.
Big 5 Bank profit is being
attacked by challenger banks
appealing to the digital
customer. Innovation is
winning the race.
68% of millennials believe
their bank does NOT offer
products to suit their needs.
Challenger banks are filling
this gap rapidly. The battle will
be around the entire home
ownership experience.
To unlock this future value /
equity, banks must provide a
next generation infrastructure
backbone to run and hold the
increasingly liquid market.
The agile and digitised asset
class is emerging fast.
The millennials are coming...
The next generation of digital
citizens / owners require asset
liquidity, flexibility and speedy
transactions.
59% haven’t set foot in a
branch in the last 3 months
[34].
-5%
YoY
+30%
£
£
Profit
56%
?
2015 Market
£5.5tr
2030
+84%
2015
£5 trillion
2050
£60tr
Market
Drivers
Market
forecast
Market
Influences
Fintech Strategic
Roadmap

DLT key variables that can be directly managed
21
Fintech Strategic
Roadmap
The economics of the DLT use case depends directly on certain key dependent variables which are under direct
management or control of the Top 5 banking incumbents. Early leadership is needed from the banks.
Dependent Relationships with the economics of the Use Case
DLT
Mortgage
Adoption
￭ DLT is an enabler for the digitisation of mortgages.
￭ Some risk related to the DLT maturity: in
development, implementation, and availability of skills and
knowledge
￭ Development of a complete and open mortgage
ecosystem: reliable, safe, secure and proven end-to-end
Bank Risk
Appetite
￭ Bank risk appetite will need to consider operational
risks relating to integrity of the system, it’s reputation and
the reputation of ecosystems partners
￭ The financial risk has to be managed in relation to the
process of marking assets to market, LTV ratio, provisions
in the event of delinquency or default, and profits
Regulatory
Compliance
￭ Regulatory compliance is costly
￭ New concerns related to privacy, cyber-risk and data
loss
￭ Regulatory compliance causes to banks to undertake a
high degree of industrialisation in the mortgage
process. This has impacted their market approach and
customer experience [57]
▸ Adoption of an open and complete DLT mortgage
ecosystem including all relevant stakeholders: technology and
infrastructure partners, training institutions, regulators and banks
▸ Pressure on developers to make scalable infrastructure: the
adoption curve for Bitcoin has surpassed expectations [56]
▸ DLT technology and system operations: highest levels of
service, integrity, reliability and security
▸ Operational and financial risk mitigation: smart contract
feature allows asset management, mark to market, and credit risk
monitoring all in real time. Thus, reputation can be improved
▸ Provisions by the adoption of new regulations based on
immutable nature of DLT: credit risk management, security and
compliance
▸ Improved customer experience: process simplification,
efficiency, and compliant
Mitigation or Enhancement Management
1
1
22
23

DLT adoption may be affected by certain key indirect variablesFintech Strategic
Roadmap
Independent Relationships with the Economics of the Use Case
DLT
Ecosystem
Adoption
￭ Changing consumer expectations and financial needs, particularly
the millennials. Address different financing models: equity release for
the retired, near-retired, mortgage purchase, and integrated home
ownership solutions [59]
￭ Promote cultural changes and confidence to reduce perceived high
risk due to lack of understanding [61]. Negative perception associated
with banks and mortgage lending
￭ Availability of a scalable DLT infrastructure and optimal performance
DLT
Regulation
￭ Availability of DLT regulation to underpin and facilitate the
digitisation of assets, incorporating all ecosystems participants
￭ Ensure continued financial stability and to protect the best interests
of consumers
Macro
Economics
￭ Changes in housing demand depends on: inflation, wages,
unemployment, mortgage deals [59], and unknowns associated with
Brexit
￭ Demographic driven socio-economic challenges: millennial
homeownership, new lifestyles and working patterns, older generation
retirement funding and care costs, and the huge growth in IoT devices
The economics of the DLT use case may be also affected by certain key indirect and independent variables which are
not under control of the Top 5 banking incumbents. They can influence by promoting the DLT ecosystem adoption.
22
▸ Adoption of an open and complete DLT ecosystem
including all relevant stakeholders of the value chain*
▸ Establish technical and process standards upon
agreement
▸ Initiate use case pilot projects: ‘innovate fast and fail
fast’
▸ Promote cultural change through education and
communication
▸ Regulators are embraced as participants in the
ecosystem with access to the DLT: a more transparent
and real time risk measurement and management system
▸ A DLT approach enables: faster response to market
changes, and greater liquidity
▸ Positive impacts of frictionless digitisation of assets
in terms of liquidity and personalisation: automation
and simplification of complex financing problems
Mitigation or Enhancement Management
(*) Customers, consumers, technology & infrastructure partners [62], banks, RE agents and aggregators, home-service providers, Land Registry, regulators and Government.
4
25
26

Macro
Economy
23
Management of the ‘Digitisation of Assets’ EcosystemFintech Strategic
Roadmap
Joint leadership by the banks
may influence positively
Housing
demand
Inflation
Wages
Unemployment
Brexit
DLT Mortgage
Adoption
DLT mortgage
digitisation
DLT
maturity
DLT Mortgage
Ecosystem
Bank risk
appetite
Operational
risk Financial
risk
Regulatory
compliance
Industrialisation
of mortgages
Cyber-
security
DLT
Ecosystem
Adoption
Consumer
expectations
Cultural
aspects
Scalable
infrastructure
DLT
Regulation
Early
development
Consumer
protection
The Top 5 incumbent banks can drive the ‘Digitisation of Assets’ ecosystem by leading and influencing
complex relationships and interactions with participants
Critical interaction
Direct relationship
Criticality level
(+) low
(++) medium
(+++) high
(++) (+++)
(++)
(+)
(+++)
(++)
(+++)
(+)
(++)
(++)
(++)
(++)
(++)
(+++)
(++)
(++)
(+) (+)
(+++)
(+++)
(+++)
Bank
Management
Priorities
Bank alertness and educational
role with consumer and society
Direct management under
each bank jurisdiction
Fast
development of
the ‘DLT
Mortgage
Ecosystem’ is
a top priority
for banks
4
5
6
1
2
3

Survey Results: Digitisation of Assets
24
Fintech Strategic
Roadmap
We created an online survey to test external views on the digitisation of assets and distributed it to approx 250k Linkedin users targeted at personal
networks, technical, fintech and economic groups. The duration of the survey was 2.5 days. We had total of 49 responses.
▸ For 33% of participants the main driver for the digitisation of assets is to remove friction in processes and
make administration more efficient.
▸ 51% believe that the top dependency for borrowers to adopt digitisation is due to lack of understanding of
purpose and benefits of digitisation of assets.
▸ 43.1% believe that the success of digitation of assets is due to the unlocking of capital which provide faster
access to finance.
▸ The digitisation of assets will create new customer focused business model for 41.2% of participants.
▸ 33.3% believe that slow innovation creates dependency for banks.
▸ 39.2% believe that the top impact on banks of the digitisation of assets would be to power growth through
unlocking value in a new range of asset classes.
Top driver for the digitisation of assets
Top dependency for banks to adopt Digitisation of Assets
Top dependency for borrowers (consumers & businesses) to
adopt the Digitisation of Assets
Why you think the 'digitisation of assets' will succeed
How does the Digitisation of Assets advance the strategic
position of the UK's 5 largest banks
Top impact the Digitisation of Assets will have on the banking
sector
BoE expects banking assets will grow from £5tn to 60tn by
2050. In the UK, how much value do you think could be
unlocked through the 'Digitisation of Assets?

Recommendations:
Fintech Strategic Roadmap for the
UK’s Largest Banks
Fintech Strategic
Roadmap
25

Fintech Strategic Roadmap to 2050
26
Fintech Strategic
Roadmap
£60tn
£10tn
~2020
£20tn
~2025 ~2030 ~2050
£30tn
Value
Years
£5.63tn
Total Asset
Value of
Top 5
Banks
*H1: Extend & defend core business:
- optimise business models,
- enable with new technology &
- strengthen balance sheet
*H2: Build emerging business through innovation
ACTIONS:
Using the 5 Key Success
Factors to Advance the
Strategic Position of the
UK’s Largest Banks
Strong capital planning & financial planning
Disruptive ideas unlock value
Innovate fast and fail fast
Customer focused business models
Utilise Fintech technologies
1
2
4
5
3
*H3: Use R&D to create viable options
‘Digitisation of Banking’
UK’s Top 5
Banks
2030
Potential
Total Asset
Value +
£30tn
Fintech Strategic Roadmap for the UK’s Top 5 Banks
This Strategic Roadmap is developed with “The
Three Horizons Framework” [60] shown as H1,
H2 & H3* which includes the proposed strategic
activities to advance the position of the UK’s
Largest Banks.
‘Digitisation of Assets’ DLT
UK’s Top 5
Banks
2015

Key Success Factors to Advance the Strategic Position of the UK’s Largest Banks
27
Fintech Strategic
Roadmap
Utilise Fintech
Technologies
By using Fintech Infrastructure and Blockchain Technology to transform the delivery of traditional banking products and services to
customers in ‘real-time’. Our Use Case demonstrates how ‘The Digitisation of Assets’ could radically improve the lending
proposition for customers and facilitate the ‘unlocking of value’ to stimulate wider economic growth. The concept of ‘Digitisation’ can
be easily applied to other traditional banking products and services, to the customer’s banking data and external reporting to
regulators.
Strong Capital
Planning &
Financial
Forecast
Disruptive Ideas
Unlock Value
Unlocking value by transforming assets into capital using DLT will contribute hugely to the economic growth of the UK. Economist
Hernando DeSoto, involved with Bitfury’s digitisation of assets proposition, estimates value of “dead capital” globally at $20 trillion
[59]. This demonstrates growth will come from ‘disruptive ideas’ that use Fintech technology as an enabler.
Customer
focused
business
models
Disruptors business models are customer focused and the Banking Incumbents need to employ this ethos to radically improve
customer experience. The 5 Largest UK Banks must change the negative perception, protect ‘stickiness’ and build on the trust
factor created by regulation safeguarding customer deposits. This is key to future proofing the ‘banking sector’ by ensuring it
connects directly with the ‘customers of the future’ (Millennials) in new and innovative ways, e.g. partnerships, digital channels &
mobile.
Innovate Fast
Fail Fast
Innovation is more relevant than ever as banking will look very different in 2050. The Use Case demonstrates that Innovation is
core to Disruptors and becoming more important to Incumbents. However, ‘failing-fast’ is opposite to the UK’s Largest Banks culture
and there are real benefits for corporate innovation to adopt a ‘disruptor’ approach to transform products and services for the next
generation.
1
2
3
4
5
Strong capital planning & financial forecasting is required because banking regulation places enormous pressure on capital
structure of the balance sheet and this applies to a Fintech Start-Up or UK banking incumbent. In this example, the funding of loans
consists of two key elements (i) liquidity to provide loans to customers, and (ii) capital to absorb losses which are regulated by CRD
IV in the UK & EU. In banking, a well defined risk appetite framework and strength of the balance sheet is critical to exploiting future
opportunities.

Successfully Navigating UK Regulation
28
The sector approaches critical mass and starts to deliver a meaningful payback in jobs, innovation and growth. Strong competition
from other regions is emerging to create best-in-class FinTech ecosystems. Increasingly progressive in their use of government and
regulatory policy to support FinTechs. Regions are beginning to specialise in promising disruptive technologies.
Regulatory
support for new
entrants and
innovative
business models
Government
support for
programmes to
open up the
sector, increase
competition,
attract foreign
FinTech and
improve cyber
security
Availability of tax
support for
investors and
corporates
Regulatory
Regime
Government
Programmes
Taxation Policy
The strength of
the UK policy
environment is
due to
supportiveness
and accessibility
of the Financial
Conduct
Authority (FCA),
effective tax
incentives,
numerous
government
programmes to
promote
competition and
innovation which
indirectly support
FinTechs (e.g.,
Open API and
Mandatory
Referrals).
Project Innovate (2014): developed by the FCA to support authorisation for
innovative businesses. Proposed to include a Regulatory Sandbox, which will enable
businesses to test out new products and services, in an environment that is exempt
from standard regulations
The UK is market-leading for the
prevalence and impact of initiatives
across a number of agencies,
including HM Treasury, British
Business Bank (BBB), UK Trade
and Investment's (UKTI),
Department of Business,
Innovation and Skills (BIS),
Innovate UK and Tech City UK.
FinTech-focused initiatives range
from requiring banks to refer SMEs
that are rejected from bank credit to
alternative finance platforms.
Improving access to privately-owned
common infrastructure:
- Payments infrastructure or systems
(such as BACS and FPS in the UK)
typically owned and operated by large
banks
- Government data, including Public
Sector Information (PSI) such as
geo-spatial, environment, transport, health
and economic data
- Customer data, in particular customer
banking data stored in FIs which enables
customers to access new and better
services
Tax Initiative: EIS (1994): tax relief for investors in smaller high-risk trading
companies - SEIS (2012): tax relief for investors in high-risk start-up projects - VCT
Scheme (1995): tax relief for investors in VCTs. VCTs subscribe to shares in, or
lend money to, small unquoted companies - Entrepreneurs Relief (2008): capital
gains tax relief for entrepreneurs when they sell business assets - R&D tax credits
(2002): R&D expenditure tax relief - Innovate Finance ISA (IFISA) (2016): ISA
investment eligibility for P2P loans
Creation of a FinTech “delivery
body” to drive-high impact policy
initiatives to implementation as
quickly as possible
Build on the FCA’s position as the
most progressive regulatory body
globally
Deliver practical business support to
FinTechs
Build FinTech “bridges” to support
UK FinTech expand internationally
Mandatory Referrals
Open Bank API framework
IFISA
Access to payment
infrastructure
Digital Saving Password
Office space and professional
service
Business banking accounts
UK regulatory perspectives
Fintech Strategic
Roadmap

Next Steps
29
Fintech Strategic
Roadmap
7. CONCLUSIONS 8. RECOMMENDATIONS 9. OBSERVATIONS 10. ‘NEXT STEPS’
Use disruptive ideas to unlock value.
Ensure Innovation is a core
component of Corporate Strategy.
Transform business models to be
customer focused.
Utilise Blockchain to offer customers
faster & efficient access to lending
products.
Focus on profitability to strengthen
the balance sheet and reduce risk of
failure.
A well defined risk appetite framework
is required and strength of the
balance sheet is critical to exploiting
future opportunities.
Embed creative thinking and
exploration of disruptive ideas
through R&D and ‘Idea Labs’.
Invest in Innovation through
Intrapreneurship, Partnerships,
Accelerators & Acquisitions.
Redefine the business model
purpose to serve customers needs
that provides value and is profitable.
Build &/or access largescale
Blockchain development capability.
Develop a robust risk appetite
framework, focus on activities that
generate profitability and strengthen
the balance sheet.
The immaturity of DLT may present
security, reliability & scalability
issues which may lead to lower
adoption rates.
Fintech Start-Ups lack customers,
depth of capital and regulatory
expertise to scale. Key threats are
the 4A’s & BigTechs, have access to
capital & entered the digital
payments and wallet markets.
Digitisation of Assets could increase
systemic risk. This requires
transparency with regulators
including direct access the bank’s
loan book via DLT.
Credit risk management will need to
improve in line with DLT to ensure
an efficient process that ensures
loan quality is maintained.
1. Create R&D and/or Idea Lab.
2. Develop an approach to
innovation.
3. Identify business model changes
required to become customer
focused.
4. Assess Blockchain required
capability and develop plan.
5. Assess current risk appetite
framework and adjust to align with
customer focused business model.
6. Review capital allocation and
identify areas where cost of capital
can be reduced &/or re-allocated to
investment in innovation, NPD &
JV’s / acquisitions / partnerships.

References & Acronyms
Fintech Strategic
Roadmap
30

Project References
1. Market cap of the big five, Accessed 18 February 2017 https://www.slideshare.net/FrontlineVC/challenger-banks-in-europe-challenge-accepted
2. Collated by CMA based on banks annual reports, Accessed 18 February 2017, https://www.linkedin.com/pulse/ultimate-neobank-battle-mortgages-philippe-gelis
3. CapGemini, BNP Baripas. “2016 World Payments Report”. June 2016. Accessed 20 February 2017 https://www.worldpaymentsreport.com,
4. The 4 A’s represent the world’s most innovative, profitable & capitalised technology companies, i.e. Amazon, Alibaba, Alphabet and Apple.
5. MIPIN - The World’s Leading Property Market - Speaker Profile. Accessed 17 February, 2017. http://www.mipim.com/en/Contributors/3074635/Lifthrasir-Ragnar
6. Ragnar Lifthrasir, 21 May 2016. “2016 Is The Year Real Estate Wakes Up To Blockchain”. Accessed 18 February 2017.
http://bravenewcoin.com/news/2016-is-turning-out-to-be-the-year-real-estate-wakes-up-to-blockchain/
7. Diana Ngo. 9 August 2016. “IBREA Founder: Sleepy Real Estate Industry Wakes Up To Blockchain“. Accessed 19 February, 2017.
http://blockchain-finance.com/2016/08/09/ibrea-founder-sleepy-real-estate-industry-wakes-up-to-blockchain/
8. Bailey Reutzel. 9 January, 2017. “How Barclays Stole the Blockchain Spotlight in 2016”. Accessed 17 February, 2017.
http://www.coindesk.com/barclays-stole-blockchain-spotlight-2016/
9. “Barclays and Wave complete world first blockchain trade finance transaction”. 7 September, 2016. Accessed 18 February, 2017.
http://www.newsroom.barclays.com/r/3396/barclays_and_wave_complete_world_first_blockchain_trade
10. Barclays Accelerator. Accessed 18 February, 2017. http://www.barclaysaccelerator.com/#/
11. Oscar Williams-Grut. 30 October, 2016. “HSBC has 3,000 people working on innovation in the same London office as rock and roll mag NME”. Accessed 18
February, 2017. http://uk.businessinsider.com/hsbc-fintech-innovation-blue-fin-building-nme-tate-modern-2016-10?r=DE&IR=T
12. Lloyds Bank Group. Bankers swap ties for tech and take up residence at Startupbootcamp. Accessed 18 February, 2017.
http://lloydsbankinggroupdigital.com/bankers-swap-ties-for-tech-and-take-up-residence-at-startupbootcamp/
13. RBS. Annual Report and Accounts 2015. Accessed 18 February, 2017. http://www.investors.rbs.com/~/media/Files/R/RBS-IR/results-center/annual-report-2015.pdf
14. Santander InnoVentures. Accessed 18 February, 2017. http://santanderinnoventures.com
15. Kyle Torpey. 6 October 2016. “Chicago’s Cook County To Test Bitcoin Blockchain-Based Property Title Transfer.” Accessed 16 February 2017.
https://bitcoinmagazine.com/articles/chicago-s-cook-county-to-test-bitcoin-blockchain-based-public-records-1475768860/
31
Fintech Strategic
Roadmap
Annex

16. IBREA. Los Angeles IBREA Meetup - Using Blockchain For Real Estate Title. Accessed 18 February, 2017.
http://www.ibtcrea.org/events-bp/2016/11/9/los-angeles-ibrea-meetup-using-blockchain-for-real-estate-title
17. Diana Ngo. 9 August 2016. “IBREA Founder: Sleepy Real Estate Industry Wakes Up To Blockchain“. Accessed 19 February, 2017.
http://blockchain-finance.com/2016/08/09/ibrea-founder-sleepy-real-estate-industry-wakes-up-to-blockchain/
18. Lynsey Barber. 25 January, 2017. “Is blockchain a "new operating system for the planet"? Barclays vice chairman Jeremy Wilson thinks so“. Accessed 18 February,
2017. http://www.cityam.com/257805/blockchain-new-operating-system-planet-barclays-vice
19. HSBC. HSBC appoints Technology Advisory Board. Accessed 19 February, 2017.
http://www.hsbc.com/news-and-insight/media-resources/media-releases/2017/hsbc-appoints-technology-advisory-board
20. Oscar Williams-Grut.23 September, 2015. “14 banks looking at bitcoin and blockchain, ranked by how much they 'get it'. Accessed 18 February, 2017.
http://uk.businessinsider.com/banks-position-on-bitcoin-and-blockchain-2015-9?r=US&IR=T/#14-morgan-stanley-totally-surreal-1
21. Ian Allison. 7 December, 2016. “Blockchain: RBS builds Ethereum-based distributed clearing house”. Accessed 18 February, 2017.
http://www.ibtimes.co.uk/rbs-builds-ethereum-based-distributed-clearing-house-1589897
22. Michael del Castillo. 28 February, 2017. “Big Corporates Unite for Launch of Enterprise Ethereum Alliance“. Accessed 4 March, 2017.
http://www.coindesk.com/big-corporates-unite-for-launch-of-enterprise-ethereum-alliance/
23. Velox Systems. Accessed 16 February, 2017. http://www.veloxsystems.net/
24. IBREA. Accessed 20 February 2017. http://www.ibtcrea.org/initiatives/
25. Kyle Torpey. 6 October 2016. “Chicago’s Cook County To Test Bitcoin Blockchain-Based Property Title Transfer.” Accessed 16 February 2017.
https://bitcoinmagazine.com/articles/chicago-s-cook-county-to-test-bitcoin-blockchain-based-public-records-1475768860/
26. Barclays. Accessed 18 February, 2017. https://www.home.barclays/careers/our-roles/technology.html
27. Oscar Williams-Grut. 30 October, 2016. “HSBC has 3,000 people working on innovation in the same London office as rock and roll mag NME”. Accessed 18
February, 2017. http://uk.businessinsider.com/hsbc-fintech-innovation-blue-fin-building-nme-tate-modern-2016-10?r=DE&IR=T
28. Lloyds Annual Report & Accounts. Accessed 19 February, 2017.
http://www.lloydsbankinggroup.com/globalassets/documents/investors/2015/2015_lbg_annual_report_v3.pdf
29. Blue Dun. 23 January, 2016. Q&A with John Stewart of RBS Solutions. Accessed 19 February, 2016. blue-dun.com/2016/01/23/rbs_solutions/
30. Accessed 18 February, 2017. http://www.santander.co.uk/uk/about-santander-uk/about-us
31. Oliver Smith. 25 March, 2016. “Ana Botin leads Santander’s transformation into a digital bank”. Accessed 18 February, 2017.
http://www.thememo.com/2016/03/23/santander-tech-fintech-biometric-banking-bank/ 32
Fintech Strategic
Roadmap
Project References
Annex

32. Bush. Oliver; Knott. Samuel; Peacock. Chris; The Bank of England’s Quarterly Bulletin Q4 2014. “Why is the UK banking system so big and is that a problem?”
Accessed 10 December 2016. http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q402.pdf
33. https://www.theguardian.com/business/2016/aug/18/ons-data-shows-uk-wealth-wedded-to-property
34. https://www.uswitch.com/media-centre/2015/07/one-in-four-millennials-still-use-childhood-bank-account/
35. Market cap of the big five, Accessed 20 February 2017, https://www.slideshare.net/FrontlineVC/challenger-banks-in-europe-challenge-accepted
36. Property Data Report 2016, Facts and figures about the UK commercial property industry to year-end 2015, Accessed 20 February 2017
http://www.bpf.org.uk/sites/default/files/resources/PIA-Property-Report-2016-final-for-web.pdf
37. State of the UK housing market in 5 charts: http://www.telegraph.co.uk/property/house-prices/the-state-of-the-uk-housing-market-in-five-charts/
38. We must tackle the housing crisis" recommends Economic Affairs Committee, Accessed 20 February 2017
https://www.parliament.uk/business/committees/committees-a-z/lords-select/economic-affairs-committee/news-parliament-2015/housing-report-publication
39. House prices to remain flat until 2019 amid uncertainty over Brexit negotiations
http://www.telegraph.co.uk/property/house-prices/house-prices-to-remain-flat-until-2019-amid-uncertainty-over-bre/
40. Capital Regulations: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32013L0036; https://www.handbook.fca.org.uk/handbook/MCOB/
41. Department for Business & Innovation skills - statistical release
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/467443/bpe_2015_statistical_release.pdf
42. Financial Conduct Autorithy - Regulatory barriers to innovation in digital and mobile solutions
https://www.fca.org.uk/publication/call-for-input/call-for-input-regulatory-barriers-to-innovation.pdf
43. European’s assets-backed securities purchase programme (ABSPP) https://www.ecb.europa.eu/mopo/implement/omt/html/abspp-faq.en.html
44. 2017 Global Regulatory Outlook published by EY,
http://www.ey.com/Publication/vwLUAssets/ey-how-can-banks-thrive-in-the-new-regulatory-environment/$FILE/ey-how-can-banks-thrive-in-the-new-regulatory-envir
onment.pdf
45. BBA. Statistics / High Street Banking. December 2016 figures for the high street banks. 26th January 2017. Accessed 20 February, 2017.
https://www.bba.org.uk/news/statistics/high-street-banking/december-2016-figures-for-the-high-street-banks/#.WKyAFBLNzEY
46. Santander Bank UK. UK Group Holdings plc. Investor Update for the year ended 31 December 2016. January 2017
33
Fintech Strategic
Roadmap
Project References
Annex

47. Data source: Company Annual Reports 2015
48. Jasmine Birtles. 2 November 2016. “The shocking number of people without bank accounts”. Accessed 4 February. 2017
http://www.moneymagpie.com/manage-your-money/the-shocking-number-of-people-without-bank-accounts
49. CMA (Competition & Markets Authority 2015. Retail Banking Market investigation, 9th August, 2016. Accessed 12 February. 2017
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470032/Banking_summary_of_PFs.pdf
50. British Banking Association (BBA).Help at Hand report 2016. Accessed 12 February 2016. https://www.bba.org.uk/landingpage/waywebanknow/
51. Ant Financial. Our Vision, June 2016.
52. Nesta. “Pushing boundaries. The 2015 UK alternative finance industry report.”, February, 2016. Accessed 18 February, 2017.
http://www.nesta.org.uk/publications/pushing-boundaries-2015-uk-alternative-finance-industry-report
53. McKinsey Global Institute. September 2016; Digital Finance for all: Powering inclusive growth in emerging economies. Accessed 4 February 2017
http://www.mckinsey.com/~/media/McKinsey/Global%20Themes/Employment%20and%20Growth/How%20digital%20finance%20could%20boost%20growth%20in%
20emerging%20economies/MG-Digital-Finance-For-All-Full-report-September-2016.ashx
54. Wikipedia. Retail Banking; Accessed 7 February 2017. https://en.wikipedia.org/wiki/Retail_banking#Products
55. https://global.alipay.com/, Accessed 21st February 2016
56. MIT Fintech: Future Commerce (Module 3; Dediu 2013). Accessed 27 February 2017. ‘Accelerating rates of adoption’
57. CML Yearbook 2015/2016. Accessed 23 February 2017. https://www.cml.org.uk/about-us/cml-yearbook/
58. 2016 Ranking of the Best UK Banks in the UK (Top British Banks). Accessed 6 February 2017
http://www.advisoryhq.com/articles/top-5-uk-banks-ranking-biggest-british-banks-best-banks-in-the-uk/
59. The First Government To Secure Land Titles On The Bitcoin Blockchain Expands Project, Accesed 21st February 2017,
https://www.forbes.com/sites/laurashin/2017/02/07/the-first-government-to-secure-land-titles-on-the-bitcoin-blockchain-expands-project/#1b2f27874dcd
60. How much will the average UK home cost in 2030, Accessed 20th February 2017,
http://www.davidconway.co.uk/news/how-much-will-the-average-uk-home-cost-in-2030.html
34
Fintech Strategic
Roadmap
Project References
Annex

35
4A’s Amazon, Alibaba, Alphabet & Apple
API Application Programme Interface
bn Billion (x109
)
BCA Business Current Accounts
BoE Bank of England
BigTech Big Technology companies like Google, Apple, Facebook, ...
CAC Customer Acquisition Cost
CRD Capital Requirements Directive
Cx Customer Experience
DLT Distributed Ledger Technology
FCA Financial Conduct Authority
FY Fiscal Year
HFT High Frequency Trading
IT Information Technology
LTV Loan to Value
m Million (x106
)
P2P Peer-to-Peer
PCA Personal Current Accounts
PFM Personal Financial Management tool
PSD2 Payment Service Directive, Second generation
RE Real Estate
tn Trillion (x1012
)
SME Small and Medium Enterprise
SWOT Strength, Weakness, Opportunities and Threats
VC Venture Capital
Ux User Experience
yoy year on year (annual growth)
Fintech Strategic
Roadmap
Acronyms
Annex

Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course final report

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course final report

Similar a Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course final report (20)

Último

Último (20)

Fintech Strategic Roadmap for the UK’s Largest Banks: our MIT Fintech course final report