FinTech: Digital Innovation in the Financial Industry

FinTech : Digital Innovation
in the Financial Industry
JANUARY 7, 2016 – 7:00PM
Jean-Michel Pailhon

Forewords
2“FinTech : Digital Innovation in the Financial Industry” (07/01/2016) © Jean-Michel Pailhon (jmpailhon_pro@yahoo.fr)

Today’s Agenda (1/2)
What you will learn:
What is FinTech
Why it works
Where it works
How it might impact you

Today’s Agenda (2/2)
What you will not learn:
 How to spot a promising FinTech
project
 How to launch a (successful?)
FinTech startup
That’s a different workshop!

FinTech History (1/2)
English term coined in 2004 (American Banker’s "The FinTech
100 ranking“), then…

FinTech History (2/2)
… Popularized in 2013/14 by the first ‘successes’ (in terms
of funding, exit or publicity) for FinTech startups (e.g.
Transferwise and Lending Club)

FinTech Definition (1/2)
Contraction of ‘Financial’ + ‘Technology’

FinTech Definition (2/2)
 FinTech is a new value proposition applied to financial services:
 new offering of financial products / services, and/or
 new processes, and/or
 new business models, and
 the intensive use of technology (SaaS, cloud, mobile, metadata, etc.)

FinTech Scope
Capital
Markets
Forex
Payments and
Money
Transfer
Financing
(crowdfunding
/ lending)
Personal
Finance
Wealth / Asset
Management
Cryptocurrenci
es
Data and
Analytics
Security
Compliance
Real EstateInsurance
FinTech Sub-
Sectors
(extract)

FinServ Co’s, ‘Old’ FinTech, ‘New’ FinTech
12
Source: affentranger associates (aasa)
“FinTech : Digital Innovation in the Financial Industry” (07/01/2016) © Jean-Michel Pailhon (jmpailhon_pro@yahoo.fr)

Fintech: Not So « New » (1/2)
13
The (19)80’s 1995-2000 2010-NOW

Fintech: Not So « New » (2/2)
14
The (19)80’s 1995-2000 2010-NOW

FinTech: Why NOW? (1/3)

FinTech: Why They’re Doing It Differently?

FinTech: How They’re Doing It Differently?
http://www.genbeta.com/actualidad/deben-los-bancos-temer-al-fintech

The Real Threat of FinTech: “Unbundling” The Bank (1/2)

The Real Threat of FinTech: “Unbundling” The Bank (2/2)
"Unbundling" = the "process of breaking apart something into smaller parts"

FinTech: A Recent Startup Ecosystem

Growth in FinTech? Bubble or Real Growth Potential? (1/2)
26
x7

Growth in FinTech? Bubble or Real Growth Potential? (2/2)
27
x27
x3000

Funding Activity in FinTech Explodes!

Largest Funding of FinTech Startups in 2015
Source: PitchBook Platform

Notable FinTech Exits in 2014/15
Source: PitchBook Platform

Another Proof of Concept? Follow the Smart ‘Guys’!

Where: International
landscape of FinTech startups

FinTech Investment Jan. 2010 – June 2015 (World)

French FinTech Landscape by Octo Technology

Don’t ask what FinTech can
do for you…
35

Few Examples of FinTech Entrepreneurs (1/4)
Source: Wikipédia

Source: Wikipédia

Source: LinkedIn

Being a FinTech Entrepreneur Can Pay Off
40
http://tech.co/fintech-entrepreneur-payoff-2015-12
vs.

Further Reading
 "La (French) FinTech Connection" (Jean-Michel Pailhon)
 "Fintech strategic review" by Jean-Michel Pailhon (SlideShare)
 FinTech : concurrents ou partenaires - OCTO Technology
 "Le FinTech cannibalisent la banque" (Octo Technology)
 Groupe « Fintechers France » sur Linkedin
 Twitter
 La Banque, Reflet d'un Monde en Train de Naître (Octobre 2015, Athling)
 http://www.francefintech.org/
 https://www.cbinsights.com/blog/category/industry/fin-tech-industry/

Fintech News Sites and Blogs (Sample)
C'est pas mon idée !
L'innovation dans les services
financiers, par Patrice Bernard

Thanks for Your Attention! Questions?
44
“It’s easy to ask a difficult question.”
(Raymond Barre)

Further Questions? Feel Free To Contact Me!
Jean-Michel Pailhon
+33 (0)7 82 13 07 05
jmpailhon_pro@yahoo.fr
linkedin.com/in/jeanmichelpailhon
45
Formerly within the Euronext Group (2001-16), Jean-Michel PAILHON, 39, is an expert in
capital markets infrastructure and issues related to corporate finance.
Jean-Michel started his career in 2001 as a credit analyst. He was then front-office manager in
the treasury and financing department, then M&A analyst in the corporate finance
department of the group. In 2007, he joined the Listing department of NYSE Euronext as a
project manager and head of research where he assisted the EMEA Executive Director of the
Listing Department in the implementation of the group strategy. He took a major role in the
build-up of the Life Sciences (biotech and medtech) franchise for the European listing business
(80+ IPOs to date) and in the mission "Facilitating market access to financing for SMEs“ whose
report (presented to Ms. Christine Lagarde, then French Minister of Finance in 2009) was
instrumental in creating EnterNext and led to France position on the EU Capital Markets (EU).
Jean-Michel graduated from Coventry University (Bachelor of Science) and Montpellier
Business School (Master in Finance).

The 100 Largest FinTech Companies
47
http://www.williammills.com/blog/2013-fintech-100-rankings-released/
1. FIS U.S.
2. Tata Consultancy Services India
3. Fiserv, Inc. U.S.
4. NCR Corporation U.S.
5. Cognizant Technology Solutions U.S.
6. Diebold, Incorporated U.S.
7. SunGard U.S.
8. Infosys Limited India
9. Nomura Research Institute, Ltd. Japan
10. Wincor Nixdorf Germany
11. Lender Processing Services U.S.
12. CA Technologies U.S.
13. First Data Corporation U.S.
14. Total System Services, Inc. U.S.
15. DST Systems U.S.
16. CoreLogic U.S.
17. SAS Institute U.S.
18. Jack Henry & Associates, Inc. U.S.
19. Equifax U.S.
20. Genpact U.S.
21. Misys UK
22. Ingenico France
23. Broadridge Financial Solutions U.S.
24. ACI Worldwide, Inc. U.S.
25. FICO U.S.
26. SS&C Technologies U.S.
27. Experian Group Limited U.S.
28. Syntel, Inc. U.S.
29. IPC Systems, Inc. U.S.
30. Temenos Group AG Switzerland
31. Fidessa Group PLC UK
32. Murex France
33. D+H Canada
34. Polaris Financial Technology India
35. Oberthur Card Systems France
36. Wolters Kluwer Financial U.S.
37. Digital Insight U.S.
38. Advent Software U.S.
39. Itautec S.A. Brazil
40. Moody’s Analytics U.S.
41. MphasiS (An HP Company) India
42. TransFirst Holdings, Inc. U.S.
43. OpenLink Financial LLC U.S.
44. Harland Financial Solutions U.S.
45. SimCorp A/S Denmark
46. CRIF Italy
47. L&T Infotech India
48. Pegasystems Inc. U.S.
49. Interactive Data Corporation U.S.
50. SIX Payment Services Switzerland
51. 3i Infotech India
52. Aegis Global Communications U.S.
53. Charles River Development U.S.
54. Calypso Technology U.S.
55. Fundtech U.S.
56. Computer Services, Inc. U.S.
57. Linedata Services S.A. France
58. Virtusa Corporation U.S.
59. GFT Group Germany
60. BancTec, Inc. U.S.
61. Collabera U.S.
62. Luxoft Holding Inc Switzerland
63. BRQ IT Services Brazil
64. Bottomline Technologies, Inc. U.S.
65. Simplex Consulting, Inc. Japan
66. Investment Technology Group, Inc. U.S.
67. NIIT Technologies Inc U.S.
68. Hundsun Technology Inc. Ltd. China
69. Eagle Investment Systems LLC U.S.
70. Bravura Solutions Limited Australia
71. NICE Actimize U.S.
72. VASCO Data Security U.S.
73. Carlisle & Gallagher Consulting U.S.
74. Silverlake Axis MSC Malaysia
75. Clear2Pay Belgium
76. ARGO Data Resource Corp U.S.
77. Scorto Corp U.S.
78. SmartStream UK
79. TransCentra, Inc. U.S.
80. Viewpointe U.S.
81. Celero Solutions Inc. Canada
82. GBST Holdings Limited Australia
83. Diasoft Russia
84. ISGN Corporation U.S.
85. Financial Technologies India
86. COCC U.S.
87. Eze Castle Integration U.S.
88. Aurionpro Solutions Limited India
89. BancVue Ltd U.S.
90. WAUSAU Financial Systems U.S.
91. TAS Group Italy
92. Multifonds Lux.
93. Primatics Financial U.S.
94. Indecomm Corporation U.S.
95. EFT Source, Inc. U.S.
96. Novantas, Inc U.S.
97. Scivantage U.S.
98. eFront Financial Solutions France
99. eMASON, Inc. U.S.
100. IND Group Germany

FinTech Startups Strategic Buyers
48
Source:
http://www.digitalgoggles.com/2013/04/06
/fintech-strategic-buyer-landscape/

50 « pépites » françaises de la FinTech
49
http://www.usine-digitale.fr/article/50-pepites-francaises-de-la-fintech.N368888

FinTech: What For?
50
Top seven reasons for using FinTech
Source: EY FinTech Adoption Index

FinTech: Why Not?
51
Top six reasons for NOT using FinTech

FinTech: How Often?
52
Most used FinTech services

FinTech Scope

“Nous vivons une ère de transformation majeure pour les services financiers. Nos petits enfants
regarderont avec amusement la façon dont nous utilisions les services bancaires au cours de la
première moitié de la décennie 2010.” (Bradley Leimer, Mechanics Bank, Californie, Avril 2014)
54
http://www.startupbootcamp.org/accelerator/insurance-london.html

FinTech: Digital Innovation in the Financial Industry

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