GUEST LECTURE AT NMIMS by NIRAJ VAIDYA: 2nd part of the Fintech course. Topic name UNDERSTANDING FINTECH landscape

2. Acknowledgement
and Disclaimer
All the material in this deck is been prepared using resources published on public
domain by various subject matter experts, Technical and domain experts and visual
presentation experts. The deck is a collection of information published on
web/internet sites, blogs and informative portals and it is prepared purely for
educational awareness perspective with not for profit motive. I do not claim any copy
right or ownerships IP whatsoever for any of the slides.

3. Understanding
Fintech
Fintech for customers (Individuals/SMEs)
Fintech for banks and regulators
Fintech for technology companies
Fintech for investors
Not all are same…
Not all are competitors…

5. There are four broad
categories of users for
fintech
1)B2B for banks
2)Their business
clients
3)B2C for small
businesses
4)Consumers

6. Decomposing the
‘Incumbents’ and ‘Challengers’
Fintech
Technology
Providers
Fintech
Financial Services
Providers
‘Techfins’
The Giants
BANKs that are
Laggards
(slow movers)
BANKING GIANTS
BANKs that are
Innovative/Progressive
(early adaptors)

7. Who
could
win the
Race ?

8. https://www.visualcapitalist.com/a-visual-history-of-the-largest-companies-by-market-cap-1999-today/
By Market Capitalization…

9. By Overall Forbes Ratings…
https://www.forbes.com/global2000/list/#tab:overall

10. Understanding
What is happening
Disruption
Collaboration
Innovation
Re-definition
Not all are same.
Not all are equally pursued.

11. Typical Disruption Cycle across other industry
Source: McKinsey

12. Three Natural Phenomenon

13. Unbundling of Banking Services
Transactions and Utility Value of bank starts moving out

14. Network effect of connected and related
utilities/solutions accelerates this

15. Network effect of connected and related
utilities/solutions accelerates this

16. Convergence with Digital Commerce and Digital
Lifestyle solutions

17. CONNECTED EXPERIENCE
Delivering End to End Data and Insight Driven Customer Experiences
MARKETING SOCIAL SALES SERVICE

18. CONNECTED EXPERIENCE
Delivering End to End Data and Insight Driven Customer Experiences

21. Bank’s affairs with FinTechs and Startups
Collaboration
Source: Mediium.com

23. Different Engagements Model
Innovation Approach
Stagnation “old way“
Disconnected – Window Dressing
Experimental Innovation
Approach
Cool, External Interaction,
but often a “One off event“
Innovation Engine
At Scale approach
Embedded, Sustainable, Product &
Ecosystem Co-working Innovation,
External Know-How
“Classical disconnected“ Group Strategy Department
“Classical disconnected“ Group R&D Department
Hackathon - Appathon – Pitch Day
„Invite external teams to hack or pitch
an innovative idea
• Own Digital Innovative Bank Subsidiary mBank (Commerzbank), Simple (BBVA)
• Tech Partnerships Deutsche Bank, Generali, La Caixa
• Embedded Innovation Labs HSBC, Deutsche Bank, & more
• Shared Innovation Labs: UBS Innovation Lab @ Level39
• Sustainable FinTech Support Startup-Garage (Commerzbank: Co-
Working-Space, Financial Space), Allianz X
• Digital Factory Co-Working “IT & Business employees Product
Bundles Beyond Banking Leveraging a new EcoSystem DB
• Academic Partnership MIT Deutsche Bank

24. BBVA
• Global pilot to train up 1000 design ambassadors to
ensure that design is at the centre of every project in
the organisation and where all the employees put the
customer first, collaborate with each other and face
challenges in a creative way.
eID
• 40% of consumers have abandoned a bank sign up
process because of the time and effort needed whilst,
on average, European eID schemes provide 69% of the
information that financial institutions need in order to
onboard a customer wholly digitally , some providing
all
BankStore
• Could be a way to achieve a ‘high street’ presence for
digital challengers, at a low cost whilst
• Solution to cost of established Retail players’ branch
networks whilst maintaining reach to those customers
who have not yet ‘gone digital’
• Open APIs is the catalyst …but depends on participant
collaboration
CaixaBank
• Hopes to attract at least 500,000 millennials to
ImaginBank by end of 2017, for break even
• Only accessible through a mobile app or via Facebook,
customers will have access to services through live chat
option in the mobile app as well as via Twitter and
WhatsApp, and a call-centre.
• Offers current accounts, transfers and contactless digital
payments without commission charges as well as
preapproved personal loans of up to €15,000 (no fee)
Santander
• Banco Santander is overhauling the operations of its
direct banking subsidiary in Spain revamping its online
and mobile presence as part of a group-wide mission to
recruit 30 million digital customers by 2018.
• A modern digital-first operation, adopting the latest in
machine-learning technology to gain a deeper, more
personalised, understanding of its customers and
enhance its go-to-market capability.
• Using a hybrid architecture of private and public cloud
ING
• Humanoid robot “Ginger” touring its Dutch branches to
teach kids how to manage their money.
Raiffeisen Bank
• Rolling out new robotic process automation (RPA)
software (Accenture and Blue Prism)
• Aiming to build the next generation of the "digital
workforce“ through automating a wide range of
business processes for reduced costs, improved
compliance and increased productivity.
HSBC
• “Ask Olivia” about credit cards or current accounts and
the friendly virtual assistant will be happy to help.
Mastercard
• Payments using face recognition in 12 European
countries then ultimately worldwide
• MasterCard holders will be able to approve payments
on their mobiles, using their smartphone's fingerprint
scanner or facial recognition technology based on
selfies.
Robotics & Customer
Experience
“Digital” First Banking
Retail and Consumer Banking
Innovation Examples
Organisation & Industry

25. Still, Some banks
will continue to
loose the battle

26. Loyalty with
a bank is a
challenge

27. Customer
Engagement
has lots of
friction

28. Aggressive banks are learning to redefine the
banking business model

31. Also its time
for an
Alternative
Lending
Product

38. Some are learning to redefine the banking
infrastructure to have open collaboration model

41. Collaboration and API Banking

43. NPS stands for Net Promoter Score which is a metric used in customer experience programs. NPS measures the loyalty of customers to a company.

47. Why the ‘Tech’ in the
‘FinTech’ is such a big
deal ?

48. Q & A

49. Thank you
Presented by Niraj Vaidya
contact.nyruj@gmail.com
http://in.linkedin.com/in/nirajvaidya
https://twitter.com/n_y_r_u_j