1、1 F I N T E C H D I S R U P T O R S 2 0 1 9 REMOVING ROADBLOCKS THE NEW ROAD OF FINTECH F I N T E C H S N E X T W A V E 2 M E T H O D O L O G Y Fintech Disruptors Report EMEA 2018, in its fourth year, is a temperature check on the status of digital financial services and the role of traditional fina

2、ncial institutions and fintechs in providing consumers with secure, easily accessible and value-for- money services and products. The report, carried out by MagnaCarta includes the results of a survey of 5,000 professionals within banking, financial services and fintech across Europe, the Middle Eas

3、t and Africa. In addition, interviews have been conducted with 24 experts across the region. 1 C O N T E N T S Sponsor Introduction 2 Executive Summary 3 BUILDING BLOCKS Relevance 6 Case study: Revolut 10 Openness 11 Case study: Metro Bank 15 Automation 16 Case study: Santander UK 20 Data 21 Case st

4、udy: Klarna 26 Interviewees 28 Imprint 29 “IN THE PAST, A SHARED SUPPLY CHAIN HAS BEEN CRITICALLY OVERLOOKED BY BANKS, WHOSE SPEND WOULD RATHER GO TOWARDS CONSULTING HOUSES AND VENDOR SOLUTIONS. THIS IS THE FIRST TIME THAT WERE DEVELOPING A SUPPLY CHAIN OF FINTECHS THAT ARE PROVIDING SOLUTIONS THAT

5、CAN EITHER PLUG INTO THE PRODUCTS THAT WE ARE DEVELOPING, OR THAT WE CAN PURCHASE AND INCORPORATE INTO OUR CLIENT VALUE PROPOSITIONS.” Liesl Bebb-McKay, Head of the FOUNDeRY, Rand Merchant Bank 2 S P O N S O R I N T R O D U C T I O N In 2018 the term Fintech finally entered the dictionary. The term

6、is part of our everyday industry speak but it is now in the wider lexicon. The definition is: “prod- ucts and companies that employ newly developed digital and online technologies in the banking and financial services industries” whichof course is factually correct. However, in my opinion, it is lac

7、king a key dimension, what does Fintech actually solve? What does it contribute to society? Why does it actually matter to consumers? Technology is a tool but not an end in itself. That is why at Klarna, we do not start with technology, but first focus on the question “what are we solving?” It is on

8、 this point where we at Klarna believe the real journey has only just begun. Never before have people had this much technology at their fingertips. Despite access to faster internet, better devices and smarter services, people actually have increasing complexity in their lives and find it harder to

9、solve their daily time equation. This is especially true when it comes to handling money and managing purchases. People now spend more and more time worrying and admin- istering their finances and less time doing what they love. We therefore need to eliminate this unneces- sary friction and complexi

10、ty in an increasingly bureaucratic, slow and impersonal world. That means offering services that help people seamlessly pay, finance, manage and keep track of their purchases. It is my belief that we as an industry will have failed in many ways if we cannot have a meaningful impact in empowering con

11、sumers to manage their daily financial life. In the context of this report, the four elements of relevance, openness, automation and data identified as critical to the future development of fintech are also fundamental to building consumer orientated solutions. This is not coincidental. The consumer

12、 will simply no longer be forgiving when their bank or service provider does not leverage the insights available to make their engagement person- alised, intelligent and simple. This is not about betting on future prod- ucts but rather future behaviours. There is also a clear maturation of views on

13、openness and the historical lines between competitors, partners and customers are blurring. The overall strength of the ecosystem and partnerships will continue to be of utmost importance, not least as the value in specialism becomes increasingly clear. Such is the breadth and complexity of technolo

14、gy as well as market and consumer demands across sectors. It is obvious, no one entity can adequately fulfill all needs to everyone at the level required. We will all need each other. Ultimately, we at Klarna believe that those who have the courage to act and change things based on customer needs ar

15、e going to be the ones that are successful. I hope you will enjoy this years report and gain some new and valu- able insights into how the market will evolve in the coming year. Happy reading, Sebastian Siemiatkowski BET ON FUTURE BEHAVIOURS OVER PRODUCTS “THOSE WHO HAVE THE COURAGE TO ACT AND CHANG

16、E THINGS BASED ON CUSTOMER NEEDS ARE GOING TO BE THE ONES THAT ARE SUCCESSFUL.” Sebastian Siemiatkowski CEO, Klarna 3 A decade after the Great Recession a lot has changed in financial services. But much has also stayed the same. Not including regulator-enforced bank rescues, league tables of the lar

17、gest financial services organi- sations in Europe, and across the Middle East and Africa, are much the same as before the crash. Despite a dent to revenues, and share prices between 2008 and 2010, global bank market capitali- sation has grown nearly 50% in the years since1. Trust in banking has also

18、 bounced back UK consumers trust in banks is at the same level as high street retailers2. At a time when the number of bank branches in Europe has declined by a fifth, and the number of banks by nearly a quarter3, since 2008. But all is not quite as it seems. As banks have declined, numbers of new e

19、ntrant fintechs have swelled estimated to be anywhere between 5,000 and 12,000 depending on your definition. Including several thousand across Europe, the Middle East and Africa4. Up the scale Plenty have gone on to become scale players. From mobile money providers in Africa a global pioneer to adva

20、nced payments services and challenger banks in Europe, fintech as a sector and a mindset has proved its here to stay. Its also proved its customer-cen- tred, data-rich operational model is more relevant than banks in a digital age. Its a model where relentless focus on smooth customer expe- riences

21、triumphs over traditional industry channel or distribution metrics. And where the best pros- pects of success are in enabling commerce in its broadest sense over the selling of margin-first products. Fintechs no legacy advantage is no longer a given. Progress will be determined by an ability to resp

22、ond to new technologies and emerging regulations and to scale the organi- sation accordingly. Whether the question is where to draw the line between data use and abuse, or how to scale an organisation for inevitable change, fintechs will struggle as much as banks to provide the answers. A failure to

23、 do so could quickly turn the building blocks of the new road into potentially fatal roadblocks. E X E C U T I V E S U M M A R Y FAIR GAME OR FAIR PLAY? IN THE DECADE AHEAD THE SUCCESS OF FINTECHS AND BANKS WILL DEPEND ON THEIR ABILITY TO PROVIDE ANSWERS TO QUESTIONS POSED BY FOUR FOUNDATIONAL BUILD

24、ING BLOCKS. “IN THE NEXT DECADE RELENTLESS FOCUS ON SMOOTH CUSTOMER EXPERIENCES WILL TRIUMPH OVER TRADITIONAL CHANNEL OR DISTRIBUTION METRICS AS A DETERMINANT OF SUCCESS.” Fintech Disruptors 2019 4 4 building blocks In a break with tradition, this years research aban- dons a now arbitrary conflict b

25、etween fintech innovators and incumbent banks. Four years into the fintech journey, the distinction between them is no longer so helpful, particularly as larger technology firms trying to drive their own re-positioning efforts are also calling themselves fintechs. Mainly though its because rapid adv

26、ances in technology like artificial intelligence, and new regu- lations on data and data-sharing, are opening a new chapter for regulators as much as for innovators and traditional institutions. Its a chapter defined by the questions it poses - and to which no side has the answers. As the report exp

27、lains, all sides will have to work together to come up with them. When it comes to data in particular, confronting opposing perspectives of its value, of how to use it and who should own it could grow the market for financial services at the same time as it improves customer safety. This report iden

28、tifies four building blocks of a new fintech road. Although not individually new, a combination of economic and regulatory pressures, and accelerating technological change, will sharpen the attention of providers of all sizes on them in the decade ahead. They are defined as follows: 1 Banks in the c

29、hanging world of financial intermediation, McKinsey regulators cannot be expected to be equipped for the task ahead without new types of skills and comprehensive consultation.” explains Martin McCann, chief executive at Trade Ledger. Thinking in circles In some areas this is already happening, “Its

30、impor- tant to have the right regulation in place. Theres been tremendous progress, but things still need to happen. For example, we need a clear taxonomy for crypto assets what do we class as a security or a commodity? Theres still a lot of education needed,” explains Marieke Flament, chief marketi

31、ng officer at crypto payment and investment platform Circle. Government and regulators are getting better at QUESTIONS DOWN THE ROAD Fintechs and banks need to ask themselves - Who are we? Who do I want to work with? What is the best partnership model to deepen digitisation and drive customer adopti

32、on? What is the role of regulators in setting digital standards and enabling innovative businesses? 14 1 Fidor-Bank-to-separate-from-BCPE-after-short-marriage 2 General Data Protection Regulation, May 2018, ec.europa.eu/ commission/priorities/justice-and-fundamental-rights/data- protection/2018-refo

33、rm-eu-data-protection-rules_en 3 The contactless revolution ten years on, Visa, September 2017 https:/ ten-years-on working with the industry to build an ecosystem that affords protection without preventing innovation, “The speed at which things are changing has caused governments to start asking qu

34、estions about certain products and services. And where such regulatory uncertainty exists, it makes investors hesitant and hinders innovation,” explains Teana Baker-Taylor, advisory council member at Global Digital Finance, a cryptocurrency trade association. With rules on open banking and PSD2 stil

35、l fresh, the open mindset is only just beginning to gain currency. No pun intended. A little over half of banks and fintechs have a defined strategy for their busi- ness in the wake of PSD2. Nearly one in five appear to have no specific plan in place at all. Slow adoption of the new rules of the ope

36、n ecosystem applies to regulators themselves as much as financial service providers. Despite a global trend toward protectionism and trade barriers, in the digital realm regulations are only effective if coordinated across markets, industries or regions. As automation and IoT technologies advance in

37、 the years to come, harmonisation will become more important. “AWS Amazon Web Services or Azure are prohib- ited in France for use in banking but the banks that are using them there, such as N26 or Revolut, cant be stopped. Its a matter of time before all these barriers are broken,” says Five Degree

38、s Mr Hohmann. Linear competition has come full circle. PSD2 - WHICH ACTIVITIES ARE IN DEVELOPMENT? C H A R T 8 . AND WHAT ARE THE BIGGEST OPPORTUNITIES? C H A R T 9 Defi ning value proposition Developing use cases Defi ning a new customer journey Selecting partners Defi ning customer segments Prepar

39、ing communication strategies Multi-account management Account aggregation Identifi cation and authorisation services Product cross-selling Peer to peer payments Account to account payments 56% 45% 52% 49% 38% 30% 26% 40% 35% 25% 24% 22% 15 UK-based Metro Bank was the first new high street bank to be

40、 launched in over 100 years and paved the way for a new line of “challenger” banks who have brought competition into retail and business banking with over 1.5 million UK customer accounts. While launched on traditional retail banking lines with a small number of branches, it sees much opportunity in

41、 building its digital offering, and is keen to capitalise on open banking and their API developer portal that launched in June 2018. Mindset View open banking as an opportunity that aligns with the banks inception as a new bank created to challenge the existing marketplace. Implementation Partnered

42、with Apigee (part of Google) in 2017 to build the API portal, sandbox and registration process. Explored internal opportunities to drive efficiencies including working with the banks partners to overhaul existing processes Sought insight from FinTechs on the banks open banking layer and the differen

43、t areas of financial services that it might be applied to Roadmap in place to deliver PSD2 requirements (e.g. SCA) throughout 2019. Alex Park is Director of Digital, Metro Bank Results Within three days of the launch of the API portal in June 2018, five developers signed up. At time of publication,

44、the bank reports that a number of third party developers have signed up on their developer portal from a cross section of the financial services industry. Next challenges Finding ways to create value in new and innovative ways by extending the scope and reach of our APIs. For example, enabling integ

45、rations with other areas of financial services such as insurance and pensions. Staying up to date with development of open banking standards to be ready to take advantage of emerging opportunities. Right-sizing bank infrastructure, including streamlining internal processes, to enable bespoke integra

46、tions for in-demand services as the market matures. M E T R O B A N K : D I G I T A L D R I F T 16 A circular financial services ecosystem requires the right culture. It also needs the right tools. Coupled with the technical archi- tecture that can adapt as processing power grows and patterns of dem

47、and change. But with reduced ability to predict the future with any degree of certainty how can providers zero-knowledge proof their business for a world where todays opportuni- ties can quickly become tomorrows obstacles? “Theres a risk that someone can offer consumers a service theyve never had be

48、fore that could replace you almost overnight. Your offering will seem archaic, and you simply cant plan ahead for that” says Mr Fredericks at IndieFin. Sprinting backwards In the survey half the top six predicted investment areas for 2019 havent featured meaningfully in previous editions. And until

49、very recently any talk of AI was kept to science fiction thrillers. Rapid technological change is not exclusive to financial services. All industries are now at its mercy to some degree. The specific problem for fintechs as much as banks is that backbone services like finance now cross paths with other indus- tries in increasingly sophisticated ways. To the point that providers are becoming invisible1. While greater automation might be smoother for the customer, its making financial services like payments become their own