Jean Noel Georges - Global Programme Director - Frost & Sullivan

March 23th 2017

The Way Fintech are Already Disrupting

the Financial Services Ecosystem

Confidential to Finance Summit London 2017 2

The Need to Think Out of the BoxMost of industry leaders had to reinvent their mobile strategy


Digital Disruption in Financial ServicesA new set of services and functionalities coupled with a strong demand

ONLY ONLINE BANKS

BITCOIN CRYPTOCURRENCY

PERSONALIZED

SERVICESUN-SERVICED

UNDERSERVICED

AUTOMATION


Traditional Financial Services ApproachRestricted by accessibility, affordability and availability challenges

INCLUSIVITY

TIME TO MARKET

HIGH COSTS

LARGE ORGANIZATIONS

CUSTOMER EVOLUTIONLEGACY INFRASTRUCTURE

REGULATIONS/ COMPLIANCESILOED STRUCTURE


Is Fintech the Perfect Answer to Drive the Market?Strong investments and a far west ecosystem

LENDING PAYMENT

COMPLIANCE

& REGULATION

REMITTANCE

WEALTH/ ASSET MANAGEMENT

INSURANCE

BANKING

INVESTORS

* This is an illustrative list Source: Frost & Sullivan


Digital Banking: Technology Across Functions The way to enhance efficiency and effectiveness

FINTECH:

APPLICATIONS

ACROSS BANKING

FUNCTIONS,

EUROPE, 2016

DIGITAL

BANK

Sales: New Client

Acquisition

Marketing: New

Services & Products

Transactions:

Transfer / Withdrawal

Information: Receiving

and Sending

CRM: Interaction, Complaint

Resolution

• Online account opening

• Uploading documents online

• Smart contracts

• Authentication using mobile phone

• Relevant and customized products

and services suggestions

• Marketing messages on preferred

channels

• Online and mobile transfers

• Digital branches

• Secure environment

• Real time data/information

sharing

• Online account/status checking

• Chatbots

• Social Media

FUNCTIONS OUTCOMES


Strong Authentication is Key for SuccessMobile services need to comply with security standards


Big Data & Analytics a Nice Concept to Leverage MobileDerive smart insights from data to impact business outcomes


AI & ML To Enhance Consumer ExperienceReduce costs, increase efficiency and enable fraud detection


Payments Appear as the Most Exciting AreaPayments based on mobile is disrupting the existing market

FINTECH: USERS PERCEPTIONS AND ADOPTION TRENDS OF PAYMENT OPTIONS, EUROPE, 2016

41%47%SMARTPHONE OR TABLET USERS

THAT BANK ON-THE-GO IN EUROPE

SMARTPHONE OR TABLET USERS THAT

HAVE USED A MOBILE PAYMENT APP 33%40%

SMARTPHONE OR TABLET

USERS’ TRUSTED

PROVIDERS OF MOBILE

PAYMENT APPS84%

5%

11%

75%

11%

15%


Business Models Impacts per TechnologiesA big change from global services to ultra personalization approach

• Challenger banks host customer

records and functions

• Banks able to provide payment

infrastructures to other companies

leveraging cloud

• Better product penetration and wider

customer base

• Enhances agility and responsiveness

• Lower risk and faster services to

customers

• Increases inclusiveness,

transactional safety and detection of

fraud

• New market sub-segments such as

payment of tuition fees connects

banks and students

• Decentralization of business model

• Role of intermediaries will reduce

• Innovations target specific areas such

as travel insurance

• Enable automated processes from

detection of damage up to payments.

• Catering to new market segments of

unbanked and uninsured

• Accessing peer-to-peer models

• Reaching out to consumers through

multiple channels with less

dependence on branches

CLOUD

COMPUTING

BIG DATA &

ANALYTICS

IOT

AI & ML

BLOCK

CHAIN


What Next, What the Market is doing?The urgent need to be in the right train


Jean-Noël Georges

Global Program Director

Frost & Sullivan

Direct : 06-27-61-21-39

Email : [email protected]