fintech, automation and the future of work

FinTech, Automation and the Future of Work

Claire Ingram

Stockholm School of Economics

[email protected]

@Claire_EBI

slides.claireingram.se

1st Industrial Revolution

2nd Industrial Revolution

3rd Industrial Revolution

4th Industrial Revolution

Complexity

Highly skilled (service-focused)

Need for new skills and new tools

Sweden well-positioned

Three patterns emerging

• The use of platforms for market matching

• The use of automation to automate simple tasks

• Small, specialised upstarts

• All reliant on connectivity

The “peer-to-peer exchange of tangible and intangible slack (or potentially slack) resources, including information, in both global and local contexts”.

(Felländer, Ingram & Teigland, 2015)

Sharing Economy

Uber AirBnB

Crowdfunding growth 2012-2015

34bn USD (est.)

• Reduces transaction costs (incl. cost of“finding” a match)

http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/

• Bargaining costs

• Policing and enforcement costs

How do platforms work?

KnCMiner, 2015

19UJAQMPqxDqhkppwzd1YFtfTbLiX3rjJ9

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How the Blockchain works

Drawing significant backing

19Inspiration from CB Insights, SEB base webpage slightly modified to make more room

Moving in on banking territory

66.6m USDIntel, Zouk Capital,

Creandum, Dawn Capital, Index Ventures, MCI Capital, Northzone

15.0m USDAccel, Creandum, GP

Bullhound, Martin Wattin

10.0m USDNorthzone, White

Star Capital

1.9m USDUndisclosed

1.4m USDNorthzone,

Undisclosed Angels

0.6m USDPeter Gyllenhammar

0.6m USDNFT Ventures

0.5m USDAndreas Bonnier

0.7m USDCrowdfunding,

Techstars

Undisclosed UndisclosedAggregate Media

UndisclosedNFT Ventures


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38.0m USDKinnevik, LeapFrog

0.7m USDNFT Ventures

0.5m USDKarl Johan Persson

1.2m USDStaffan Persson, Thord

Wilkne


137.7m USD in 2015 alone

212015 estimate based on 2014 growth rates.

m USD

658.5m USDInvested over the past 5 years

>14bn SEK Estimated 2015 Revenue for Stockholm Fintechs

>5800Estimated 2015 Employment for Stockholm Fintechs

181.6

55.4

17.6

266.2

137.7

2011 2012 2013 2014 2015

Investments in Stockholm Fintech Companies

Part of a long-term pattern

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10

20

30

40

50

60

70

80

90

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Payments

Other FinTech

Lending

Trading and Banking Tech

Wealth Management

Crypto Currency

Crowdfunding

Acquired companies included in these totals

Fintech growth by segment

• Payment services directive 2 passed on January 12

• Must be included in domestic legislation in 2 years

• Among other things, requires that banks open up, operate as APIs

• Intention is to improve consumer experience

• Some precedent (e.g. Tink), but no longer discretionary

• What does this mean for FinTech?

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PSD2 driving future growth

Even more possibilities

The rise of Augmented Reality

Graphic from: http://www.i-scoop.eu/internet-of-things/

Questions?

Claire IngramStockholm School of Economics

[email protected]@Claire_EBIslides.claireingram.se

fintech, automation and the future of work

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