Download - Fintech Overview - Bekkozha Muslimov
Fintech Overview and Trends2 April 2016
‘Bekkozha Muslimov, Investment Director at Blue Wire Capital
Fintech Conference at Cass Business School – “Investment Landscape in Fintech”
About Blue Wire CapitalFocus:
Portfolio:
Team:
Fintech investments:
About myself:• Extensive experience in M&A advisory and corporate M&A
for FTSE100 company;• MBA from London Business School
Conference Attendance: Leading Indicator
Status QuoInnovation in Financial Services:
ATM in 1960s
Online banking in 1990s
Securitizations
CDOs
Credit Default Swaps
OTC Derivatives
Perfect StormFive conditions for Change:
Loss of trust
Expectations of better
The rise of millennials
New distribution channels shaped by technologies
Regulation conducive to innovation
Loss of Trust
Sources: filings by regulators and other government authorities, data from banks, and estimates of US litigation costs by analysts at KBW
Expectations of Better
Sources: Temkin Group Q3 2013, Consumer Benchmark Survey
The Rise of Millennials84% say they are influenced by user generated content
60% say financial products are not targeted at them
33% say they would not need a bank in five years
Sources: Accenture
New Distribution Channels
Regulation • Systemic failure in banking sector in 2008
• Increased governmental regulation: Dodd-Frank, Volcker, EMIR, Basel III
• Focus on separation of retail and investment banking businesses
• In UK regulation is conducive to innovation:
• PRA (former FSA) launched and dropped some of requirements for new banking entrants and introduced “fast-track” licensing regime
• FCA set up Project Innovate
• The number of registered e-money providers has more than doubled in the last two years from 38 to 79
• A new Payment Systems regulator
• Government set up “New Bank Start-Up Unit”
Death by a thousand cutsWorry less about these competitors
Worry about these emerging peers
Unbundling of a bank
TechnologyPower of Disruptive Technology: Marketplace Lending as an example:
Source: Clay Cristensen Disruptive Innovation Framework
Bank Response
Source: The Pulse of Fintech, KMPG and CB Insights
Acquireo Investments into start-ups
o BBVA acquired Helsinki-based Holvi
Partnero Citigroup partner with Lending club
Co-Opto Barclays set-up incubator run by
Techstars
Competeo Charles Schwab set-up own algo
trading to compete with Wealthfront
Bank Investments into VC-backed fintech start-ups
Global Fintech Financing
Source: The Pulse of Fintech, KMPG and CB Insights
Key Verticals:1. Lending
2. Payments/Billing
3. Personal finance and asset management
4. Money transfer/remittance
5. Blockchain/bitcoin
6. Capital markets
7. Crowdfunding
8. Insurance
Global Largest Fintech Deals
Source: The Pulse of Fintech, KMPG and CB Insights
$7.7B $4.5B$1.5BTotal
14 of Fintech Unicorns in Payments and Lending
Source: The Pulse of Fintech, KMPG and CB Insights
10 Largest European Fintech Rounds
Source: The Pulse of Fintech, KMPG and CB Insights
Top Cities
London - 50 Deals/$744M
Hamburg - 5 Deals/$110M
Berlin – 10 Deals/$79M