fintech the strategic space - meetupfiles.meetup.com/2243521/the fintech strategic space - edition 1...
TRANSCRIPT
Fintech the
Strategic Space
Cass 9th October 2012
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www.meetup.com/
IC Dowson William Garrity Associates Ltd
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Fintech – Old Value Chain
Consumer
Bank
Build Soc
Insurance
Co
Stockbroker
Asset
Manager
Pension
Fund
Insurance
Co
Asset
Manager
Hu
man
Inte
rmed
iata
tio
n
Employer
Enter the walled garden
© copyright IC Dowson William Garrity Associates Ltd
Fintech New Strategic Value Chain Entry at any node
Exchanges
Currency
Stock, p2p,
Spread
Asset Management
Self
Contracted
Robot
Trading
Identity &
Security
Transactions
Transaction
Generation
Mobile, Web,
Pad, ATM,
Branch, retailer,
In or out of Loop
OOL
Transactions
Account
Processing
Risk
Assurance
Insurance
Pension
Compliance
SaaS
Regulation
Price and
Product
Discovery
Financial
Education
Literacy
Account
Consolidation
of all value
Account
Holding
Branded &
Segmented
Funding
Platforms
Products
Out of Loop
Value Points
Game Crs Gifts
Facebook Crs
Loans
Cards Accounts
Peer to Peer
Money &
Value
Tranfers
Process SaaS,
PaaS
Expenses
Invoices
Personal
Financial
Management
mmentt
Soc Med Points Games News
© copyright IC Dowson William Garrity Associates Ltd
World Scale of Investment
Acquisition $3.6bn
37 Trans
Total Spend $10.7bn, 347 Transactions
USA, $6.6bn
61% 198 Trans
UK, $3.2bn 30%, 92 Trans
ROW $472m
14 Trans
EUR $327m
13 Trans
Canada $71m
6 Trans
Germany $59m
6 Trans
Investments 310 Trans $7.1bn
Type No Value $000
Payments 78 3,328,644
Process 80 1,983,215
Comply Identity Security
43 1,748,320
Retail Challenger Banks 7 985,434
Lending 53 839,005
Data & Information 31 768,160
Banking 8 355,012
Exchanges 34 304,959
Points Games Rewards 12 267,400
Weather Insurance 1 109,000
Total 347 10,689,149
© copyright IC Dowson William Garrity Associates Ltd
London
Founded $65,092
2% 16 Trans
Angel Seed
Funding $28,779
1% 31 Trans VC/PE
Funding, $940,181
29% 33 Trans
Corpor $202,000
6% 2 Trans
Acqs $1,114,7
00 35%
8 Trans
IPO $846,920
27% 2 Trans
Total $3,197m 92 Transactions
Name Sub Sector Total Monestise E & Mobile Cash 683,120 Wonga Lending 145,000 Zopa p2p 33,900 Euclid Opportunities Funding Platform 25,000 Tradeshift Process 24,000 Open Gamma Big Data 23,200 Funding Circle Funding Platform 20,000 Datasift Infor 14,700 Borro Lending 12,100 digitalvega Exchange 10,000 Currency Cloud FX Money transf 8,600 Tier-3 Compl 8,500 AI Hit Infor 5,500 Nutmeg Exchange 5,320 Acunu Big Data 5,000 Fixnetix Exchange 5,000 Gekko Global Markets Exchange 5,000 Smarttrade Exchange 5,000 Ratesetter p2p 4,800 Dcisions/ Investor Bee Infor 4,500 Ixaris E & Mobile Cash 4,500 EZBOB Funding Platform 3,920 MoBank Aggregator 3,600 miiCard Compl 3,370 IWOCA Funding Platform 2,400 Flattr Payments 2,080 Erply E & Mobile Cash 2,007 Handpoint E & Mobile Cash 2,000 i-Allow Compl 2,000 © sicopyright IC Dowson William Garrity Associates Ltd
Fintech Strategic Wheel
Compl, Identity Security
SaaS $16.3m
Payments $4.6m
Process & Processing
$28m
P2P $40.2
m
Big Data Open
Source $29.7m
Funding Platforms
$55.8m
Exchange $30.4m
Info $27.5
m
Lending $158m
Challenger Banks $821m
FX Money Trans $10m
Emoney Mobile
$692.7m
Aggregator $3.6m
PFM $0.6m
LONDON $1.92bn Investment
Notes: London Fintech Funding Table $1,236bn plus Monestise Plc
© Copyright IC Dowson William Garrity Associates Ltd
Londons Strategic
Gaps
Full E-Bank inside of Facebook & Twitter Fidor Bank AG
Aggregated Bank “SimpleBank”
Insurance –Empty Only one new model In USA Climate Corp Crop Insurance by Robot
Personal Financial Mangers
Put brains into them AI & Semantics complete FS product chain management
Lending & Process Money Supermarket ? SME’s Kabbage & Klarna. Ezbob & IWOCA
Markets & Exchanges
Plumbing – Digitalvega New Kinds of Markets Tesco Points into Gift Aid into Facebook crs into Textbooks
Peer to Peer Just started Funding Platforms We seem to be good At this
Strategic Space
© copyright IC Dowson William Garrity Associates Ltd
Crowdsourcing, e. g. with a user-community, that allows peer-to-peer
support, sharing of experiences and cooperation in order to solve financial
questions;
Crowdfunding, e. g. by getting paid by the bank for specific social
interactions within Fidor Bank Community;
User co-designed Products and user driven Prices, e. g.
Product suggestions within the community, „Zins-Consenus-Group“ within
Fidor Bank Community, „Like-Zins“, an interest rate that is directly connected
to the amount of Likes on Fidor Bank s Facebook profile.
Crowdfunding, via third party platforms such as startnext and others;
Peer to peer lending within FidorPay Account;
A global payment offer, that will allow „account to account“
payments or „account to cash pick up“.
Fidor Bank thinks different!
Fidor Bank = GLOBAL PEER TO PEER BANKING.
USA
Founded, $1.3m 4
Trans
Angel/Seed
Funding, $86m 1% 49 Trans
VC/PE Funding, $2.9bn,
44% 114 Trans
Corporate,$25m 1
Trans
IPO $1.1bn
17% 3 Trans
Acq, $2.5bn
38% 27 Trans
Total $6.6bn 198 transactions
Name Sub Sector Total
Life Lock Compl 876,000
Square E & Mobile Cash 341,000
Mint Aggregator 170,000
Virtual Piggy E & Mobile Cash 130,010
Yodlee Aggregator 116,000
The Climate Corporation Insurance 109,000
inComm E & Mobile Cash 100,000
OANDA FX Money transf 100,000
Lending Club p2p 95,200
Mitek Systems Process 79,580
Prosper p2p 74,700
Boku E & Mobile Cash 73,000
stripe E & Mobile Cash 56,000
On deck capital Lending 54,000
Kabbage Funding Platform 53,700
Cardlytics Points Games Rewards 51,000
Strandsfinance/ Strands L PFM 51,000
Edo Interactive Points Games Rewards 50,500
Learn Vest PFM 48,500
FreeMonee Points Games Rewards 44,000
mFoundry E & Mobile Cash 40,300
Threat Metrix Compl 36,200
Threatmetrix Compl 36,200
Secondmarket Exchange 34,200
Clairmail E & Mobile Cash 34,100
Kony E & Mobile Cash 34,100
Braintree E & Mobile Cash 34,000
Ping identity Compl 34,000
Finsphere Corp Compl 30,200
Capital access Network Lending 30,000
The Receivables Exchange Funding Platform 29,800
© copyright IC Dowson William Garrity Associates Ltd
USA Web 2.0 again
•Determined to globalise new value chain
•Some models now entering UK – following Mastercard, Visa & Amex
•Paypal-Ebay, Google, Facebook, Twitter
•UK Supermarket and Challenger Banks wrong model? •Could be a rerun of Web 2.0 – US Domination
Europe ROW
Canada $71m 15%
Trans 6
Europe ex
Germany
$327m 70%
31 Trans
Germany $44m
9% 5 Trans
Rest of World $28m 6%
12 Trans
54Transactions value $469m
Name Sub Sector Total Xero Process 434,000 klarna Lending 155,000
izettle E & Mobile Cash 46,700
TOM The order machine Exchange 40,000 eToro Exchange 33,900 Wave Accounting/ Vuru Process 30,500 Securekey Compl 30,000 Fidor Ebank 23,742
Sumup E & Mobile Cash 20,000
Service2Media Process 10,000 8 securities Exchange 10,000 Community Lend Lending 8,400 lenddo Lending 8,000 leetchi Payments 7,850 seculert Compl 5,350 2iQ Research Exchange 5,000 Ayondo Exchange 5,000 Stockpluse Exchange 5,000 Yavalu Exchange 5,000 Meniga PFM 4,000 BehavioSec Compl 2,020
© copyright IC Dowson William Garrity Associates Ltd
Success what does it look like Reg Name Sector Amount Buyer
EUR Virus Total Compl 15,000 Google
ROW Sky Technologies Process 10,000 kony
UK DataCash Process 520,000 Mastercard
Dataexplorers Big Data 350,000 Markit buyer Money Saving Expert Infor 139,200
Moneysupermarket.com
Goindustry DoveBid Process 31,000
Liquidity Services Inc USA
Corporate Pay E & Mobile Cash 27,500 Wright Express USA
Global Expense Process 23,000 Concur Technologies
Serverside Process 20,000 Gelmatto
Timetric Infor 4,000 Progressive Digital Media
USA Cash Edge - Popmoney E & Mobile Cash 465,000 Finserv
AuthenTec Compl 356,000 Apple
TxVia Payments 300,000 Google
Zong Payments 240,000 Ebay
Mortgagebot Process 231,800 D+H Davis & Henderson
Clairmail E & Mobile Cash 173,000 Monetise UK
Mint PFM 170,000 Intuit
PowerReviews Infor 151,000 Bazaarvoice
ID Analytics Compl 100,000 LifeLock
AisleBuyer E & Mobile Cash 90,000 Intuit
Truaxis (Bill Shrink) Points Games Rewards 50,000 Mastercard
Outright Process 30,000 Go Daddy
Venmo Payments 26,200 Braintree
UNX Exchange 25,000 Mantara
Chargesmart Payments 19,000 Veriphone
Feefighters Process 15,000 Groupon USA
Bankerstuff Compl 10,000 cBanc
Card.io E & Mobile Cash 10,000 Pay Pal
Easy2Comply/ Dynasec Compl 10,000 Checkpoint
Oflows Process 6,000 Andrea
Bankons Points Games Rewards 5,000 Capital One
Goalmine PFM 4,000 Rev Worldwide
PayLeap Payments 4,000 Acculynk
ORCA Inc Payments 2,000 Payz/ Ingk Labs
Social Picks Infor 2,000 SocialInSight
Skill-life PFM 500 Banc Vue
CashEdge/ Popmoney E & Mobile Cash 465 Fiserv
3,635,665
Please note some estimates have been used - illustrative values only
© copyright IC Dowson William Garrity Associates Ltd
Britain's Mobile E Bank its in Kenya 14.91 users £123m Rev