the fintech revolution and the future of banking
TRANSCRIPT
The Fintech Revolution
www.nikolasbadminton.com
Sisyphus & skipping rocks
Banking vs. Fintech
Software is eating the world…
2007
2008
“Mobile is eating the world.”
Benedict Evans, Andreessen Horowitz
More people on earth have access to cell phones than toilets.
Out of the world's estimated 7 billion people, 6 billion have access to mobile phones.
Source: United Nations, 2015
1/3 have smartphones
Source: http://www.slideshare.net/a16z/mobile-is-eating-the-world-40841467
2 to 3x more smartphones than PCs by 2020
Personal Taken everywhere Frictionless access Sensors, cameras Location Payment Social platform Much easier to use
10x the opportunity
Mobile leverageIncreased sophistication is as important as scale
X =
Millennials • 53% see no difference between banks. • 71% would rather go to the dentist than listen
to what their bank is saying. • 1 in 3 are open to switching banks in the next
90 days. • 33% believe they won’t need a bank at all.
Source: http://www.millennialdisruptionindex.com/ and http://time.com/40909/why-millennials-would-choose-a-root-canal-over-listening-to-a-banker/
Innovation is accelerating
Digital Wallet Solutions
“More than a third of early adopters more or less say that they “rarely” use it anymore. And the percentage of those users who say they use it every time they can, has fallen by 50 percent since launch.”
PYMNTS.com
http://www.pymnts.com/news/mobile-payments/2016/apple-pay-adoption-usage-2016/
Alternative Card Networks
“I think many of the big incumbents right now will die. They have not kept up to date and they are technologically bankrupt.”
Tom Blomfield CEO Monzo
P2P Foreign Exchange Marketplaces
P2P Insurance & Social Good
?
Gamification in Banking
Cryptocurrencies
“It was the best of times, it was the worst of times…”
Charles Dickens A Tale of Two Cities
Anonymity & security Financial Inclusion
Reduced cost Flexibility
Anonymity & security Crime
Money laundering Terrorist funding
“The nation’s largest bank has been testing the program in recent months to move U.S. dollars for about 2,200 clients between the two financial centers using a version of the “blockchain” technology that underpins bitcoin.”
Daniel Pinto, J.P. Morgan
http://www.wsj.com/articles/one-place-j-p-morgan-is-boosting-spending-fintech-1456172040
X
Moving money across borders using path-finding algorithms
Source: http://fortune.com/2016/07/10/wall-street-blockchain-technology-banking/
http://www.wsj.com/articles/one-place-j-p-morgan-is-boosting-spending-fintech-1456172040
“This could disrupt monetary policy.”
Christine LaGarde IMF Managing Director
Source: https://www.youtube.com/watch?v=AsetntXCPRQ
TheNew Power
$446bn
$608bn
$541bn$373bn
$255bn
$2.2 Trillion
Source:www.millennialdisruptionindex.com/wp-content/uploads/2014/02/MDI_Final.pdf
“73% of Millennials would be more excited about a new offering from Google, Apple, Amazon, PayPal, or Square than from their own nationwide bank.”
Millennial Disruption Index
https://www.bloomberg.com/gadfly/articles/2016-06-28/drink-up-quick-alibaba-the-pboc-wants-your-punch-bowl
Yu'e Bao
CAD$152bn
“It's now moving directly into banking, after starting online micro-lender MYbank last year…Its issuance of 30 billion yuan of loans as of January has been enough to attract the attention of regulators. That growth may now be reeled back.”
Bloomberg
https://www.bloomberg.com/gadfly/articles/2016-06-28/drink-up-quick-alibaba-the-pboc-wants-your-punch-bowl
2017 to 2025
1Banking and Fintech partnerships will keep innovation pushing forward both inside and outside of traditional banks.
2Internal tech incubators will innovate without the restrictions of policy and normal business-as-usual activities.
3Employees and customers will be involved in regular design charrettes for new banking solutions.
4 Consolidation of fintech companies into ‘Super-Fintechs’, lead by tech giants.
5 Developers will become a more valuable human asset than Traders and Brokers.
But, what about the
future future?
Disruption + progress is inevitable.
The Fintech Revolution
www.nikolasbadminton.com