Shortened version of Kwiecinski Business Advisory presentation at Visa Mobile Day conference on March 2, 2016 in Warsaw to a wide audience of Polish banks. On how to win as a bank in a market increasingly under threat from nimble FinTech competitors.

1. FinTech is coming –
you can love it or hate it,
but you cannot ignore it
Krzysztof Kwieciński, Kwiecinski Business Advisory

2. | FinTech is coming | March 02, 20162
FinTech: companies that use
technology to make financial services
more efficient
Wikipedia

3. There might be several important reasons
why many consumers like FinTechs
| FinTech is coming | March 02, 20163
Fitting
into the
context
Feeling of being
underserved by
the banks
Speed
Lower
cost
Lower
risk
aversion
Transparency
Approachability
Easy user
experience
Privacy

4. Venture Capital funds have been investing
massively in FinTech
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Estimated global VC investments in FinTech companies
20
12
4
32221
0
5
10
15
20
20142013
+6%
+54%
+64%
+33%+42%
+205%
2008 2015
+8%
20102009 2011 2012
USD bilion p.a.
Sources: CBInsights, KPMG, Kwiecinski Business Advisory
annual percentage growth

5. For many FinTechs the valuations have already
reached the „Unicorn” level
| FinTech is coming | March 02, 20165
Source: Venture Beat
FinTech Unicorns – young companies valued at over USD 1 billion (Jan 2016)
Lending space Payments space Other financial services

6. FinTech is in the air also in our region
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Selected FinTech companies already active in the CEE region
Lending space Payments space Other financial services

7. The situation of the financial services today is
similar to that of the airline business in 2000
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• Competition limited by regulation
• Moderate cost discipline
• Bundled services
• Single market focus and local scale
• Important aspects of competition
escaping from regulation
• Stringent cost discipline
• Unbundled services
• Multi-market focus and scale
2000: Domination of legacy players 2016: Domination of disruptors
Comparison of CEE airline business situation in 2000 and 2016

8. | FinTech is coming | March 02, 20168
You can outsmart FinTech:
use mobile to design for the
consumer needs and
combine your strenghts with
that of FinTechs
Picture: Kwiecinski Business Advisory

9. Putting emphasis on mobile can boost efficiency in
addressing and monetizing customer needs
| FinTech is coming | March 02, 20169
Mobile enabled customer lifecycle shape
RelevancyDesign for customer need
Organic customer acquisition
Cross sell of products/services
Nimble improvement for high
customer satisfaction
Lower costs
Incremental revenues
Retention

10. Designing for consumer needs
10
Launching the solution to
address and monetize the
consumer need
Testing & improving
the solution
Developing a prototype
solution to the need
Potential means:
• Ideation
Identifying an interesting
need to solve for
Potential sources:
• Research
• CRM and consumer
feedback
Potential approach
Mobile services enable for short iteration cycles
– getting where the real need is and monetizing it quickly
Potentially completely
pivoting and
redefining the need
you solve for

11. Combining design with sourcing innovation in an
organized way
| FinTech is coming | March 02, 201611
Designing for consumer needs. Building a culture enabling
innovation → sourcing from within.
Building an interface with external
innovation → sourcing from the
environment.
+ +
Key building blocks

12. | FinTech is coming | March 02, 201612
You can leverage the wealth of mobile
to disrupt the FinTech disruptors
…while you still can
You can leverage the wealth of mobile
to disrupt the FinTech disruptors
…while you still can