Contenu connexe


Navigating the fintech landscape part 03

  1. Navigating the Fintech Landscape +WealthTech (Part 03) By Jaideep Tibrewala Head of Product - Glide Invest 2022 Mar | v01
  2. Disclaimer This presentation is meant for private circulation only. All the content is taken from material that has been made available to me through various sources, both online as well as personal network. All sources are referenced at the bottom of each slide. Storyline and summaries are mine. The rest are represented as-is in most cases.
  3. BigTech are Transforming Fintech
  4. The Rise of BigTech companies in Fintech: Facebook, Apple, Google and Amazon ● Big tech companies are taking on the role of fintech vendors through partnerships ● In big tech’s race to become the go-to app for banking, shopping, and connecting, legacy banks face the threat of being further pushed out of the financial system Source: The Big Tech in Fintech Report, CB Insights, 2021
  5. 4 Key Drivers of BigTech Investments in Fintech Source: The Big Tech in Fintech Report, CB Insights, 2021
  6. Without the need to become Banks, BigTech is unbundling traditional banking and payments services • Aims to consolidate its payments strategy across different apps, and announces a new team for Facebook Financials + Whatsapp payments in India • Recommits to building an e- commerce empire and launches shops across FB and IG • Scales back and rebrands its cryptocurrency initiative • Bundling services across entertainment, news and payments. Launches AIO subscription service – Apple One • Acquires technology that enables phone-to-phone transactions (POS) • Launched Apple Card business with Goldman Sacs and extends to Apple Family Card • Revamps its Google Pay app and adds digital banking offering – now includes payments, personal finance, deals and banking services • Steps into the remittance market through partnerships with Wise and Western Union; 36% of UPI payments in India (as of Feb 2021) • Wants to conquer online shopping next – Partnership with Shopify; Shopping Graph + Shopping from Screenshot • Building a bank for itself by offering range of banking services for merchants and customers • Adds business lending to attract more SMBs to its marketplace + partnership with Marcus by Goldman Sacs for digital line of credit • Enhances payments and ecommerce in India – partners hip with Kuvera for Personal Finance Source: The Big Tech in Fintech Report, CB Insights, 2021
  7. Amazon is determined to make Amazon Pay the go-to payments system in India US Based Companies India Based Companies Investments Acquisitions Source: The Big Tech in Fintech Report, CB Insights, 2021
  8. Impact of Pandemic on Wealth Mgmt Space
  9. Uncertain times have made clients question what they value and how they change during times of distress ● HNWIs lean to self-directed investments during good times and return to advice-seeking behavior and strategic asset allocation amid crisis and volatility. ● Clients are becoming more risk averse, are increasingly focused on achieving personal goals aligned to their purpose, and want to enhance their financial protection, diversification and security. ● For wealth managers, whether they be robo or physical, complementing a strategic focus on service and engagement with a clear emphasis on purpose holds the key to elevating client experiences and demonstrating the long-term value of wealth management. Source: Global Wealth Research Report, E&Y, 2021
  10. As a result of Covid-19, investors plan to adopt more digital and virtual tools provided by their Managers Top Features that clients would be willing to pay their wealth manager more for Source: Global Wealth Research Report, E&Y, 2021 Clients indicate the relationship with their wealth manager has become less personal, in terms of the level of personal interaction
  11. 78% of Millennials plan to use more digital tools & 81% think technology has made investing efficient Gen Z can be only expected to use even more technology for wealth mgmt Source: Global Wealth Research Report, E&Y, 2021
  12. (1) A Global Wealth Research Survey brings forth selection criteria for wealth managers for HNIs Source: Global Wealth Research Report, E&Y, 2021
  13. (2) Financial goals that clients will now discuss, manage and delegate to their wealth managers Source: Global Wealth Research Report, E&Y, 2021 Sharp decline in focus on taxes Increased demand for certainty (wealth protection)
  14. (3) Types of personal data that clients are willing to share with their primary wealth managers Source: Global Wealth Research Report, E&Y, 2021
  15. (4) Key activities that clients, who prefer to use hybrid engagement models, wish to use Source: Global Wealth Research Report, E&Y, 2021
  16. HNWIs now make complex wealth management demands as they have more options to choose from Source: World Wealth Report 2021. CapGemini, 2021
  17. NeoBanks for the New Generation
  18. India has seen a massive growth in the volume of UPI payments across platforms
  19. WealthTech startups are rebundling the consumer bank of the future Source: Fintech Report Q4 2019, CB Insights, 2020
  20. The Rise of NeoBanks: BaaS will enable any company to launch financial products ● Digital banking is the rage among consumers for ○ Speed, Control, and Being touch-less ● BaaS platforms specialize in taking one layer of the financial services stack and making it easier than ever for their enterprise clients to quickly outsource or launch a new offering. Their services can range from shipping a new depository account, credit card, or even leveling up your fraud prevention or know-your-customer (KYC) capabilities. ● BaaS is hugely popular with investors as it can enable any company to launch financial products.
  21. In the US, Fintech players add savings accounts to further automate financial services Source: Fintech Report Q3 2019, CB Insights, 2020 • Wealthfront has a similar cash deposit account as Betterment • Affirm announces savings accounts and will operate like a traditional bank • SoFi is building a full-scale banking platform for its 500,000+ members
  22. India sees a wave of challenger banks tackling customer pain points and capitalizing on UPI adoption Source: Fintech Report Q4 2019, CB Insights, 2019
  23. Investing for Children is creating a new distribution channel for NeoBanks Family Money by Verizon • In the US, Apply Pay extended to family accounts - parents can share Apple Card with their children and set spending limits to teach safe and smart financial habits. • Trend has picked up in India too, with players like FamPay, Juno, Obvy, Rapyd and Union Pay coming in.
  24. TAMPs for Wealth As A Service
  25. TAMP (Turnkey Asset Management Providers): Providing wealth management services as a service ● Platformization will allow investment management firms and advisors to unbundle their core competency or service offering ranging from ideation and research to distribution and execution, and offer them to customers seamlessly and cost-effectively. ● The limitations imposed by monolithic institutions no longer constrain a customer looking for a specific product or advisory. Instead, customers can access platforms that allow them to choose the investment product that meets their particular requirements.
  26. Companies that are creating APIs and software for wealth managers are gaining traction Source: Fintech Report Q4 2020, CB Insights, 2021 In a crowded marketplace, B2B FinTechs offered more stable and secure RoI compared with high-risk B2C startups during economic uncertainty
  27. Making investing stress-free • Start investing in less than 5 mins • Select simple, low-cost, diversified portfolios for your goals • Setup virtual* SIP, STP and SWP for any mutual fund • Consolidate your portfolios into a single unified view • Analyse your overall Asset Allocation across portfolios • Listen to best practices in investing from industry experts • Focus on your goals, lets us do the rest!!! An Initiative by glideinvest * Visit our FAQ page for more details
  28. Jaideep Tibrewala jtibrewala “Don't look for the needle in the haystack. Just buy the haystack!” John Bogle Founder of Vanguard