FINTECHS & CORONA; WHICH FINTECH WILL GROW IN POST CORONA ERA by GÖRKEM ÇOKÇETİN

1. FINTECHS & CORONA;
WHICH FINTECH WILL GROW IN POST CORONA ERA
GORKEM COKCETIN-SEEED

3. ABOUT ME
 20 years versatile banking experience in 4 different countries and 4 different banks
 12 years in Corporate banking with different roles in branch, region and head office level with sales, marketing and product
development, product management experience
 8 years Innovation and Fintech experience recently Head of Fintech Engagement and Partnerships in Emirates NBD
 Manage, participate and contribute to many projects in digital banking , digital transformation, open banking, product
development and CRM
 Corporate trainer on innovation and creative thinking , start-up mentor on business model generation
 Senior Advisor for EFMA on fintech engagements and advisor for 2 FinTechs
23.04.2020

4. OVERVIEW OF FINTECH
ECO-SYSTEM BEFORE
CORONA
• Q3 2019 was the largest
quarter by volume $12.5
billion without any single
deal over $500 Million
• Middle East and Africa
represent only %2 of 2019
volume by $769 Million
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8. MENA – FINTECH
SECTOR IN 2018-2019
• %13 of all deals in 2018
and 2019 YTD attributable
to FinTech,
• FinTech ranks only 4th by
total funding with
saturation in the e-
commerce and logistics
industries,
• FinTech has now surpassed
all other industries by
number of deals since 2018
• In total, 127 MENA-based
FinTech startups have
raised funding and 2
FinTechs undergone IPO
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9. IS CORONA A BLACK SWAN OR THE NEW NORMAL?
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10. MAIN DRIVERS SHAPE THE POST CORONA ERA FOR FINTECHS
COVID-19 has had an inconceivable impact on all of our lives and is reframing our way of life on a daily basis. Never before
have we seen such a drastic and immediate impact across businesses in multiple sectors.
 Governments are committing $ trillions to help enterprises, SME’s and employees, the need for finance management
has never been more important.
 There will be a huge liquidity almost with zero interest but the main battle ground will be keeping the businesses
running , protect the households wealth and ensure supply and demand with using the incumbent finance system still
not ready for a rapid change (opportunity for Fintechs)
 The crisis will lead to fundamental shifts in how we work, how we spend, how we interact in private and business
context.
 The financial data models becoming obsolete and still not know what will be the new ones
 Cash will be «dirty» and e-money (digital Money) will be the king, digital combine with physical will become a must
 The crisis will result in a revisit of how investors and potential buyers perceive value, with some verticals expected to see
a wake-up call , while others embrace opportunities of the recession might bring along

11. OVERVIEW OF FINTECH SECTORS WHICH WILL GROW
Business (Mainly SMEs)
• SMS lending – mostly for working capital
• Supply chain management & finance
• Digital Business Banks
(Challenger or bank-owned)
• Digital & physical integration
Households
• Wallets & PFM
• Digital payments and check-outs
• On-demand and digital insurance
• Chat bots
Enablers
• Eco-system play
• Digital Identity (Onboarding, e-signature and notarization)
• Fraud prevention & secure payments,
• Blockchain
• AI and big data

12. DEMAND AND REGULATIONS MATRIX
Customer Demand
EasofRegulations
E-payments &
Check-outs
Digital Banks
Wallets
Digital
IdentitySME
Lending
Supply Chain
Management
Chatbots
AI &Big
Data
On-Demand
Insuarance
PFM
Fraud
Prevention
Blockchain
Low Mid High
Competion Level
Investment Level
HighLow
High
High
Consumer
Lending

13. The customer base will increase but incumbents will
join. Generating revenue is will become harder
FIN-TECH During Crisis Post Crisis
Interchange and FX revenue collapse but chances for
acquiring new customers by stimulus packages
Digital payments are increasing but high losses in
transaction volumes and revues
Short term FX solutions to counter volatility
Volatility is the best friends of trade
De-risking and fund withdraw
Need for funding, high risk of defaulters
Defaults are big risk, FinTechs can play an important
role in stimulus packages (Square, Paypal Venmo)
Re-Mortgage to get disposable income.
Shift to online
The end of cash is near, digital payments will boost
but travel sector will reduce the revenues
Focus from incumbents to drive consolidation
Free brokerage has attracted millions of new
customers
Pressure on fees, robo-advisory will rise
Old school lending will merge with FinTechs
Reseccion loans to grow the books. New lending
facilities with attractive pricing
Accelerated shift to digital disruption
Revenue Decline Mild Increase High Increase

14. Not immune to crisis. Not a «digital gold» yet
Never a better time to automate
Chat bot army already mobilizes
Work from Home shows the vulnerabilities
Not a focus now, foucus is on keep business
continuity
Defults are up, tech is the last thing on the mind
Partnerships to fast track rescue packages
New innitiatives or on hold, pressure on fees
Very low trade, very low remittances
Crypto based wallets and credit cards is a need.
Crypto based rewards. CB Backed Crypto Currencies
RPA will be on the rise. SMEs are shouting for more
Call centers start optimizing, Bot solutions combined
with agents and virtual agents will be the key
E-Identity will become norm with digital KYC
Fraud prevention is key.
Lending and mortgage breakthroughs are on the way
Supply chain management and financing will grow
but the risk appetite will be low
Challenges to update API standards
Re-Mortgage to get disposable income.
Shift to online, enable felxiable investment options
No major push to new alliances
FIN-TECH During Crisis Post Crisis
Revenue Decline Mild Increase High Increase

15. MACRO ECONOMIC IMPACT: RECOVERY TO A NEW NORMAL STARTING IN
Q3 2020
23.04.2020
Till now to 2020-Q3 Crisis
2020-Q3&Q4 Recovery
(Stabilization)
2021-Q1&Q2 New normal

16. CLOSING REMARKS ABOUT NEW NORMAL
 «Digital or die» will be the motto for every sector, who adapts the digital faster will survive
 Review of what is really essential to stay physical and which can be digitalize
 Focus on combing digital with physical especially in your vertical
 If you already have a fintech & start-up with customer base probably you will see more investors knocking at your door
in Q3, but don not expect previous valuations
23.04.2020