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Fintech of TechfinGaat innovatie ons helpen?
FFP Congres, Paul Koetsier—4 oktober 2018
2© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
3© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Fintech or Techfin?Fintech and Techfin: a contraction of the words ‘Financial’ and ‘Technology’
Techfin, starts with technology and wonders how to use it to exchange value which TechFin enthousiasts claim is different to
Fintech, which starts with finance and uses technology to do it faster and cheaper. TechFin is a very different view of the world, and I urge you all to take a closer look.
Source: Chris Skinner, the Finanser blog, June 2018
Source: World Economic Forum, Beyond Fintech: A Pragmatic Assessment Of Disruptive Potential In Financial Services, August 2017
Emerging Ecosystems
B2BPartnerships
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The size of Fintech expressed in investments
However, this is not the complete view
5© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Data related technology is key…Emerging fintech technologies of most interest, next 3 years — all respondents
Analytics and
big data
API Robotics/ robo-
advisors
AI Blockchain IoT
% ranked highest in interest % ranked second highest in interest
Source: KPMG International global fintech survey, 2017
67%
55%
24% 24%16% 14%
6© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
… to enhance the customer experience
Ranking of fintech strategy objectives — by industryBanking Insurance Asset management
Enhance customer experience
Transform current capabilities
Deliver cost efficiencies
Protect core business against threats
Expand into new lines of business
Develop new quantitative investment strategies based on AI
% ranked highest importance % ranked second highest importance
Source: KPMG International global fintech survey,2017
75%
48%
31%
22%
23%
86%
47%
19%
26%
19%
1% 5%
67%
57%
14%
14%
33%
14%
7© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Dutch Fintech overview
88
‘’PSD2 is the biggest
revolution in banking
since 700 years’’Senior Banker
9© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
PSD2 Survey results (2017)
87%expects that the
PSD2 will meet one of its objectives ‘to
stimulate innovation’
80%expects that the
introduction of PSD2 stimulates or
accelerates a shift to ‘Open Banking’
73%of the respondents sees privacy as one
of the three main risk categories
60%of the respondents
sees misuse of consent as a main
concern
60%expect 100 – 1,000
TPP license applications in 2018
& 2019 across Europe
40%expects most
competition from BigTech platforms
10© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Scenarios for the future
Source: AFM 2015
Direct distribution
Open market
Tech mono-or oligopoly
“Fin-platform”
“Fragmentation” “Traditional evolution”
“Tech-bank”
Intermediated distribution
11© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
The new and larger playground
Bank1production
Banknproduction
Bank1distribution
Bankndistribution
Banking
Source: KPMG Open Banking Framework
Aggregators
Beyond banking
Other services
Platforms
The Financial Planning battleground – disrupted by the crowd?
12© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
An impression of future functionalityThe basic offering…
Basic or must have services in the platform include insight in:
— Investment account balance —Projections of investment
targets—Current account balances
overview and transaction history (account information services)
—Payments initiation services to shift funds
—Smooth onboarding
Insight in current and projected financial position
MATCH MAKER
…the advanced…
Advanced features to support external and open financial services:
—Other external accounts (e.g. savings) balances
—Projections for saving targets and extended wealth management (pensions; pillars II - IV)
—Life changing events triggers —Real time alerts to change
the portfolio
Advanced features include external connections
ORCHESTRATOR
…and the differentiators
Differentiated features that make you stand apart from your competitors:
—Robotic advice by using cognitive learning algorithms
—Advice puts the customer first; no “own brands first”
—Broad distribution, fit for purpose to customer (app, social, online)
Features that bring quantifiable benefits to customers in an empathic
wayPORTFOLIO ADVISOR
13© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Fintech in financial planning – digital evolutionA RT
03
04
05
01
INVENTARISATION
Digital 2018 – 2025: 18% 76%
02ANALYSIS
Digital 2018 – 2025: 34% 62%
ADVICE
Digital 2018 – 2025: 20% 42%
PRODUCTCOMPARISON & MEDIATION
Digital 2018 – 2025: ~50% ~75%
AFTERCARE
Digital 2018 – 2025: 12% 60%Source: FPTech, FFP, Software supplier scores, 2018
14© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Fintech in financial planning benefits and concerns?
Compliance and disclosure
Real-time big data
Scenario planning
Bias, conflicts and emotions
Greater accuracy
Greater efficiency
Engaging clients
More empowered and financially literate clients
Source: FPSB, 2016
Top 10 Fintech Issues for Consideration by Regulators/Legislators
Response Percent
1. Lack of understanding of customer65%
2. Ability to generate suitablerecommendations 41%
3. Potential conflicts of interest40%
4. Cybersecurity concerns37%
5. Regulators understanding complexity32%
6. Inadequate disclosure32%
7. How execution-only platforms vetclients 26%
8. Inadequate competence/supervision 26%
9. Inadequate testing of the advice25%
10. Inadequate training or competency of developers 24%
15© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.
Key take-aways
Diverse
Open
KPMG on social media KPMG app
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© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.