1. 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

2. Do Banks underestimate the danger from FinTechs?, WSJ 3 Oct 2014
FINTECH Conference
Banking Conference
Which side are you on?

3. FINTECH Reports & Resources

4. 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.

5. 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

6. 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?

7. 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

8. 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

9. Innovative Partnerships are Key
Example: Santander & Funding Circle

10. Contacts
Susanne Chishti, CEO
Email: susanne.chishti@fintechcircle.com
uk.linkedin.com/in/susannechishti/
@FINTECHCircle
www.fintechcircle.com